SINGAPORE and PORT MORESBY, Papua New Guinea, Nov. 13, 2015 /PRNewswire/ --
- Antelope-4 sidetrack-1 reaches total depth
- Antelope-6 to spud in December
- Liquidity of $473 million at
September 30
- 2016 expenditure estimate of $175-$195
million
InterOil Corporation (NYSE: IOC; POMSoX: IOC) reports that the
Antelope-4 sidetrack-1 well in Petroleum Retention License 15 (PRL
15) in Papua New Guinea has
reached total depth.
InterOil Chief Executive Dr Michael
Hession said wireline logging, which was underway, would
help to determine the extent of high-quality dolomite and overall
quality of the Elk-Antelope reservoir.
"The joint venture now intends to spud Antelope-6 in December
this year as part of the appraisal program to define the resource
for the Papua LNG Project," Dr Hession said.
"As Antelope-6 is currently the last joint venture-approved
appraisal well, InterOil's certification payment from Total could
be expected within four to six months of completion of this
well.
"However, the joint venture is considering an additional
appraisal well on the western flank of the Antelope field that
could add an incremental volume of 1 to 3 Tcfe, which could enhance
InterOil's certification payment by $400
million to $1.2 billion."
Dr Hession said InterOil maintained a healthy financial position
with access to $473 million at the
end of September 2015.
"With the transition of operatorship of PRL 15 to Total and
completion of our current exploration license commitments, we have
streamlined our operations to focus on Papua LNG and expect to
reduce our corporate and other associated costs by more than 50% in
2016," he said.
"Our expected total expenditure for next year will be less than
$200 million," he said.
Dr Hession said LNG investors and customers had shown great
interest in Papua New Guinea over
the past six months.
"Analysts acknowledge that the Papua LNG Project is one of the
world's lowest-cost, highest-return LNG opportunities and,
following prime ministerial meetings between Japan and Papua New
Guinea, Japan is
considering placing Papua New
Guinea on its priority list as a supplier of LNG," he
said.
Dr Hession said corporate activity in companies with interests
in Papua New Guinea also
highlighted the attractiveness of LNG assets.
"With strategic Asian buyers seeking LNG contracts in the 2020s,
we are fully committed to developing the Papua LNG Project to meet
this window, where demand is forecast to exceed contracted supply,"
he said.
Highlights
Papua LNG update
Antelope-4 sidetrack-1
The top of the reservoir was encountered in the Antelope-4
sidetrack-1 well at 1,875 meters (6,152 feet true vertical depth
sub-sea), 36 meters (118 feet) higher than the original Antelope-4
penetration.
On November 12, 2015, the well had
drilled to a total depth of 2,262 meters (7,421 feet true vertical
depth sub-sea) and as at November 13,
wireline logging had begun.
Antelope-6
The PRL 15 joint venture, which is operated by Total, will use a
High Arctic Energy Services rig, which was previously contracted by
InterOil, to drill the Antelope-6 appraisal well.
The rig, which is on site, is expected to start drilling in
December 2015 and will appraise the
eastern flank of the Elk-Antelope field.
Antelope-7
After positive indications from seismic reprocessing and the
successful Antelope-5 well, the PRL 15 joint venture is now
considering an additional appraisal well, Antelope-7, to test
additional multi-Tcfe upside in the western flank of the field.
Papua LNG project
In early July 2015, the PRL 15
joint venture announced locations for key infrastructure for
development of the Papua LNG Project.
The central processing facility is planned to be near the Purari
River in the Gulf Province, about 360km north-west of Port Moresby, and to be connected to the LNG
facility by onshore and offshore gas and condensate pipelines.
The LNG plant is intended to be built next to the existing PNG
LNG Project at Caution Bay near Port
Moresby.
During the quarter, the joint venture initiated basis of design
work and began discussions on LNG marketing and project
financing.
PRL 39
On September 18, 2015 InterOil
announced that Triceratops-3, an appraisal well in PRL 39, recorded
a stabilized flow rate of gas at 17.1 million standard cubic feet
and condensate at an average of 200.3 barrels a day. The stabilized
rates were obtained over several five-hour intervals and were
measured through a 72/64" choke with the flow constrained by
tubing.
The well confirmed a gas-water contact at 1,484 meters (true
vertical depth sub-sea) and supported the potential for tie-back
options.
