SINGAPORE and PORT MORESBY, Papua New Guinea, March 30, 2016 /PRNewswire/ --
Key highlights
- Antelope-6 identified 138 feet of dolomite with connectivity to
rest of field
- Antelope-5 extended well test confirms excellent reservoir
qualities
- Entering final stages of appraisal of the Elk-Antelope
field
- GLJ increases year-end
Contingent Resource estimate
- Raptor 3.6 Tcfe, Bobcat 2.4 Tcfe (independent est'd gross unrisked 2C resource)
- $252 million liquidity at end
2015. Proposal to increase and extend credit facility.
InterOil Corporation ("InterOil", NYSE: IOC; POMSoX: IOC) today
provided an update on its operations and financial results for the
fourth quarter and financial year ending December 31, 2015.
InterOil Chief Executive Dr Michael
Hession said momentum was building for the multi-billion
dollar Papua LNG project with Antelope-6 intersecting 42 meters
(138 feet) of dolomite with connectivity to the rest of the
Antelope field. In addition the excellent reservoir qualities,
identified by a short flow test last year at Antelope-5, were
successfully confirmed by a longer flow-test in Q1 2016.
"During 2015, significant milestones were achieved with the
appointment of Total as operator and the selection of the Papua LNG
project's key infrastructure sites. Analysis from independent
sources suggests Papua LNG will be one of the most competitive
new-build LNG projects globally, with short shipping distances to
Asian markets and potential for attractive returns.
"The data from the last three appraisal wells have surprised on
the upside and extended flow tests have confirmed connectivity,
deliverability and excellent reservoir quality across Antelope.
This will mean a less complex and lower cost development," said Dr Hession.
"While the analysis of the Antelope-6 well and the Antelope-5
flow test is continuing, results to date have been encouraging and
we remain confident of a two-train LNG development. On completion
of the appraisal program, data will be submitted to two independent
auditors for certification, a process which could take four to six
months.
"Following last year's restructuring and streamlining of the
business, we have reduced guidance on our expected 2016 spend to a
lower range of $155 million to $170
million, predominantly focused on the Papua LNG project.
While we have $252 million in current
liquidity at the end of 2015, we are in discussions with our
lenders to increase and extend our credit facility. It is proposed
to complete the increased and extended facility in the second
quarter of 2016.
"In 2015, the Company had the Raptor and Bobcat discoveries
independently assessed for 2C natural gas and natural gas
liquids**. These equate to a gross unrisked resource estimate
of 3.6 Tcfe and 2.4 Tcfe respectively. This first-time external
assessment provides a good basis for discussions with various
strategic partners.
"Our focus in 2016 will be on completing the appraisal program,
progressing the certification of Elk-Antelope volumes, advancing
the world-class Papua LNG project from Basis of Design to FEED and
monetizing our independently assessed discoveries with strategic
partners," stated Dr Hession.
Positive appraisal results at Elk-Antelope (PRL 15)
The Antelope-4 Side Track, located about 1km
south-south-east of Antelope-2, intersected the top of the
reservoir at 1,875 meters (6,152 feet) true vertical depth sub-sea
(TVDSS) in a position that was 36 meters (118 feet) higher than the
original Antelope-4 penetration.
In addition, the Antelope-4 sidetrack-1 confirmed the southern
extension of the Elk-Antelope field's high-quality, gas-bearing
dolomite. Wireline logging indicates 182 vertical meters (597 feet)
of dolomite and a vertical gross gas column of about 339 meters
(1,112 feet).
Antelope-5 appraised the western flank of Elk-Antelope
about 1.8km south-south-west of Antelope-3. The top of the
carbonate reservoir was intersected at 1,534 meters (5,033 feet)
TVDSS, about 230 meters (755 feet) higher than InterOil's reference
case. The result provides evidence that the good quality, reefal
reservoir extends further west than originally thought.
