InterOil certain of 2015 LNG shipment

Business, Main Stories

INTEROIL’S first liquefied natural gas shipment is expected to leave Papua New Guinea’s shores for the Asian market by 2015.
With a management team that has “major oil company” experience, an exponentially vast natural gas and oil resource and a balance sheet that is “the best” so far in the company’s short history, chief executive officer Phil Mulacek is quietly confident of meeting his targets.
He told investors and interested participants on his recent Morgan Stanley marketing trip that at the current rate of exploration, the company was set of meeting its forecast for first LNG shipment in 2015.
He said the company had drawn up a project agreement that was currently being looked at by the PNG Government.
He said they were hoping to strike a deal that was similar to the ExxonMobil-Oil Search deal and had engaged financial advisers to manage the sale of up to 35% of working interest in the Elk/Antelope resources, operations in the LNG plant and the LNG offtake agreements.
According to Mr Mulacek, the company has world class assets that are strategically located in a hydrocarbon hub on the doorstep of Asia.
He said tests carried out at its fields proved significant hydrocarbon resources with the company recording the highest gas flow tests in PNG.
He added that oil had also been recovered and evaluations were currently in progress.
Mr Mulacek also told his American audience that the company had recorded for the June quarter, “its best balance sheet” in the 12-year history of the company.
He said cash, cash equivalents and restricted cash of US$117.7 million (K315 million) were recorded for the quarter, US$62.5 million (K167.34 million) higher than the US$55.2 million (K147.79 million) recorded at the same time last year.
Mr Mulacek said the company also recorded total assets at US$662.4 million (K1.8 billion), US$66 million (K176.70 million) higher than the US$596.4 million (K1.6 billion) recorded at the same period and total liabilities at US$277.3 million (K742 million), US$137.3 million (K367.60 million) less than the US$404.6 million.