Increased equities in PRL 39 and PPL
475
Consistent with its strategy to focus on Latin America, Pacific Exploration &
Production Corporation (previously known as Pacific Rubiales) is
withdrawing from PRL 39 (Triceratops discovery) and PPL 475 (Raptor
discovery).
As a result, InterOil's gross interest in PRL 39 will increase
from 87.0968%# to 100%# and its gross interest in the Triceratops
discovery will increase from 69.0931% to 78.1114%.
In PPL 475, InterOil's gross interest will increase from
87.0968%# to 100%# and its gross interest in Raptor will increase
from 66.2082% to 79.1114%.
# = excludes minority interests
Streamlined business, lower expenditure in 2016
The company continued to streamline its operations and reduce
costs after handing operatorship of PRL 15 to Total in August this
year.
InterOil's focus is firmly on the Papua LNG Project and PRL
15.
Discretionary drilling, including appraisal of the Raptor,
Bobcat and Triceratops discoveries will be deferred until the
Antelope appraisal program is complete.
The company's 2016 estimated expenditure of between $175 million and $195 million will be less than
that of the previous year and corporate and associated costs will
be reduced by more than 50% compared to 2015.
Expected major costs for the year include drilling and testing
in the Elk-Antelope appraisal program plus the basis of design and
early front-end engineering and design work for the Papua LNG
Project.
After acquiring nearly 1,000km of seismic over the past two
years and obtaining high-definition airborne gravity gradiometry
over 80% of its entire acreage, the company will high-grade its
prospects and leads and integrate the data into its regional
geological model.
Financial update
InterOil recorded a loss of $103.7
million for the quarter, primarily due to plugging and
abandoning the Wahoo sidetrack well.
After net expenditure of $68
million, InterOil ended the third quarter with liquidity of
$473 million, including cash and
receivables of $173 million.
In 2010, the company issued $70
million of convertible notes, which are due for redemption
on November 16, 2015.
Summary of Consolidated Quarterly Financial
Results for Past Eight Quarters Financial Statements
Quarters ended
($ thousands except per share data)
|
2015
|
2014
|
2013
|
Sep-30
|
Jun-30
|
Mar-31
|
Dec-31
|
Sep-30
|
Jun-30
|
Mar-31
|
Dec-31
|
Total
revenues
|
11,822
|
(13,643)
|
13,215
|
(13,182)
|
10,749
|
13,689
|
1,903
|
712
|
EBITDA
(1)
|
(101,838)
|
(30,583)
|
(20,317)
|
(60,443)
|
(12,133)
|
(10,253)
|
316,948
|
(27,272)
|
Net
(loss)/profit
|
(103,725)
|
(32,531)
|
(21,869)
|
(64,205)
|
(16,930)
|
52,265
|
318,636
|
(24,812)
|
From continuing
operations
|
(103,725)
|
(32,531)
|
(21,869)
|
(62,474)
|
(14,622)
|
(15,765)
|
310,824
|
(32,024)
|
From discontinued
operations
|
-
|
-
|
-
|
(1,731)
|
(2,308)
|
68,030
|
7,812
|
7,212
|
Basic
(loss)/earnings per share
|
(2.09)
|
(0.66)
|
(0.44)
|
(1.30)
|
(0.34)
|
1.05
|
6.46
|
(0.50)
|
From continuing
operations
|
(2.09)
|
(0.66)
|
(0.44)
|
(1.26)
|
(0.29)
|
(0.31)
|
6.30
|
(0.65)
|
From discontinued
operations
|
-
|
-
|
-
|
(0.04)
|
(0.05)
|
1.36
|
0.16
|
0.15
|
Diluted
(loss)/earnings per share
|
(2.09)
|
(0.66)
|
(0.44)
|
(1.30)
|
(0.34)
|
1.05
|
6.38
|
(0.50)
|
From continuing
operations
|
(2.09)
|
(0.66)
|
(0.44)
|
(1.26)
|
(0.29)
|
(0.31)
|
6.22
|
(0.65)
|
From discontinued
operations
|
-
|
-
|
-
|
(0.04)
|
(0.05)
|
1.36
|
0.16
|
0.15
|
|
Note (1) EBITDA is a
non-GAAP measure and is reconciled to IFRS under the heading
"Non-GAAP Measures and Reconciliation".
|
More details can be
found in InterOil's financial statements and Management and
Discussion Analysis for the quarter ended September 30, 2015 on
www.interoil.com .
|
Conference call information
The full text of the media release and accompanying financials
are available on the company's website at www.interoil.com .
