InterOil 4Q Profit at USD 18.5 Mln (PNG)

InterOil Corporation announced financial and operating results for the fourth quarter and full year ended December 31, 2012.

Year End 2012 Highlights and Recent Developments

• During the year, InterOil drilled both the Triceratops-2 and Antelope-3 wells to total depth and completed initial logging and testing. The Triceratops-2 well established the Triceratops field as the third significant discovery to date on the Company’s licenses in Papua New Guinea. The Antelope-3 well results compare favourably with the Antelope-1 and Antelope-2 wells. The GLJ Report, prepared by independent qualified reserves evaluator, effective as of December 31, 2012, indicated a 10% increase to 10.3 trillion cubic feet of gas equivalents (Tcfe) in the gross contingent best case resource estimate on licenses in PNG compared to the 2011 year-end estimate of GLJ of 9.4 Tcfe.
• On November 16, 2012, InterOil was notified by the Prime Minister of Papua New Guinea Hon. Peter O’Neill that the National Executive Committee had conditionally approved LNG development project in the Gulf Province. This decision clears the way for InterOil to complete the LNG partnering process and proceed with plans for the development of an LNG plant in the Gulf Province with initial planned output of a minimum of 3.8 million tonnes per annum.
• Net profit for the quarter ended December 31, 2012 was $18.5 million, which contributed to achievement of an annual net profit for the year ended December 31, 2012 of $1.6 million. Comparative profit for the annual period in 2011 was a net profit of $17.7 million. The operating segments of Corporate, Midstream Refining and Downstream collectively returned a net profit for the year of $61.2 million. The development segments of Upstream and Midstream Liquefaction yielded a net loss of $59.6 million.
• Subsequent to year end, on January 24, 2013, InterOil announced that they have advised parties with which the company has been in discussions that the final binding bid solicitation period for the LNG partnering process currently being undertaken will close on February 28, 2013. Board of Directors intends to meet advisors during March 2013 for the purpose of evaluating bids received and selecting InterOil’s partner(s) for the development of the LNG Project utilizing gas from the Elk and Antelope fields.

Phil E. Mulacek, InterOil Corporation Chief Executive Officer, commented, “The recent approval of our 3.8 mtpa LNG project in the Gulf Province by the National Executive Council of PNG paves the way to completing our LNG partnering process, including a sell down of our interest in the Elk and Antelope fields. The success of our delineation drilling at Triceratops and Antelope has positively impacted our 2012 year-end resource estimate. Our prospect inventory is maturing and we anticipate that it will support our goal of a multi-year, multi-well exploration program. I am pleased to confirm that the fifth annual resource evaluation of the Elk and Antelope fields, and our first estimate at the Triceratops field, continues to support our development plans. We look forward to progressing commercialization of these resources. We believe that these achievements, combined with a successful completion of our LNG partnering process, support our continued growth and operational success.”

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LNG World News Staff, February 28, 2013; Image: InterOil