UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
__________________
Form 40-F
(Check One)
¨
Registration
statement pursuant to Section 12 of the Securities Exchange Act of 1934
or
x
Annual
report pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934
For the fiscal year ended December 31,
2015
Commission File Number: 001-32179
__________________
INTEROIL
CORPORATION
(Exact name of registrant as specified
in its charter)
YUKON, CANADA
(Province or other jurisdiction of incorporation
or organization)
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1311
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Not Applicable
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(Primary Standard Industrial Classification
Code Number)
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(I.R.S. Employer Identification Number)
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163 PENANG ROAD
#06-02 WINSLAND HOUSE II
SINGAPORE 238463
Telephone Number: +65 6507-0222
(Address and telephone number of registrant’s
principal executive offices)
CT Corporation Systems
111 Eighth Avenue
New York, New York 10011
Telephone Number: (212) 894-8940
(Name, address (including zip code) and
telephone number
(including area code) of agent for service
in the United States)
Copy to:
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Sheree Ford
InterOil Corporation
163 Penang Road
#06-02 Winsland House II
Singapore 238463
Telephone Number: +65 6507-0222
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Securities registered or to be registered pursuant to Section
12(b) of the Act:
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Title of each class
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Name of each exchange
on which registered
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Common Shares
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New York Stock Exchange
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Securities registered or to be registered pursuant to Section
12(g) of the Act:
None
Securities for which there is a reporting obligation pursuant
to Section 15(d) of the Act:
None
For annual reports, indicate by check mark the information
filed with this form:
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x
Annual Information Form
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x
Audited Annual Financial Statements
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As of December 31, 2015, 49,572,811 of the issuer’s common
shares were outstanding.
Indicate by check mark whether the registrant by filing the
information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934 (the “Exchange Act”). If “Yes” is marked, indicate the filing number
assigned to the registrant in connection with such rule.
¨
Yes 82-______
x
No
Indicate by check mark whether the registrant: (1) has filed
all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past
90 days.
x
Yes
¨
No
Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant
to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that
the Registrant was required to submit and post such files).
¨
Yes
¨
No
FORWARD-LOOKING STATEMENTS
This Annual Report on
Form 40-F contains or incorporates by reference forward-looking statements relating to future events or future performance. In
some cases, forward-looking statements can be identified by terminology such as
“may,”
“plans,” “believes,” “expects,” “anticipates,” “intends,” “estimates,”
“forecasts,” “budgets,” “targets” or other similar wording suggesting future outcomes or statements
regarding an outlook
. These statements represent management's expectations or beliefs concerning, among other things, future
operating results and various components thereof or the economic performance of InterOil Corporation (the “Company”).
Undue reliance should not be placed on these forward-looking statements which are based upon management's assumptions and are
subject to known and unknown risks and uncertainties which may cause actual performance and financial results in future periods
to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements.
Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted.
For a description of some of these risks, uncertainties, events and circumstances, readers should review the disclosure under
the heading "Risk Factors" in the Company's Annual Information Form for the year ended December 31, 2015, which is attached
as Exhibit 99.1 to this Annual Report on Form 40-F and is incorporated by reference herein. Other than as required by applicable
law, the Company undertakes no obligation to update publicly or revise any forward-looking statements contained herein and such
statements are expressly qualified by the cautionary statement.
PRINCIPAL
DOCUMENTS
The following documents
have been filed as part of this Annual Report on Form 40-F (
“Report”
) for the Company:
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A.
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Annual Information Form
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The 2015 Annual Information
Form for the Company is incorporated herein by reference.
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B.
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Audited Annual Financial Statements
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The audited consolidated
financial statements of the Company for the years ended December 31, 2015, 2014 and 2013, including the report of PricewaterhouseCoopers
(the Company’s independent registered public accounting firm) with respect thereto, are incorporated herein by reference.
These audited consolidated financial statements have been prepared in accordance with International Financial Reporting Standards
as issued by the International Accounting Standards Board applicable to the preparation of financial statements.
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C.
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Management’s Discussion
and Analysis
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The Management Discussion
and Analysis for the Company for the year ended December 31, 2015 (
“MD&A”
) is incorporated herein
by reference.
EVALUATION
OF DISCLOSURE CONTROLS AND PROCEDURES
The
term “disclosure controls and procedures” is defined in Rules 13a-15(e) and 15d-15(e) of the Securities and Exchange
Act of 1934, as amended (the “
Exchange Act
”).