During June 2015, a well test at
Antelope-5 flowed a total volume of 152.9 million standard cubic
feet gas (mmscf) of gas over a 72 hour period with listening gauges
in Antelope-1. An extended well test of Antelope-5 in early 2016
flowed a total volume of 760 mmscf over 14 days and then was
shut-in for 16 days to record the subsequent pressure build-up.
Antelope-6, about 2km east-south-east of Antelope-3,
provided structural control and reservoir definition on the field's
eastern flank. The well encountered top reservoir within
expectations at approximately 2,076 meters (6,811 feet) TVDSS.
The presence of approximately 42 meters (138 feet) of dolomite
in the 138 meter (453 feet) reservoir section above the gas-water
contact (GWC) was positive, as was the multi-rate flow test over an
interval from 2,076 to 2,142 meters (6,811 to 7,027 feet) TVDSS
which achieved a final stabilized flow rate of 13 million standard
cubic feet gas per day (mmcfpd) over a 24 hour period on a 40/64"
choke. The test pressure readings from gauges in Antelope-5 and
Antelope-1 indicated strong connectivity between these two wells
and Antelope-6, 2.5km away. Strong connectivity will support a
simpler and lower cost LNG development.
Antelope-6 reached a total depth of 2,462 meters (8,077 feet)
TVDSS.
Following the full analysis of the recent flow test and drilling
results, the PRL 15 JV is expected to decide in Q2 2016 if a
further appraisal well, Antelope-7, is required. The encouraging
appraisal data gathered to date continues to support InterOil's
confidence in a two-train LNG development.
Triceratops appraisal (PRL 39)
Triceratops-3 was drilled to appraise the Triceratops
discovery to the north-west of Triceratops-1 and Triceratops-2 in
PRL 39. The field is about 45km west-north-west of Elk-Antelope.
The well reached a total depth of 1,567 meters (5,141 feet) TVDSS
and successfully flowed gas at a tubing constrained rate of 17.1
mmcfpd and condensate at an average of 200.3 barrels a day.
Stabilized flow rates were obtained over several five-hour
intervals, measured through a 72/64" choke.
Independent resource evaluations
GLJ Petroleum Consultants Ltd ("GLJ"), an independent qualified
reserves evaluator, prepared an independent evaluation of
Contingent Resources for the Elk-Antelope Field as at December 31, 2015 which estimated the gross
unrisked Contingent Resources for the Elk-Antelope
field# of 7.7 Tcfe 1C, 10.2 Tcfe 2C and 12.4 Tcfe
3C.
#
|
Previously GLJ
estimates for Contingent Resources were 7.5 Tcfe 1C, 9.9 Tcfe 2C,
11.8 Tcfe, as at December 31, 2014.
|
After the completion of the Triceratops-3 appraisal well, GLJ
prepared an independent evaluation of Contingent Resources for the
Triceratops field as at December, 31, 2015, which estimated
gross unrisked Contingent Resources of 0.38 Tcfe 2C.
In addition, RISC Operations Pty Ltd ("RISC"), qualified
reserves evaluator, provided independent estimates as at
December 31, 2015 for the Raptor
and Bobcat discoveries**. These equate to a gross unrisked
resource estimate of 3.6 Tcfe and 2.4 Tcfe respectively.
The Raptor, Bobcat and Triceratops discoveries provide
optionality for tie back to an LNG facility and the latest
independent volume estimates reaffirm InterOil's belief that a
significant commercial gas hub could be developed within a 40km (25
mile) radius of the Elk-Antelope Field.
Please refer to "Disclosure of Oil and Gas Information" at the
end of this release for cautionary notes regarding disclosure of
Contingent Resources.
More details can be found in the appendix to the Company's
Annual Information Form for the year ended December 31, 2015 which is available on
www.interoil.com or from the Securities Exchange Commission at
www.sec.gov or on SEDAR at www.sedar.com.
