Pacific LNG Ltd., an affiliate of Clarion Finanz AG, in a vote of confidence in its partner, and immediately following the announcement of the Joint Venture Operating Agreement with Mitsui & Co. Ltd, has advanced US$25 million to InterOil Corp.
Henry Aldorf, President of Pacific LNG and former President of Marathon International and V.P. Global Upstream Business Development Of Marathon Inc., was quoted as saying “We are pleased to provide additional capital to InterOil in order to accelerate its upstream operations and pre-invest with our partner Mitsui to advance the Condensate Stripping Project (CSP). Additionally, the company is drilling its second horizontal at Antelope-2.
“The horizontal well is targeting a higher condensate-to-gas ratio deeper in the reservoir, which can only enhance an already high rate of return project and add resources to the year-end 2009 estimate of 9.1 Tcfe.
“InterOil’s second rig has arrived and is on the ground at the refinery area in
The term loan facility matures on January 31, 2011 and will be used for upstream development and general corporate expenses.
InterOil has agreed to pledge to Clarion Finanz a 2.5% interest in Elk and Antelope fields as collateral for the facility. Collin Vissagio, Chief Financial Officer of InterOil commented: “We are pleased to have obtained this facility from Clarion Finanz. It allows us to maintain financial flexibility while seeking potential industry investors in the Elk and Antelope fields.”
InterOil intends to use the proceeds from the facility to further develop the Elk and Antelope fields in advance of the proposed development of the longer term condensate stripping and liquefied natural gas projects.