Subject of much baseless attack (no doubt this has to do with the massive shorting and naked shorting in the stock), but meanwhile, the keeps performing better and better.

Here are the highlights:

• InterOil consolidated second quarter Earnings before Interest Taxes, Depreciation and Amortization (EBITDA), a non-GAAP measure, was a record $27.4(1) million and Net profit after tax was a record $15.6 million.
• On May 1, 2008 InterOil discovered a second major gas and condensate field whilst drilling Elk-4A.
• On May 5, converted $60.0 million of the expiring $130.0 million secured bridging facility into common shares, with the balance of $70.0 million repaid on May 12, 2008 with funds raised from the issuance of $95.0 million worth of 8% subordinated convertible debentures and,
• On June 1, 2008 we had a $6.5 million gain that was derived from the disposal of non-strategic oil and gas properties.
• “We are extremely pleased with these results, recording the best quarter ever in our short history with successful outcomes achieved in all business segments,” said Mr. Phil Mulacek, Chairman and Chief Executive Officer. “We are also encouraged by the exciting exploration results thus far obtained from the Elk/Antelope structure in Papua New Guinea.”
• (1) All dollar amounts are in United States dollars unless otherwise stated.
• Financial Highlights Quarter ended June 30, 2008:
• EBITDA was $27.4 million, an improvement of $21.8 million or 392% over same quarter of 2007. EBITDA of $10.2 million, $16.3 million and $7.9 million was achieved in the core Upstream, Midstream and Downstream business respectively.
• Net profit after tax was $15.6 million (per share basic $0.48), an improvement of $18.6 million over same quarter of 2007.
• Sales and operating revenues were $243.7 million, compared to $139.3 million for the same quarter of 2007.
• Total assets increased by 14.6% while total liabilities decreased by 7.2% from June 2007.

We can be pretty short with our comments. At today’s closing of $27, that would be a reasonable price for the shares based only on operations. But buying them, you get more:

1. Almost certain a couple of Tcf’s of natural gas, and very probably a lot more
2. 40+ drilling prospects in geology with two huge finds
3. A liquid stripping operation that might add a couple of hundred millions in profits a year
4. There are still pretty good prospects of finding an oil leg deeper in Antelope.

None of these are an absolute certainty (although few will doubt that they have enough gas to base an LNG facility on), but it seems a very good deal to us. We’ve argued it before..

And we might add, the refinery operates at half capacity only. The PNG economy keeps on growing pretty nicely, and there are two (possibly three) LNG construction plans, if even a single one of these actually enters construction phase, the capacity utilization problem of the refinery will be a thing of the past..