**
|
RISC certified Raptor
with 2C Natural Gas estimate of 2.951 Tcf with Natural Gas Liquids
of 117 mmbbl. Bobcat was certified with a 2C Natural Gas estimate
of 2.214 Tcf with Natural Gas Liquids of 30 mmbbl. Tcfe is
calculated as Gas volume (Tcf) + 6x Condensate Volume
(mmbbl)/1000).
|
Financial summary
Summary of
Consolidated Quarterly Financial Results - Past Eight Quarters
Financial Statements
|
|
Quarters ended
($ thousands except per share data)
|
2015
|
2014
|
|
Dec-31
|
Sep-30
|
Jun-30
|
Mar-31
|
Dec-31
|
Sep-30
|
Jun-30
|
Mar-31
|
|
Total
revenues
|
11,690
|
11,822
|
(13,643)
|
13,215
|
(13,182)
|
10,749
|
13,689
|
1,903
|
|
EBITDA
|
(81,543)
|
(101,838)
|
(30,583)
|
(20,317)
|
(60,443)
|
(12,133)
|
(10,253)
|
316,948
|
|
Net
(loss)/profit
|
(83,830)
|
(103,725)
|
(32,531)
|
(21,869)
|
(64,205)
|
(16,930)
|
52,265
|
318,636
|
|
From continuing
operations
|
(83,830)
|
(103,725)
|
(32,531)
|
(21,869)
|
(62,474)
|
(14,622)
|
(15,765)
|
310,824
|
|
From discontinued
operations
|
-
|
-
|
-
|
-
|
(1,731)
|
(2,308)
|
68,030
|
7,812
|
|
Basic (loss)/earnings per share
|
(1.69)
|
(0.29)
|
(0.66)
|
(0.44)
|
(1.30)
|
(0.34)
|
1.05
|
6.46
|
|
From continuing operations
|
(1.69)
|
(0.29)
|
(0.66)
|
(0.44)
|
(1.26)
|
(0.29)
|
(0.31)
|
6.30
|
|
From discontinued operations
|
-
|
-
|
-
|
-
|
(0.04)
|
(0.05)
|
1.36
|
0.16
|
|
Diluted (loss)/earnings per share
|
(1.69)
|
(2.09)
|
(0.66)
|
(0.44)
|
(1.30)
|
(0.34)
|
1.05
|
6.38
|
|
From continuing
operations
|
(1.69)
|
(2.09)
|
(0.66)
|
(0.44)
|
(1.26)
|
(0.29)
|
(0.31)
|
6.22
|
|
From discontinued
operations
|
-
|
-
|
-
|
-
|
(0.04)
|
(0.05)
|
1.36
|
0.16
|
|
|
Note: 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 year ended December 31, 2015 on www.interoil.com.
InterOil recorded a net loss of $83.8
million for the last quarter in 2015, compared to a net loss
of $64.2 million in the last quarter
of 2014. The net loss after tax for the full year 2015 was
$241.9 million, compared to a net
profit of $289.8 million in 2014.
The main difference in net profit is due to a $340.5 million accounting conveyance gain in 2014
received from the sale of 40.1% interest in PRL15 to Total E&P
PNG Limited and the sale of the company's refinery and downstream
businesses to Puma Energy Pacific Holdings Pte Ltd. In 2015,
InterOil recorded losses mainly due to the Wahoo exploration
impairment, provision for seismic and drilling related costs as
well as restructuring related costs.
In the last quarter of 2015, InterOil's net expenditure on
drilling, seismic and other costs was $71
million. InterOil accounted for $80
million of working capital adjustments and also repaid the
$70 million convertible notes which
were redeemed in November 2015.
The Company's liquidity position at the end of 2015 is
$252 million. Guidance for 2016
expenditure was previously estimated at $175
million to $195 million. Following InterOil's restructuring
and streamlining of its business, this guidance for 2016
expenditure has been reduced to $155 million
to $170 million.
InterOil is in discussions with its lenders to increase and
extend the current credit facility. This is proposed to be
completed in the second quarter of 2016.
Conference call information
Information including this media
release, the Q4 2015 and full-year 2015 materials plus the
accompanying financials are available on the company's website
at www.interoil.com.
