Past year: ▲ 85%(26.13 – 50.92 USD)
Each one in plain English, with the numbers worked through for a shareholder.
11 Aug 2010debt financing● NeutralMajor
InterOil closed a $25m secured loan from Clarion Finanz AG at 10% interest, maturing 31 January 2011, for upstream development and general purposes. It pledged a 2.5% interest in the Elk and Antelope fields as collateral. The CFO said it helps maintain flexibility while seeking industry investors in the fields.
4 Aug 2010business combination▲ GoodMajor
InterOil and Mitsui signed the full joint venture agreement for the condensate stripping plant, replacing the April 2010 preliminary agreement. Each holds 50% (before the PNG State's right to take up to 22.5%), the plant is estimated at $550m, Mitsui is to arrange the financing, and a final investment decision is expected by end of March 2011. Mitsui also gets options, after the decision, to take up to 5% of the Elk and Antelope fields and of the LNG project on terms still to be set; if no decision is made, InterOil must refund Mitsui's spending and the options end. This continues the April deal but means a possible dilution of InterOil's field interest.
15 Apr 2010joint venture update▲ GoodMajor
InterOil signed agreements with Mitsui & Co. to jointly run and fund the preliminary engineering for a condensate stripping plant at Elk and Antelope, designed for 400 mmscf/day of gas and about 9,000 barrels of condensate a day. Each side bears half the preliminary costs, with Mitsui funding InterOil's share. If final investment is not reached, InterOil must refund the spending to date; the deal needs FEED, an EPC agreement and definitive agreements by 31 December 2010. This adds a condensate step alongside the LNG plan, and the company still states it has no reserves.
10 Dec 2009regulatory community update▲ GoodMajor
PNG's National Executive Council approved InterOil's project agreement for the LNG plant, which is expected to be signed before the end of 2009. The project targets a US$7.0bn two-train facility, with the PNG government nominee Petromin holding up to 22.5%. First LNG is planned for around end-2014 or early 2015, with a liquids stripping plant earlier, in late 2011/early 2012. These are company plans, and the release again states the company has no reserves.
3 Dec 2009well test result▲ GoodMajor
InterOil reported that Antelope-2 flowed at 705 million cubic feet of gas a day plus 11,200 barrels of condensate a day (129,000 barrels of oil equivalent a day), which the company calls a world record. It says the Antelope-2 and earlier wells confirm over 1.2 Bcf/d of productive capacity. The company says it has no reserves under Canadian rules, and updated third-party resource estimates are still to come.
16 Oct 2009business combination▼ Bad
PNG's competition authority refused to approve the purchase of the Port Moresby aviation fuelling business announced in July 2009, saying it could substantially lessen competition. InterOil said it will explore alternative structures to address the concerns, so the deal is blocked as filed.
22 July 2009business combination▲ Good
InterOil's downstream subsidiary contracted to buy Shell Oil Products (PNG) Limited, which owns aviation fuelling assets at Jackson International Airport in Port Moresby, for US$7.5m plus adjustments, funded from existing debt facilities. It is conditional on approval from PNG statutory authorities and extends the downstream expansion that began with the 2007 Shell purchase.
4 June 2009material agreement● NeutralMajor
InterOil agreed to sell 2,013,815 new shares to institutional investors at US$34.98 each, raising about US$70.4m gross. The money is earmarked for developing the Elk/Antelope fields, the proposed LNG facility, possible acquisitions, repaying up to US$9m of the Overseas Private Investment Corporation credit facility, and general purposes. Existing shareholders are diluted by the new shares.
2 Mar 2009business combination● NeutralMajor
InterOil settled all claims with Merrill Lynch over the LNG plant joint venture and took over Merrill Lynch's interest in it. InterOil issued 652,931 common shares and owes a post-closing balancing payment, while Pacific LNG also made cash and stock payments to Merrill Lynch. Merrill Lynch keeps no ownership in the project, and this ends the dispute behind the earlier Merrill Lynch agreement on the LNG project.
20 Jan 2009listing compliance notice● Neutral
InterOil said it would voluntarily delist its shares from the Toronto Stock Exchange at the end of 27 January 2009, to cut the administrative complexity of multiple listings. The shares stay listed on NYSE Alternext (formerly the American Stock Exchange) and the Port Moresby exchange, so the main US trading venue is unchanged.
19 May 2008regulatory community update▲ GoodMajor
InterOil filed its 2007 annual report. It states three goals: better refinery and downstream profitability, establishing gas reserves, and developing a PNG LNG project. It reports an agreement with Merrill Lynch and Pacific LNG Operations on the LNG project, the Shell PNG downstream purchase closed in 2007, and the Elk-2 test as not a commercial success. It also says the Elk-4 well spudded 15 November 2007 and had just flowed gas and condensate from the Antelope limestone as the report went to press, with testing to follow.
