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InterOil Announces Q1 2016 Results

SINGAPORE and PORT MORESBY, Papua New Guinea, May 13, 2016 /PRNewswire/ --


  • Elk-Antelope appraisal to finish 2016, FEED 2017, construction 2018
  • Antelope-4, 5 and 6 appraisal complete; decision pending on Antelope-7
  • Credit facility increased to $400 million and extended to end of 2017
  • Provides funding flexibility beyond the certification process with Total

InterOil Corporation ("InterOil", NYSE: IOC; POMSoX: IOC) today updated its operations and financial results for the first quarter ending March 31, 2016.

PRL 15 Joint Venture Update

The PRL 15 joint venture, operated by Total SA of France, is nearing the final stages of the Elk-Antelope appraisal program. The Papua LNG project's basis of design work is expected to progress to front-end engineering and design work in 2017.

During a visit to Papua New Guinea in mid-April, Total indicated that the Papua LNG Project remained a top priority for the Company with construction planned to start in 2018, creating with it about 10,000 jobs.

InterOil Chief Executive Dr Michael Hession said: "We continue to make significant progress executing our strategy and advancing the development of the Elk-Antelope fields.

"InterOil is poised to benefit from development of the Papua LNG Project and to monetize InterOil's assets for the benefit of all InterOil shareholders."

Recent Antelope appraisal work encouraging

In early 2016, an extended well test of Antelope-5 flowed a total volume of 760 million standard cubic feet of gas (mmscf) over 14 days and then was shut-in for 16 days to record the subsequent pressure build-up. The well flowed at over 57 million standard cubic feet gas per day (mmcfpd) for the majority of test through two parallel 48/64" chokes.

Test results supported previous interpretations of excellent reservoir quality and well deliverability.

In addition connectivity between Antelope-5 and Antelope-1 was confirmed.

Significantly, no barrier, such as a western bounding fault, could be seen on the flow test.

Antelope-6 also provided structural control and reservoir definition on the field's eastern flank with the well encountering top reservoir within expectations at about 2,076 meters (6,811 feet) true vertical depth sub-sea (TVDSS).

The presence of about 42 meters (138 feet) of dolomite in the 138 meter (453 feet) reservoir section above the gas-water contact was positive, as was the multi-rate flow test over an interval from 2,076 to 2,142 meters (6,811 to 7,027 feet) TVDSS, which achieved a final stabilized flow rate of 13 mmcfpd over 24 hours through a 40/64" choke.

Gauges in Antelope-5 and Antelope-1 recorded pressure variations during the Antelope-6 flow test, which indicated strong connectivity between these two wells and Antelope-6, 2.5km away.

Strong connectivity is encouraging and supports a simpler and lower cost LNG development.

Antelope-6 reached a total depth of 2,462 meters (8,077 feet) TVDSS.

Site preparation continues at the proposed Antelope-7 well pad for a minimal regret cost.

This preparatory work will facilitate drilling as quickly as possible if the joint venture decides to drill Antelope-7.

The PRL 15 joint venture have held a technical workshop and have agreed to consider a decision on Antelope-7 this quarter. InterOil believes that an Antelope-7 appraisal could assist in identifying additional multi-Tcfe resources on the western flank of the Antelope field.

On completion of the appraisal program, two independent certifiers will take four to six months to determine the resource size. If the joint venture decides not to drill Antelope-7, the certification process would then be implemented with Antelope-6 being the last well in the appraisal program.

Financial summary

Summary of Consolidated Quarterly Financial Results -- Past Eight Quarters Financial Statements

Quarters ended ($ thousands except per share data)