InterOil Corporation announced financial and operating results for the first quarter ended March 31, 2011.
First Quarter 2011 Highlights and Recent Developments
• On February 2, 2011, InterOil signed a Project Funding and Construction Agreement and Shareholder Agreement with Energy World Corporation Limited setting the framework parameters in respect of the development, construction, financing and operation of a planned 3 million tonne per annum (mtpa) land based modular LNG plant in the Gulf Province of Papua New Guinea.
• On March 22, 2011, InterOil announced the details of the independent engineering evaluation prepared by GLJ Petroleum Consultants Ltd., which evaluated the contingent resources at Elk and Antelope fields in Papua New Guinea effective as at December 31, 2010. The 2010 GLJ Petroleum Consultants report provides for a best case estimate of gross contingent resources of 8.59 trillion cubic feet of natural gas and 128.9 million barrels of condensate.
• On March 23, 2011 InterOi signed a non-binding memorandum with EWC to negotiate taking an ownership interest and establish an associated downstream gas sale, purchase, transmission and distribution services company. EWC has a permit to construct a LNG hub terminal and a 300 Megawatt combined cycle gas turbine power plant located in the Philippines.
• InterOil recorded a consolidated net profit for the quarter ended March 31, 2011 of $0.7 million. The operating segments of Corporate, Midstream Refining and Downstream collectively derived a net profit for the quarter of $21.2 million, while the development segments of Upstream and Midstream Liquefaction had a net loss of $20.5 million.
• Subsequent to the quarter end, on April 11, 2011, InterOil together with Pac LNG executed initial framework agreements with Samsung Heavy Industries and FLEX LNG Inc., conditional upon FLEX LNG shareholder approval and final investment decision (FID), relating to the construction and operation of a proposed 2 mtpa floating LNG processing vessel. Since the announcement, Flex LNG shareholders have approved the transaction.
InterOil Chief Executive Officer Phil Mulacek commented, “ In the first quarter, our operating businesses of refining, distribution and corporate generated the best profit in our history, delivering EBITDA of $40.6 million and net profit of $21.2 million. We continued prioritizing our exploration prospect inventory by acquiring $7.3 million of additional seismic data which was expensed in the current quarter. Management believes the preliminary results of the seismic data demonstrate high prospectivity for our acreage position, with 3 to 4 additional reef prospects. The Elk and Antelope fields are most important to us and our experienced management team is focused on delivering LNG results. We continue to work diligently with our LNG partners and look forward to completing a positive FID .”
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Source: InterOil, May 12, 2011;