InterOil Corporation Wayne Andrews, Vice President of Capital Markets January 2011
InterOil Investment Highlights Resource estimate on Elk and Antelope fields 2009 YE Best Case estimate of 8.2 Tcf and 156.5 MMBC gross contingent resources Condensate stripping project JV with Mitsui FEED underway, FID in…
InterOil Has a 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…
InterOil Added 889 MMBOE of Contingent Resources in 2009 Case 1,600.0 Condensate * Sales Gas * 156.5 1,400.0 As at December 31, 2009 Low Best High 1,200.0 1,000.0 Original Gas-In-Place (tcf) 9.65 11.03 12.54 mmboe…
Antelope-2 Well Confirmed Lateral Extent of Dolomitization Vertical Antelope 2 Log Results: Antelope 1 Demonstrated a gas and gas liquids column height of 1,729 feet Confirmed reef development with porous Antelope 2 limestone and…
Well Productivity Exceeds Proposed LNG Startup Requirements 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…
InterOil Completed JVOA and Option Deed with Mitsui & Co. Ltd. On August 04, 2010, InterOil finalized a Joint Venture Operating Agreement (JVOA) for the Companys proposed Condensate Stripping Plant (CSP) with Mitsui & Co., Ltd.…
Unique and Attractive LNG Acceleration Opportunity InterOils Liquid Niugini Gas Ltd. (LNGL) and Energy World Corp. (EWC) signed a binding Heads Of Agreement (HOA) to build, a modular LNG plant designed for capacity up to 8 mtpa. The…
Project Benefits of Modular LNG No reinjection of gas required Accelerated liquid recovery Reinjection compressors eliminated Upstream No reinjection wells No reinjection pipelines Stepwise plant expansion of 0.5 mtpa Increments…
Recent Offering Positions InterOil to Achieve Condensate and LNG FID On November 10, 2010, InterOil closed a combined 280 million offering, including over-allotment options, generating net proceeds of 266 million. 2.8 million common…
Potential Full Scale Development Timeline 2011 2012 2013 2014 2015 2016 2017 Condensate Stripping Plant Up to 3 CSPs Mid-Size Land based LNG (3 mtpa) Up to 8 mtpa LNG Floating LNG (2-3 mtpa) Elk/Antelope & Condensate Stripping…
Attractive Economics Relative to Asia-Pacific LNG Projects Natural Gas Supply High productivity 300 Mmcf/d Antelope flow tests Tests indicate 5-6% CO2 InterOil tested 24-27 Bbls/MMcf of condensate in field tests Minimal pre-LNG…
Value Proposition of Liquid Niugini Gas in the Market Value proposition of Liquid Niugini Gas in the market measured on LNG Price necessary to yield 12% return (NPV12=0) 14.0 US13.6 /mmbtu - Long-Term LNG Price * 12.0 11.2…
LNG Off-take Principle The Upstream Partners collectively sell the LNG produced from the Elk/Antelope gas resource Financing Lower, and incremental, capital costs for modular LNG reduces dependence on off take agreements to…
Projected Project Cash Flow 3mtpa Start-up Case to 2020 3,000 12,000 2,500 Anticipated cash flow 10,000 3mtpa LNG plant and positive in 2014, 7500 bbls day generating 1.4 Condensate 100% Cummulative USm 2,000 billion per…
Projected Project Cash Flow Expansion Case to 2020 Over 24 billion in project cashflow in 10 years. InterOil expected share approximately Potential expansion to 8mtpa by 13 billion 2016 would significantly enhances cash flow…
Proposed Financing Structure Pipeline to Field CSP LNG Jetty Finance by InterOil Finance by Mitsui Coast Finance by EWC Finance by InterOil Financing TBD Wells Condensate Pipeline between Current estimate LNG Jetty pipeline…
World Class Hydrocarbon Province InterOils 3.9 Million Acres PPL237 PPL238 PPL236 Source: Papua New Guinea Department of Petroleum & Energy Page 19
2010 Upstream Achievements Increased Certified Resources Elk/Antelope fields with GLJ from 3.8 to 9.1 Tcf of Gas equivalents Enhanced the understanding of the Antelope reservoir 2 horizontal wells drilled from Antelope 2 well…
Surrounding Leads and Prospect Inventory to Fuel Long-Term Growth Page 21
InterOil Assets Located in a Cooperative Political Environment Former Australian Territory Gained Independence in 1975 Strong relations with Australia - A350 million annual aid Constitutional Monarchy Parliamentary Democracy, Member…
Near Term Operating Goals Reach early condensate and LNG FID and advance the development of liquid stripping and LNG plant to commercial operations by mid-year 2011 Secure spot and long-term LNG off-take agreement Complete sale of…
Strong Balance Sheet September 30, 2010 December 31, 2009 Cash, Cash Equivalents, Restricted Cash 66.8 75.8 Total Current Assets 237.4 208.1 Plant & Equipment, Oil & Gas Properties 464.5 393.5 Total Assets 729.8 631.8 Current…
Efficient Use of Capital Has Yielded a Valuable Asset Description of the Financing Event Pre-Money Month / Year of (Upstream and LNG Development Financing Event Amount Raised Company related only) Valuation Indirect Participation…
InterOil Has Created Value and Has Upside Potential InterOil is currently trading at approximately 0.63 per mcf IOC fully diluted market cap = 3.8B (50.1 MM shares 76.50) Best Case resource estimate YE-2009 = 9.1Tcfe Refinery and…
Appendix
Third Party Resource Estimate Elk and Antelope Structure Gross Resource Estimate for Gas and Condensate An evaluation of the potential resources of gas and condensate for As at December 31, 2009 Case the Elk/Antelope field has been…
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