SINGAPORE and PORT MORESBY, Papua New Guinea, May 13, 2016 /PRNewswire/ --
Highlights
- Elk-Antelope appraisal to finish 2016, FEED 2017, construction
2018
- Antelope-4, 5 and 6 appraisal complete; decision pending on
Antelope-7
- Credit facility increased to $400
million and extended to end of 2017
- Provides funding flexibility beyond the certification process
with Total
InterOil Corporation ("InterOil", NYSE: IOC; POMSoX: IOC) today
updated its operations and financial results for the first quarter
ending March 31, 2016.
PRL 15 Joint Venture Update
The PRL 15 joint venture, operated by Total SA of France, is nearing the final stages of the
Elk-Antelope appraisal program. The Papua LNG project's basis of
design work is expected to progress to front-end engineering and
design work in 2017.
During a visit to Papua New
Guinea in mid-April, Total indicated that the Papua LNG
Project remained a top priority for the Company with construction
planned to start in 2018, creating with it about 10,000
jobs.
InterOil Chief Executive Dr Michael
Hession said: "We continue to make significant progress
executing our strategy and advancing the development of the
Elk-Antelope fields.
"InterOil is poised to benefit from development of the Papua LNG
Project and to monetize InterOil's assets for the benefit of all
InterOil shareholders."
Recent Antelope appraisal work encouraging
In early 2016, an extended well test of Antelope-5 flowed
a total volume of 760 million standard cubic feet of gas (mmscf)
over 14 days and then was shut-in for 16 days to record the
subsequent pressure build-up. The well flowed at over 57 million
standard cubic feet gas per day (mmcfpd) for the majority of test
through two parallel 48/64" chokes.
Test results supported previous interpretations of excellent
reservoir quality and well deliverability.
In addition connectivity between Antelope-5 and Antelope-1 was
confirmed.
Significantly, no barrier, such as a western bounding fault,
could be seen on the flow test.
Antelope-6 also provided structural control and reservoir
definition on the field's eastern flank with the well encountering
top reservoir within expectations at about 2,076 meters (6,811
feet) true vertical depth sub-sea (TVDSS).
The presence of about 42 meters (138 feet) of dolomite in the
138 meter (453 feet) reservoir section above the gas-water contact
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 mmcfpd over 24 hours through a
40/64" choke.
Gauges in Antelope-5 and Antelope-1 recorded pressure variations
during the Antelope-6 flow test, which indicated strong
connectivity between these two wells and Antelope-6, 2.5km
away.
Strong connectivity is encouraging and supports a simpler and
lower cost LNG development.
Antelope-6 reached a total depth of 2,462 meters (8,077 feet)
TVDSS.
Site preparation continues at the proposed Antelope-7
well pad for a minimal regret cost.
This preparatory work will facilitate drilling as quickly as
possible if the joint venture decides to drill Antelope-7.
The PRL 15 joint venture have held a technical workshop and have
agreed to consider a decision on Antelope-7 this quarter. InterOil
believes that an Antelope-7 appraisal could assist in identifying
additional multi-Tcfe resources on the western flank of the
Antelope field.
On completion of the appraisal program, two independent
certifiers will take four to six months to determine the resource
size. If the joint venture decides not to drill Antelope-7, the
certification process would then be implemented with Antelope-6
being the last well in the appraisal program.
