InterOil Corp. (IOC) said it remains in talks with the Papua New
Guinea unit of Exxon Mobil Corp. (XOM) relating to the development
of some of its gas resources and also finalized a $75 million loan
facility to step up its exploration and drilling program.
InterOil said the talks with ExxonMobil have continued even
though an exclusivity arrangement has lapsed. InterOil said it will
continue to work with Exxon Mobil to increase the pace of
monetizing its natural gas resources.
About half of the loan facility, or $37.5 million, will be drawn
on immediately, with the remainder upon the execution of an
agreement related to InterOil's Elk and Antelope fields. Under the
agreement InterOil would begin repayment following the earlier of
the first resource payment or 12 months from the first
drawdown.
Earlier this year, Exxon Mobil and InterOil were in exclusive
talks to invest in the latter's natural gas assets in Papua New
Guinea, a move that could cement the impoverished Southeast Asian
country's position as a new significant energy exporter.
Houston-based InterOil owns the Elk and Antelope natural gas
discoveries in Papua New Guinea. In 2009, it signed an agreement
with the government to develop a large-scale liquefied natural gas
project on the country's south coast.
Earlier this year InterOil said it was discussing whether gas
from the Elk and Antelope fields would support an expansion of a
major Exxon Mobil-led PNG LNG project or the new gas-export
facility.
InterOil shares were up 59 cents at $72.29 in recent premarket
trading. Exxon Mobil shares closed Friday at $87.91 and weren't
actively trading premarket.
Write to Tess Stynes at tess.stynes@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires