07-17-2012, 11:22 AM
I would like to highlight some of the points made on the Presentation made at the AGM on June 15th.
http://www.interoil.com/presentation/201...inal-1.pdf
Chart 3
Achievements Since 2011 Annual General Meeting
Profitable annual results
Recorded an annual profit for the 2011 year of $17.7 million
Strengthened Balance sheet to over $1 billion in assets
Refined product sales volumes increased by 8%
Pacific Rubiales investment
Signed a binding Heads of Agreement with Pacific Rubiales Energy on a 10.0% net participating interest in the PPL237
Staged initial cash payments totaling US$116 million
Carry of an additional 25% of the expenditures associated with exploration and delineation activities and a final resource payment
Sell Down Process Nearing Completion
Working with a short list of qualified bidders
Advancing binding agreements on conforming bids
All Bids accretive to shareholders, top bids at a multiple to share value
Discovered another significant resource at Triceratops
DST #9 flowed at 28 mmcfd from the top 750 feet of the estimated 2,200 feet of reservoir
Triceratops-2 delineation well test results established the Triceratops structure as a significant discovery in PNG
Currently setting casing to test possible liquid hydrocarbons in lower 1450 feet of reservoir
Next exploration prospects are ready to drill
Completed seismic data acquisition and interpretation on three additional reef targets
Drilling locations identified for exploration wells in PPL 236 and PPL 238
Chart 5
LNG Partnering and Elk and Antelope Sell Down Process Nearing Completion
Working with a short list of qualified bidders
All bidders capable of satisfying the 2009 LNG project agreement
Financing and other requirements for closure include:
Funding for purchase of interest in E/A
Funding and approvals for development plan
Off-take commitments
Board Approvals
Advisors improving competitive bids
Significant interest in InterOil’s LNG project by internationally recognized LNG partners
Competitive tension maximizes the value of the resource to all stakeholders
Bids values today are multiples higher than first offers
Advancing binding agreements on conforming bids
Require detailed binding agreements
Multi-Billion dollar arrangements with significant upfront payments
The ideal balance to maximize IOC shareholder value is a sale of 25% to 32.5%
Minimal preconditions and PNG government acknowledgement
Bids accretive to shareholders
Minimum bid price under discussion is substantially accretive to the implied current market value of the company’s certified resources
Upper range is multiple times higher than the current valuation
Management’s highest priority
Completing a transaction and achieving final investment decision (FID) as soon as possible
PNG government acknowledgement is required and should be a priority after the election
Chart 16
PRL 15 Commitment Wells
InterOil plans to move both rigs to PRL 15
Rig #2 to drill Antelope-3
Rig #3 to drill Elk-3
Well locations to reduce resource risk
Shift C3 and C2 resource to C2 and C1
Onshore, near coast (75 Km)
Chart 26
The Acquisition of the PPL236 and PPL238 strike lines are complete
Both lines appear to confirm four way dip closure.
The Wahoo Build up is large approximately 7.5 to 8 km in strike length and preliminary mapping suggest the Wahoo/Mako trend may have a structural closure of approximately 18,039 acres(73 sq. Kilometres).
Chart 35
Near term corporate goals:
Maintain positive EBITDA from our operating businesses and have a positive year end financial outcome
Complete Triceratops #2 and file a PRL for Triceratops Development
Continue LNG pre-investment to drive the development timeline and reduce EPC contractor and Strategic LNG Partner bid risks
IOC LNG Activities
Our sell down and partnering process has now reached a stage where we expect to be able to demonstrate to the DPE, in the coming weeks, our ability to abide by all of the terms of the 2009 LNG Project Agreement.
This accords with our stated intention since the previously announced engagement of advisors for this process at the end of last year.