A conference call will be held on March
30, 2016, at 8:00 a.m. US
Eastern time (8:00 p.m. 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) 611 1147 in the US, or +1 (612) 332
0228 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 of Papua New Guinea, and exploration licences
covering about 16,000sqkm of the Eastern Papuan Basin. 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
SVP, Investor
Relations
|
David Wu
VP, 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
|
|
Ann Lee
Communications
Specialist
|
|
T: +65 6507
0222
E:
ann.lee@interoil.com
|
|
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. These statements are based on our current beliefs as
well as assumptions made by, and information currently available to
the company. 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 United States 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, 2015 on Form 40-F and its Annual Information Form for
the year ended December 31, 2015. 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. All forward-looking statements
are made as of the date of this press release and the fact that
this press release remains available does not constitute a
representation by InterOil that InterOIl believes these
forward-looking statements continue to be true as of any subsequent
date. Actual results may vary materially from the expected results
expressed in forward-looking statements. InterOil disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as expressly required by applicable securities
laws. InterOil's forward-looking statements are expressly qualified
in their entirety by this cautionary statement.
Investors are urged to consider closely the disclosure in the
company's Form 40-F, available from the company at www.interoil.com
or from the SEC at www.sec.gov and its Annual Information Form
available on SEDAR at www.sedar.com.
Disclosure of Oil and Gas Information
Trillion cubic feet equivalent (Tcfe) may be misleading,
particularly if used in isolation. A tcfe conversion ratio of
one barrel of oil to six thousand cubic feet of gas is based on an
energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the
wellhead.
Well test results should be considered as preliminary. Well log
interpretations indicating gas accumulations are not necessarily
indicative of future production or ultimate recovery.
Estimates of InterOil's Contingent Resources are based upon the
GLJ Elk-Antelope Report, the GLJ Triceratops Report and the RISC
Raptor and Bobcat Report, which have each been prepared in
accordance with the COGE Handbook. All of InterOil's Contingent
Resources have been classified as conventional natural gas and
natural gas liquids.
Contingent Resources are those quantities of natural gas and
condensate estimated, as of a given date, to be potentially
recoverable from known accumulations using established technology
or technology under development, but which are not currently
considered to be commercially recoverable due to one or more
contingencies. The economic status of the resources is
undetermined and there is no certainty that it will be commercially
viable to produce any portion of the resources. There is no
certainty that these Contingent Resources will be commercially
viable to produce any portion of the resources and it should be
noted that it is not certain that all fields / accumulations set
out above will progress to reserves.
The following classification of Contingent Resources are used in
this press release:
- Low Estimate (or 1C) means there is at least a 90 percent
probability (P90) that the quantities actually recovered will equal
or exceed the low estimate.
- Best Estimate (or 2C) means there is at least a 50 percent
probability (P50) that the quantities actually recovered will equal
or exceed the best estimate.
- High Estimate (or 3C) means there is at least a 10 percent
probability (P10) that the quantities actually recovered will equal
or exceed the high estimate.
The estimates of Contingent Resources provided in this press
release are estimates only and there is no guarantee that the
estimated Contingent Resources will be recovered. Actual Contingent
Resources may be greater than or less than the estimates provided
in this in this press release and the differences may be material.
There is no assurance that the forecast price and cost assumptions
applied by GLJ and RISC in evaluating InterOil's Contingent
Resources will be attained and variances could be material. There
is also uncertainty that it will be commercially viable to produce
any part of the Contingent Resources.
For a discussion of the Contingent Resources project evaluation
scenario, economics status and maturity subclass as well as the
change, timing and development of Contingent Resources evaluated
pursuant to the GLJ Elk-Antelope and Triceratops Report and the
RISC Raptor and Bobcat Report see Schedule A to InterOil's Annual
Information Form for the year ended December
31, 2015 which is available on www.interoil.com or from the
SEC at www.sec.gov or on SEDAR at www.sedar.com.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/interoil-drilling-update-and-2015-results-300243281.html
SOURCE InterOil Corporation