A conference call will be held on November 13, 2015, at 8am US Eastern time (9pm Singapore)
to discuss the financial and operating results.
The conference call can be heard through a live audio web cast
on the company's website at www.interoil.com or accessed by dialing
(800) 230-1085 in the US, or +1 (612) 234-9960 from outside the US.
A replay of the broadcast will be available soon afterwards on the
website.
About InterOil
InterOil Corporation is an independent oil and gas business with
a sole focus on Papua New Guinea.
InterOil's assets include one of Asia's largest undeveloped gas fields,
Elk-Antelope, in the Gulf Province, and exploration licenses
covering about 16,000sqkm. Its main offices are in Singapore and Port
Moresby. InterOil is listed on the New York and Port
Moresby stock exchanges.
Investor Contacts
Singapore
|
Singapore
|
United
States
|
Michael
Lynn
Senior Vice
President
Investor
Relations
|
David Wu
Vice
President
Investor
Relations
|
Cynthia
Black
Investor
Relations
North
America
|
T: +65 6507
0222
E:
michael.lynn@interoil.com
|
T: +65 6507
0222
E:
david.wu@interoil.com
|
T: +1 212 653
9778
E:
cynthia.black@interoil.com
|
Media Contacts
Singapore
|
Australia
|
|
Rob
Millhouse
Vice
President
Corporate
Affairs
|
John Hurst
Cannings
Corporate
Communications
|
|
T: +65 8112
5694
E:
robert.millhouse@interoil.com
|
T: +61 418 708
663
E:
jhurst@cannings.net.au
|
|
Forward Looking Statements
This media release includes "forward-looking statements" as
defined in United States federal
and Canadian securities laws. All statements, other than statements
of historical facts, included in this release that address
activities, events or developments that InterOil expects, believes
or anticipates will or may occur in the future are forward-looking
statements. Well test results should be considered as preliminary.
Well log interpretations indicating gas accumulations are not
necessarily indicative of future production or ultimate recovery.
There is no assurance that reserves will be assigned to such
fields. With undiscovered resources (including prospective
resources), there is no certainty that any portion of the resources
will be discovered. If discovered, there is no certainty that it
will be commercially viable to produce any portion of the
resources. Readers should refer to our Annual Information Form for
additional information about and cautionary language regarding
resources. Trillions of cubic feet of gas equivalent ("Tcfe")
amounts have been calculated by using the conversion ratio of one
barrel of oil (1 bbl) to six thousand cubic feet (6 Mcf) of natural
gas. Tcfe amounts may be misleading, particularly if used in
isolation. A conversion ratio of 1 bbl to 6 Mcf is based on an
energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the
wellhead. The estimates of the company's natural gas and condensate
resources provided in this release are estimates only and there is
no guarantee that the estimated resources will be recovered. Actual
natural gas and condensate resources may be greater or less than
the estimates provided in this release, and the difference may be
material. These statements are based on our current beliefs as well
as assumptions made by, and information currently available to us.
No assurances can be given however, that these events will occur.
Actual results could differ, and the difference may be material and
adverse to the company and its shareholders. Such statements are
subject to a number of assumptions, risks and uncertainties, many
of which are beyond the control of the company, which may cause our
actual results to differ materially from those implied or expressed
by the forward-looking statements. Some of these factors include
the risk factors discussed in the company's filings with the
Securities and Exchange Commission and on SEDAR, including but not
limited to those in the company's annual report for the year ended
December 31, 2014 on Form 40-F and
its Annual Information Form for the year ended December 31, 2014. In particular, there is no
established market for natural gas or gas condensate in
Papua New Guinea and no guarantee
that gas or gas condensate will ultimately be able to be extracted
and sold commercially. Investors are urged to consider closely the
disclosure in the company's Form 40-F, available from us at
www.interoil.com or from the SEC at www.sec.gov and its
Annual Information Form available on SEDAR at www.sedar.com.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/interoil-drilling-and-q3-2015-update-300178357.html
SOURCE InterOil Corporation