InterOil Corporation IPAA Oil & Gas Investment Symposium Wayne Andrews - V. P. Capital Markets January 20, 2010
InterOil Investment Highlights Proven world class hydrocarbon province 40 identified exploration prospects 80% of Eastern Papuan basin Certified resource estimate on Elk/Antelope field 2008 YE Best Case estimate of 3.8 Tcfe gross…
InterOil Track Record of Achievement With Investment Upside InterOil was formed in 1997 - Vision to create an integrated energy company Exploration licenses signed under incentive program 2003 Elk-1 discovery of Elk fault block 2006…
Partnership With a Stable Government Former Australian Territory Gained Independence in 1975 Strong relations with Australia - A350 million annual aid Constitutional Monarchy Parliamentary Democracy, Member of Commonwealth Positive…
Business Segments Across The Value Chain Exploration Portfolio Midstream Portfolio - Refinery Downstream Domestic 3.9 million acres K36bpd capacity Distribution Proposed Condensate Stripping Project Proposed Midstream LNG…
Upstream - Exploration Operate 3.9 million acre onshore exploration license Assets secured at a time when Papua New Guinea was overlooked and under-explored Significant new discovery in frontier basin Elk/Antelope gas field…
World Class Hydrocarbon Province - InterOil Acreage Position Potential Recoverable Potential Recoverable 25 Tcf 11 Tcf PPL238 PPL237 PPL236 Source: Papua New Guinea Department of Petroleum & Energy 9
Elk/Antelope Field - View to West Elk-4 Elk-2 Antelope-1 Elk-1 Antelope-2 Antelope-3 1.6 1.7 0.9 2.9 miles miles miles miles 10
Antelope-1 and 2 Confirmed Reef Development Composite Line E4IOL05 and E12IOL07 11200 12000 12800 13600 14400 15200 16000 16800 17600 18400 19200 20000 E4IOL05 E12IOL07 Elk-4 Ant-1 Ant-3 Ant-4 Ant-2 0 0 -400 -400 -800…
Antelope-2 Well Drilling Antelope-2 is located 2.3 miles south of Antelope-1 Currently drilling lower reservoir section Primary objectives: 1) Penetrate southern margin of the Antelope Reef 2) Determine the extent of the…
Antelope Well Correlation Initial Antelope-2 Log Results: Demonstrated a gas and gas Antelope-1 liquids column over the entire logged vertical interval of 1,224 feet, from 6,004 feet to 7,228 feet Antelope-2 Confirmation of the…
Antelope-2 Flow Test Sets New World Record INTEROILS ANTELOPE-2 WELL FLOWED AT A RATE OF 705 MMCFD INCLUDING 11,200 BBLS PER DAY OF CONDENSATE We believe the well results establish Papua New Guinea as a world class gas resource…
Antelope-2 Flow Test December 1, 2009 15
Elk/Antelope Wells - Flow Rate Comparison Flow Test Natural Gross Net Percent Production Well Gas Reservoir Reservoir Pay Tubing OD Condensate 102 MMcfd Elk-1 620 Ft. 88 Ft. 14% 5.5 inch 510 BCPD 105 MMcfd Elk-4 600 Ft. 166…
Favorable Structural Position to Test Potential Oil Leg Elk-1 Elk-4 Antelope-1 Antelope-2 Elk-2 Reef Porosity Potential Oil Leg Antelope Fault Antelope Platform Note: Pictorial Only, Graphic Not to Scale 17
Antelope-2 DST2 Results 18 5/8 248mMD Drill Stem Test (DST) 2 flowed at a stabilized rate of approximately 11 MMcfd on a 48/64 inch choke and the condensate-to-gas ratio (CGR) averaged 20.7 barrels per million cubic feet of natural…
Antelope-2 Further Drilling and Testing Objectives 1. Incrementally drill, core and DST where appropriate through lower reservoir zones of interest. 2. Test and delineate transition zone into potential oil column. 3. Test and…
Capitalize On Exploration Opportunity Confluence of Factors Generates Favorable Timing Lull in industry activity - rig availability High quality equipment at distressed prices Best Balance Sheet in Companys History Debt-to-total…
Elk/Antelope Field Seismic Coverage 21
Elk/Antelope Field and Surrounding Areas 22
Condensate Recovery Feasibility Study EDG Consulting Engineers were commissioned to evaluate early monetization of condensate from the Elk/Antelope field Completed feasibility study with defined product slate, a cost estimate and…
LNG Project Strategy Current activities and objectives: Deliver a fast track LNG project in PNG Project Agreement approved by PNG Government in December 2009 Competitive economics compared with other Pacific Rim LNG projects…
PNG at Heart of Largest LNG Market Source: BP Statistical Review 2009 25
Attractive LNG Economics Superior Quality Supply High deliverability, low cost supply Rich in condensate and LPG Low in contaminates (CO2, H2S) Protected geographic region Onshore, near coast InterOil exploration wells are…
The Whole Value Chain Refinery LNG Plant Power Plant Exploration & Development Hydrocarbon Sales LPG Export Oil, Natural Gas and Condensate Production Separation and Transportation Commercial Consumption…
Joint Ventures in LNG & Upstream Development Joint Ventures: Key Drivers of Success What part of the value chain Balance and Timing for JV Success Entire value chain Individual business segments Business segment combinations Owners…
Proposed Condensate and Natural Gas Production Profile1 MMBOE Forecast Elk / Antelope Production Profile 90 75 60 45 30 15 0 2011 2013 2015 2017 2019 2021 2023 Oil / Liquids Gas Natural gas production volumes assume first…
Developing World Scale LNG Project InterOil refinery Located on InterOil leasehold land adjoining Port Moresby harbor 33
Profitable Refining Segment with Existing Spare Capacity 36,500 bpd capacity oil refinery Excess capacity for in-country growth Supplies domestic market with balance available for export Refinery strategically located government…
Profitable Distribution with Domestic and Export Growth Potential Largest distributor of fuel products in PNG Strategic acquisitions to leverage InterOils niche refinery Owned and operated by InterOil: Distribution depots Seaboard…
Best Balance Sheet* in Companys History September 30, 2009 September 30, 2008 Cash, Cash Equivalents, Restricted Cash 88.6 78.4 Total Current Assets 247.0 361.0 Plant & Equipment, Oil & Gas Properties 412.0 344.6 Total Assets 674.5…
Operating Priorities for 2010 Continue development of the Elk/Antelope field Prioritize prospect inventory with additional seismic data acquisition Of course, our overarching goal remains Test the commerciality of the potential to…
In Summary Papua New Guinea is an under-discovered frontier with world class assets strategically located on the doorstep of Asia, where InterOil has targeted over 1 Billion BOE Proving significant hydrocarbon resource for a stronger…
Loading...