This term refers to the controls and procedures of an issuer that are designed to ensure that information required to be disclosed
by an issuer in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within
the time periods specified in the Securities and Exchange Commission’s (the “
Commission
”)
rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that
information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated
and communicated to the issuer’s management, including its principal executive and principal financial officer, or persons
performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
Under
the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer
and Chief Financial Officer, the Company evaluated the effectiveness of the Company’s disclosure controls and procedures.
Based on this evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s
disclosure controls and procedures were effective as of December 31, 2015.
MANAGEMENT’S
ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Responsibility
The
Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting
(as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act). The Company’s internal control over financial reporting
is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with International Financial Reporting Standards.
Inherent
Limitations
Because
of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Additionally,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because
of a change in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Assessment
Management,
with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, assessed the effectiveness
of the Company’s internal control over financial reporting as of December 31, 2015, using the criteria set forth in the
framework established by the Committee of Sponsoring Organizations of the Treadway Commission entitled
Internal Controls —
Integrated Framework (2013)
. Based on this assessment, the Company’s management determined that the Company’s
internal control over financial reporting was effective as of December 31, 2015.
Management's
assessment of the effectiveness of the Company's internal control over financial reporting as of December 31, 2015 has been audited
by PricewaterhouseCoopers, an independent registered public accounting firm, as stated in their attestation report included on
page 2
of the consolidated financial statements in
this Report.
CHANGES
IN INTERNAL CONTROL OVER FINANCIAL REPORTING
There have been no
changes in internal control over financial reporting during the fiscal year 2015 that have materially affected, or are reasonably
likely to materially affect our internal control over financial reporting.
AUDIT
AND RISK COMMITTEE
The Audit and Risk
Committee of the Company’s Board of Directors is comprised of Mr. Chee Keong Yap, Mr. Roger Lewis, Sir Wilson Kamit, Dr.
Ellis Armstrong and Ms. Katherine Hirschfield. The Board of Directors has affirmatively determined that each member of the Audit
Committee is financially literate and is an independent director for purposes of the New York Stock Exchange rules applicable
to members of the audit committee. Additionally, the Board of Directors has determined that Mr. Yap has the accounting or financial
management expertise to be considered a “financial expert” as defined by the final rules approved by the Commission
implementing the requirements set forth in Section 407 of the Sarbanes-Oxley Act of 2002.
The Commission has
indicated that the designation or identification of a person as an "audit committee financial expert" does not (i) mean
that such person is an "expert" for any purpose, including without limitation for purposes of Section 11 of the Securities
Act of 1933, as amended, (ii) impose on such person any duties, obligations or liability that are greater than the duties, obligations
and liability imposed on such person as a member of the audit committee and the board of directors in the absence of such designation
or identification, or (iii) affect the duties, obligations or liability of any other member of the audit committee or the board
of directors.
CODE OF ETHICS AND BUSINESS
CONDUCT
The Company’s
Board of Directors has adopted a Code of Ethics and Business Conduct which applies to all directors, officers and employees of
the Company. The Board has not granted any waivers to the Code of Ethics and Business Conduct. The Code of Ethics and Business
Conduct is accessible on the Company’s website at http://www.interoil.com/governance.asp. Any amendment to or waiver of
the Code of Ethics and Business Conduct that applies to the Company’s Chief Executive Officer, Chief Financial Officer,
principal accounting officer or controller will also be posted on the Company’s website. During the fiscal year ended December
31, 2015, there were no waivers, including implicit waivers, granted from any provision of the Code of Ethics and Business Conduct
that applied to the Company's principal executive officer, principal financial officer, principal accounting officer or controller,
or persons performing similar functions.
PRINCIPAL
ACCOUNTANT FEES AND SERVICES
Audit Fees.
Fees billed for professional services rendered related to the audit of the Company’s annual consolidated financial statements
for the fiscal years ended December 31, 2015 and December 31, 2014 by PricewaterhouseCoopers for services that are normally provided
by such accountant in connection with statutory or regulatory filings or engagements for such fiscal years were $1,598,715 and
$1,896,489, respectively, including out-of-pocket expenses.
Audit-Related Fees.
Fees billed for assurance and related services reasonably related to the performance of the audit or review of the Company’s
financial statements and not reported under “Audit Fees” were $nil for each of the fiscal years ended December 31,
2015 and December 31, 2014, respectively.
