InterOil To Increase Interest In Triceratops And Raptor

Pacific Exploration & Production Corporation to withdraw from Papua New Guinea

InterOil Corporation will increase its interest in two key licenses following the withdrawal of Pacific Exploration & Production Corporation (“Pacific”) from Papua New Guinea.

The withdrawal of Pacific, formerly Pacific Rubiales Energy Corp., is consistent with its strategy of focusing on Latin America.

As a consequence of Pacific’s withdrawal, InterOil will increase its interest in PRL 39, which contains the Triceratops discovery, and also in PPL 475, which contains the Raptor discovery.

InterOil Chief Executive Dr Michael Hession thanked Pacific for its support as a joint venture partner and for its investment in the discovery and appraisal of resources in Papua New Guinea.

“We are pleased we will now own more than 78% of the Triceratops and Raptor discoveries,” he said.

“Pacific’s withdrawal simplifies license ownership for any commercialization discussions with other strategic players.”

Triceratops, PRL 39
Pacific’s right to withdraw from PRL 39 is in line with its July 2012 farm-in agreement in which Pacific acquired a 12.9032% gross interest in PRL 39 from InterOil and minority interest holders.

On completion of Pacific’s withdrawal, InterOil’s gross interest in PRL 39 will increase from 87.0968%# to 100%# and its gross interest in the Triceratops discovery will increase from 69.0931% to 78.1114%.

Raptor, PPL 475
With Pacific’s withdrawal from PPL 475, formerly PPL 237, InterOil’s gross interest will increase from 87.0968%# to 100%# and its interest in Raptor will increase from 66.2082% to 79.1114%.

The 2012 farm-in agreement made certain provisions for Pacific to withdraw from the two licenses, including the right to receive a repayment of approximately US$96M from the net cash proceeds of the commercial sale of petroleum recovered or produced from PRL 15. The repayment of US$96M is to be made within six years from the date of withdrawal, with contributions of US$66M from InterOil and US$30M from minority interests. This amount has been previously disclosed in InterOil’s financial statements under non-current liabilities and receivables.

About InterOil Corporation
InterOil Corporation is an independent oil and gas business with a sole focus on Papua New Guinea. InterOil’s assets include one of Asia’s largest undeveloped gas fields, Elk-Antelope, in the Gulf Province, and exploration licenses covering about 16,000sqkm. Its main offices are in Singapore and Port Moresby.