Friday, September 18, 2009

InterOil increases investment in Gulf Province gas fields

PORT MORESBY, FRI SEPT 18: INTEROIL Corporation has moved to increase investment in its Elk Antelope gas exploration fields in the Gulf Province.

The company has announced two separate transactions aimed at giving it a greater control over and share of the LNG project.

In the first transaction the company has agreed to acquire indirect participation interests currently held by a number of external investors.

This will involve InterOil acquiring a total of 4.3364% participation in Elk Antelope in exchange for the issuing of  common shares to the value of approximately $US 56-million.

The deal will also cover any future discoveries made as a result of four exploration wells still to be drilled.

In the other transaction, InterOil has sold a 2.5% direct working interest in gas and condensate discovered at Elk Antelope to Pacific LNG Operations Limited a foundation joint venturer in InterOil’s LNG Project.

InterOil will receive $US25-million for the deal and also acquire 2.5% of Pacific LNG’s economic interest in the joint venture (LNG) project.

When finalised, the two transactions will see InterOil with a 73.6614% direct interest in its exploration licences for the Elk Antelope fields.

This figure excludes the interests of the state of Papua New Guinea.

Also, InterOil has announced that its Antelope reservoir may be higher than first thought.

Latest drilling has intersected the top of the reservoir at 6,007 metres, which is 105 metres higher than pre-drill estimates.

InterOil CEO Mr. Phil Mulacek said the company was pleased to have made the discovery.

“We believe it could result in a meaningful increase in our internal gas resource estimates”, he said


For further information contact


Susuve Laumaea

Senior Manager Media Relations

InterOil Corporation

Ph: (675) 311 2796

Mobile: (675) 7201 3870 / (675) (7) 684 5168


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