The best outcome for our shareholders is balanced gas monitization stragey, represented by a sale of 25% to 32.5% of the Elk and Antelope fields to a recognized LNG partner
InterOil, and the partner we select, intends to bring an LNG processing facility to Papua New Guinea of a nature and in a manner which will be satisfactory to the State.
http://www.interoil.com/presentation/201...inal-1.pdf
Chart 3
Achievements Since 2011 Annual General Meeting
Profitable annual results
Recorded an annual profit for the 2011 year of $17.7 million
Strengthened Balance sheet to over $1 billion in assets
Refined product sales volumes increased by 8%
Pacific Rubiales investment
Signed a binding Heads of Agreement with Pacific Rubiales Energy on a 10.0% net participating interest in the PPL237
Staged initial cash payments totaling US$116 million
Carry of an additional 25% of the expenditures associated with exploration and delineation activities and a final resource payment
Sell Down Process Nearing Completion
Working with a short list of qualified bidders
Advancing binding agreements on conforming bids
All Bids accretive to shareholders, top bids at a multiple to share value
Discovered another significant resource at Triceratops
DST #9 flowed at 28 mmcfd from the top 750 feet of the estimated 2,200 feet of reservoir
Triceratops-2 delineation well test results established the Triceratops structure as a significant discovery in PNG
Currently setting casing to test possible liquid hydrocarbons in lower 1450 feet of reservoir
Next exploration prospects are ready to drill
Completed seismic data acquisition and interpretation on three additional reef targets
Drilling locations identified for exploration wells in PPL 236 and PPL 238
Chart 5
LNG Partnering and Elk and Antelope Sell Down Process Nearing Completion
Working with a short list of qualified bidders
All bidders capable of satisfying the 2009 LNG project agreement
Financing and other requirements for closure include:
Funding for purchase of interest in E/A
Funding and approvals for development plan
Off-take commitments
Board Approvals
Advisors improving competitive bids
Significant interest in InterOil’s LNG project by internationally recognized LNG partners
Competitive tension maximizes the value of the resource to all stakeholders
Bids values today are multiples higher than first offers
Advancing binding agreements on conforming bids
Require detailed binding agreements
Multi-Billion dollar arrangements with significant upfront payments
The ideal balance to maximize IOC shareholder value is a sale of 25% to 32.5%
Minimal preconditions and PNG government acknowledgement
Bids accretive to shareholders
Minimum bid price under discussion is substantially accretive to the implied current market value of the company’s certified resources
Upper range is multiple times higher than the current valuation
Management’s highest priority
Completing a transaction and achieving final investment decision (FID) as soon as possible
PNG government acknowledgement is required and should be a priority after the election
Chart 16
PRL 15 Commitment Wells
InterOil plans to move both rigs to PRL 15
Rig #2 to drill Antelope-3
Rig #3 to drill Elk-3
Well locations to reduce resource risk
Shift C3 and C2 resource to C2 and C1
Onshore, near coast (75 Km)
Chart 26
The Acquisition of the PPL236 and PPL238 strike lines are complete
Both lines appear to confirm four way dip closure.
The Wahoo Build up is large approximately 7.5 to 8 km in strike length and preliminary mapping suggest the Wahoo/Mako trend may have a structural closure of approximately 18,039 acres(73 sq. Kilometres).
Chart 35
Near term corporate goals:
Maintain positive EBITDA from our operating businesses and have a positive year end financial outcome
Complete Triceratops #2 and file a PRL for Triceratops Development
Continue LNG pre-investment to drive the development timeline and reduce EPC contractor and Strategic LNG Partner bid risks
IOC LNG Activities
Our sell down and partnering process has now reached a stage where we expect to be able to demonstrate to the DPE, in the coming weeks, our ability to abide by all of the terms of the 2009 LNG Project Agreement.
This accords with our stated intention since the previously announced engagement of advisors for this process at the end of last year.
The best outcome for our shareholders is balanced gas monitization stragey, represented by a sale of 25% to 32.5% of the Elk and Antelope fields to a recognized LNG partner
InterOil, and the partner we select, intends to bring an LNG processing facility to Papua New Guinea of a nature and in a manner which will be satisfactory to the State.