InterOil Reports 2010 Results (Australia)
InterOil Corporation announced financial and operating results for the fourth quarter and full year ended December 31, 2010.
Fourth Quarter 2010 Highlights and Recent Developments
* On November 10, 2010, InterOil completed public offerings of 2.8 million common shares at US$75 per share and US$70 million aggregate principal amount of 2.75% Convertible Senior Notes due 2015. InterOil has received total combined net proceeds from the offerings of approximately $266 million, after deducting underwriting discounts, commissions and estimated offering expenses. InterOil closed 2010 with cash, cash equivalents and restricted cash totalling $280.9 million.
* During the fourth quarter, the seismic program focused on further delineation of the Bwata and Wolverine structures on Petroleum Prospecting License (PPL) 237. At the end of the 2010, the seismic program for PPL 236 was well advanced. The PPL 236 seismic program totals 70 kilometers comprising 6 dip lines which transect the Whale, Tuna, Barracuda, Wahoo, Mako and Shark leads.
* InterOil recorded a consolidated net loss for the year ended December 31, 2010 of $45.5 million. The operating segments returned a net profit of $41.4 million. This was offset by $12.0 million settlement of litigation, investments in development, including $30.6 million expensed for buyback of indirect participation interests (IPI), $8.7 million expensed seismic activity, $8.4 million expensed liquefied natural gas (LNG) project costs, and $8.3 million expensed for rig maintenance.
* Subsequent to the quarter, InterOil announced a Project Funding and Construction Agreement and a Shareholder Agreement with Energy World Corporation Ltd. setting forth the parameters in respect of the development, construction, financing and operation of a planned three million tonne per annum (mtpa) land-based modular LNG facility in the Gulf Province of Papua New Guinea.
InterOil Chief Executive Officer Phil Mulacek commented, “We continue to advance our effort to monetize our resources. We believe that our delineation drilling and the resultant annual resource estimate further demonstrates the value of our reservoirs at Elk and Antelope. Our partners, Mitsui & Co., Ltd. and Energy World Corporation, Ltd. continue to progress our project toward a final investment decisions with respect to our planned condensate stripping and LNG facilities, respectively. These achievements, combined with our strong balance sheet, support our continued growth and operational success.”
Source: InterOil, March 23, 2011;