Tax Fees.
Fees billed for professional services rendered related to tax compliance, tax advice, and tax planning services for the Company
for the fiscal years ended December 31, 2015 and December 31, 2014 by PricewaterhouseCoopers were $730,482 and $472,129, respectively.
All Other Fees.
Fees billed for all other products and services for the Company for the fiscal years ended December 31, 2015 and December 31,
2014 by PricewaterhouseCoopers were $22,572 and $38,525, respectively. The fees related to the filing of the Company’s shelf
registration statement during the year ended December 31, 2015. The fees for the year ended December 31, 2014 related to the annual
license renewal of Comperio, an online library of financial reporting tools and certain tax advice in relation to expatriate benefits
and certain transfer pricing documentation.
Pre-Approval.
The Audit and Risk Committee of the Company’s Board of Directors has adopted a policy that requires pre-approvals of all
auditing services, including the compensation and terms of the audit engagement, and all other non-audit services to be performed
by the Company’s independent auditors, subject to certain de-minimus exceptions. Non-audit services subject to the
de-minimus exceptions described in Section 10A(i)(1)(B) of the Exchange Act may be approved by the Audit and Risk Committee prior
to the completion of the audit. All of the services provided by the Company’s independent auditors during 2015 and
2014 were pre-approved by the Audit and Risk Committee. No hours expended by PricewaterhouseCoopers to audit the Company’s
financial statements for the years ended December 31, 2015 and 2014 were attributed to work performed by persons other than full-time,
permanent employees of PricewaterhouseCoopers.
OFF
BALANCE SHEET ARRANGEMENTS
Please see the section
titled “Liquidity and Capital Resources—Off Balance Sheet Arrangements” in the Company’s MD&A, which
is incorporated herein by reference.
CONTRACTUAL
OBLIGATIONS
Please see the section
titled “Liquidity and Capital Resources—Contractual Obligations and Commitments” in the Company’s MD&A,
which is incorporated herein by reference.
UNDERTAKING
The Company undertakes
to make available, in person or by telephone, representatives to respond to inquiries made by the Commission staff, and to furnish
promptly, when requested to do so by the Commission staff, information relating to: the securities registered pursuant to Form
40-F; the securities in relation to which the obligation to file an annual report on Form 40-F arises; or transactions in said
securities.
CONSENT
TO SERVICE PROCESS
The Company has previously
filed a Form F-X in connection with the class of securities in relation to which the obligation to file this Report arises.
disclosure
required by new york stock exchange
The Company is classified
as a “foreign private issuer” in connection with its listing on the New York Stock Exchange (“
NYSE
”).
As a result, many of the governance rules of the NYSE that apply to U.S. domestic companies do not apply to the Company. However,
as a Canadian public company, the Company has in place a system of corporate governance practices that meets Canadian requirements.
Additionally, the
NYSE listing standards require foreign private issuers to make certain corporate governance disclosures, including disclosure
of any significant differences between its governance practices and the NYSE governance rules. The following is the NYSE required
disclosure:
Presiding Director
at Meetings of Non-Management Directors.
Section 303A.03 of the NYSE Listed Company Manual requires “non-management
directors” to schedule regular executive sessions without members of management present. “Non-management directors”
are defined in Section 303A.03 as all directors who are not executive officers. The Company schedules executive sessions on a
regular basis in which the Company's non-management directors meet without management participation. Mr. Chris Finlayson serves
as the presiding director (the “
Presiding Director
”) at such sessions. The Board of Directors is responsible
for determining whether or not each director is independent. The Board of Directors has adopted the director independence standards
contained in Section 303A.02 of the NYSE’s Listed Company Manual for the purposes of satisfying the NYSE’s applicable
governance requirements.
Communication with
Non-Management Directors.
Shareholders may send communications to the Company's non-management directors by writing to the
Presiding Director, c/o Sheree Ford, Corporate Secretary, InterOil Corporation, 163 Penang Road, #06-02 Winsland House II, Singapore
238463, Telephone: +65 6507 0222. Communications will be referred to the Presiding Director for appropriate action. The status
of all outstanding concerns addressed to the Presiding Director will be reported to the Board of Directors as appropriate.
Audit Committee
.
