Positive results spur InterOil exploration

INTEROIL has announced positive fourth quarter results for 2014, with the Papua New Guinea-focused energy company posting a $US289.8 million ($A380.53 million) full year profit and $715 million liquidity, according to a release today.
Positive results spur InterOil exploration Positive results spur InterOil exploration Positive results spur InterOil exploration Positive results spur InterOil exploration Positive results spur InterOil exploration

The result was helped by the sale of shares in PRL 15 to Elk-Antelope operator Total E&P PNG and the sale of the company's downstream business to Puma Energy.

It still retains 36.54% interest in PRL 15 and, under the sales and purchase agreement with Total, the company is entitled to additional resource certification and milestone payments as the project grows.

"We implemented structural changes in 2014, which allowed us to run our business more efficiently while building a strong foundation for growth," InterOil CEO Michael Hession said.

"These changes included establishing a new management team, renewing our board, strengthening our balance sheet and streamlining our operations.

"Independent analysis suggests Elk-Antelope is the most competitive new-build LNG project globally, with the potential for superior returns even at low commodity prices.

"We are well placed with liquidity of $715 million and an anticipated certification payment to meet our commitments and pursue the LNG project timetable."

He added the company was able to focus on developing Elk-Antelope and maintaining its Eastern Papuan Basin exploration program. The results of the latter have netted InterOil five discoveries where drilling is set to commence.

"We have had five consecutive discoveries in the Eastern Papuan Basin where we hold a premier license position," Hession said.

"We are now planning five wells outside of Elk-Antelope to target about 17 trillion cubic feet equivalent (Tcfe) of gross contingent and prospective resource, 8 Tcfe of which could be targeted by appraisal wells at Bobcat, Raptor and Triceratops-3, plus 9 Tcfe by exploration wells at Antelope-South and Wahoo."


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