Financial summary
Summary of Consolidated Quarterly Financial Results -- Past
Eight Quarters Financial Statements
Quarters ended
($ thousands except per share data)
|
2016
|
2015
|
2014
|
Mar-31
|
Dec-31
|
Sep-30
|
Jun-30
|
Mar-31
|
Dec-31
|
Sep-30
|
Jun-30
|
Total
revenues
|
921
|
11,690
|
11,822
|
(13,643)
|
13,215
|
(13,182)
|
10,749
|
13,689
|
EBITDA
(1)
|
(14,575)
|
(81,543)
|
(101,838)
|
(30,583)
|
(20,317)
|
(60,443)
|
(12,133)
|
(10,253)
|
Net
(loss)/profit
|
(16,978)
|
(83,830)
|
(103,725)
|
(32,531)
|
(21,869)
|
(64,205)
|
(16,930)
|
52,265
|
From continuing
operations
|
(16,978)
|
(83,830)
|
(103,725)
|
(32,531)
|
(21,869)
|
(62,474)
|
(14,622)
|
(15,765)
|
From discontinued
operations
|
-
|
-
|
-
|
-
|
-
|
(1,731)
|
(2,308)
|
68,030
|
Basic
(loss)/earnings per share
|
(0.34)
|
(1.69)
|
(0.29)
|
(0.66)
|
(0.44)
|
(1.30)
|
(0.34)
|
1.05
|
From continuing
operations
|
(0.34)
|
(1.69)
|
(0.29)
|
(0.66)
|
(0.44)
|
(1.26)
|
(0.29)
|
(0.31)
|
From discontinued
operations
|
-
|
-
|
-
|
-
|
-
|
(0.04)
|
(0.05)
|
1.36
|
Diluted
(loss)/earnings per share
|
(0.34)
|
(1.69)
|
(2.09)
|
(0.66)
|
(0.44)
|
(1.30)
|
(0.34)
|
1.05
|
From continuing
operations
|
(0.34)
|
(1.69)
|
(2.09)
|
(0.66)
|
(0.44)
|
(1.26)
|
(0.29)
|
(0.31)
|
From discontinued
operations
|
-
|
-
|
-
|
-
|
-
|
(0.04)
|
(0.05)
|
1.36
|
|
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 quarter ended March 31, 2016 on
www.interoil.com .
|
InterOil recorded a net loss of $17
million for the quarter ending March
2016, compared to a net loss of $21.9
million for the previous corresponding period ending
March 2015.
During the quarter, administrative and general expenses
increased by $3.9 million, mainly due
to the restructuring of operations and corporate functions.
These increases were partly offset by a $16 million decrease in exploration costs as a
result of lower exploration seismic activities in the first quarter
of 2016, as well as a $5.1 million
decrease in finance costs.
As previously announced subsequent to the end of the quarter,
InterOil increased its credit facility from $300 million to $400
million and extended the maturity date of the facility to
the end of 2017. This proactive step has increased InterOil's
financial flexibility to be funded beyond the Elk-Antelope
certification process with Total SA.
At the end of the March quarter, InterOil's pro-forma liquidity
was $253 million.
As previously advised, InterOil reduced its expected 2016
expenditure guidance to a range of $155
million to $170 million, with most spending focused on the
Papua LNG Project.
If Antelope-7 is drilled, InterOil expects to contribute its
36.5% share of the gross well costs. This net cost would be an
addition to the 2016 budget estimate.
Conference call information
A conference call will be held on May 13,
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) 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 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
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
|
United
States
|
Ann Lee
Communications
Specialist
|
James Golden/ Aaron
Palash
Joele Frank,
Wilkinson Brimmer Katcher
|
T: +65 6507
0222
E:
ann.lee@interoil.com
|
T: +1 212 355
4449
E:
ioc-jf@joelefrank.com
|
Forward Looking Statements
This 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 Corporation expects, believes
or anticipates will or may occur in the future are forward-looking
statements, including in particular information and statements
relating to resources, hydrocarbon volumes, well test results, the
estimated timing of the LNG project, the timing and quantum of the
certification payment, the costs and break-even prices and
potential revenues of the LNG project, the estimated drilling times
of the exploration or appraisal wells and estimated 2016 budgets
and expenditures. 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
("SEC") 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 release
and the fact that this 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 and not
necessarily indicative of long-term performance or of ultimate
recovery. Well log interpretations indicating gas accumulations are
not necessarily indicative of future production or ultimate
recovery.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/interoil-announces-q1-2016-results-300268258.html
SOURCE InterOil Corporation