Section 303A.06 of the NYSE Listed Company Manual requires listed companies to have an audit committee composed entirely of independent
directors. The Company has established an Audit and Risk Committee composed entirely of directors who qualify as independent under
the requirements of Rule 10A-3 of the Exchange Act, and Section 303A.07 of the NYSE Listed Company Manual. The Company also complies
with Canadian Multilateral Instrument 52-110-Audit Committees, which sets out detailed requirements regarding the composition
of the Audit and Risk Committee and its responsibilities.
Corporate Governance
Guidelines
. According to Section 303A.09 of the NYSE Listed Company Manual, a listed company must adopt and disclose a set
of corporate governance guidelines with respect to specified topics. Such guidelines are required to be posted on the listed company’s
website. The Company operates under corporate governance principles that are consistent with the requirements of Section 303A.09
of the NYSE Listed Company Manual, many of which are described under the heading “Statement of Corporate Governance Practice”
in the Company’s Annual Information Circular. However, the Company has not codified its corporate governance principles
into formal guidelines.
Shareholder Meeting
Quorum Requirement.
The NYSE governance rules do not contain a minimum quorum requirement for a shareholder meeting, but gives
careful consideration to provisions in a listed company’s by-laws that fixes a quorum for a shareholders’ meeting
at less than a majority of the outstanding shares. The Company’s quorum requirement is set forth in its By-Laws. A quorum
for a meeting of shareholders is present, irrespective of the number of persons actually present at the meeting, if the holder
or holders of five percent (5%) of the shares entitled to vote at the meeting are present in person or represented by proxy.
Proxy Delivery
Requirement.
The NYSE requires the solicitation of proxies and delivery of proxy statements for all shareholder meetings,
and requires that these proxies shall be solicited pursuant to a proxy statement that conforms to the Commission’s proxy
rules. The Company is a “foreign private issuer” as defined in Rule 3b-4 under the Exchange Act, and the equity securities
of the Company are accordingly exempt from the proxy rules set forth in Sections 14(a), 14(b), 14(c) and 14(f) of the Exchange
Act. The Company solicits proxies in accordance with applicable rules and regulations in Canada.
Board Committee
Mandates
. The mandates of the Company’s Audit and Risk Committee, Compensation Committee, Reserves Committee and Nominating
and Corporate Governance Committee are each available for viewing on the Company’s website at
www.interoil.com/governance.asp
,
and are available in print to any shareholder who requests them. Requests for copies of these documents should be made by contacting
Sheree Ford, Corporate Secretary, InterOil Corporation, 163 Penang Road, #06-02 Winsland House II, Singapore 238463, Telephone:
+65 6507 0222.
SIGNATURES
Pursuant to the requirements of the Exchange
Act, the Company certifies that it meets all of the requirements for filing on Form 40-F and has duly caused this Report to be
signed on its behalf by the undersigned, thereunto duly authorized.
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INTEROIL CORPORATION
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/s/ Michael Hession
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Michael Hession
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Chief Executive Officer
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Date: March 30, 2016
EXHIBIT INDEX
The following exhibits have been filed
as part of the Annual Report:
EXHIBIT
NUMBER
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DESCRIPTION
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1.
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Annual Information Form for the year ended December 31, 2015.
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2.
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Audited annual consolidated financial statements for the year
ended December 31, 2015, 2014 and 2013.
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3.
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Management’s Discussion and Analysis for the year ended
December 31, 2015.
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4.
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Consent of PricewaterhouseCoopers dated March 30, 2016.
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5.
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Consent of
GLJ Petroleum Consultants Limited
dated March 30, 2016.
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6.
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Consent of
RISC Operations Pty Limited
dated March 30, 2016.
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7.
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Certification of Chief Executive Officer pursuant to Rule 13a-14(a)
or 15d-14(a) of the Securities and Exchange Act of 1934, as amended.
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8.
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Certification of Chief Financial Officer pursuant to Rule 13a-14(a)
or 15d-14(a) of the Securities and Exchange Act of 1934, as amended.
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9.
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Certification of Chief Executive Officer pursuant to Rule 13a-14(b)
or Rule 15d-14(b) of the Securities and Exchange Act of 1934, as amended, and Section 1350 of Chapter 63 of Title 18
of the United States Code.
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10.
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Certification of Chief Financial Officer pursuant to Rule 13a-14(b)
or Rule 15d-14(b) of the Securities and Exchange Act of 1934, as amended, and Section 1350 of Chapter 63 of Title 18
of the United States Code.
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