All around the world small exploration companies are being decimated on credit freeze and energy prices falling of a cliff. While the same has happened to InterOil (IOC) shares, it seems to be alive and kicking.
We already noted the really bullish implications yesterday from the legal battle with Merrill Lynch. Two parties fighting over the output of a yet to be build expensive LNG facility, that was quite good news.
Today, as if there is no credit crisis, InterOil has arranged a $57.5m working capital finance from local banks. Wild swings in oil prices could result in rather big demands on working capital, but as this moves show, they have little problems in getting substantial funds. Another sign the company engenders trust in those that know it’s business.
InterOil Announces $57.5 Million Working Capital Loan Facility With Banks in Papua New Guinea
Friday October 24, 7:00 am ET
- TORONTO, ONTARIO–(MARKET WIRE)–Oct 24, 2008 — InterOil Corporation (Toronto:IOL.TO – News)(AMEX:IOC – News)(POMSoX:IOC), today announced that it has secured a 150 million Kina (US$57.5 million) revolving working capital facility for its wholesale and retail petroleum products distribution business in Papua New Guinea from two of that country’s leading financial institutions, Bank of South Pacific Limited and Westpac Bank PNG Limited.
- “We are pleased to have established this facility which will provide increased security for our working capital requirements and evidences the strong relationships and presence maintained by InterOil in Papua New Guinea,” stated Mr. Collin Visaggio, Chief Financial Officer.