13th Asia Upstream 2008 Creating Opportunity in Papua New Guinea Gerry Gilbert, GM E&P 1
InterOil an Integrated Oil & Gas Co. Formed in 1997 - integrated oil and gas company with operations in Papua New Guinea InterOil is listed on three exchanges: US (AMEX:IOC) 9 Daily volume 708,000 (90 day traded average) Canada…
InterOil Corporation Integrated Oil & Gas Company Focused in Papua New Guinea Exploration & Development Refining and Marketing Distribution 33,280 net square kms 32,500 bbl/day capacity 70% Market Share 3
InterOil Licenses 4
Petroleum System Introduction 1. All elements of Petroleum System present within InterOil exploration licences 2. Basins defined by regional lineaments/faults 3. Multiple hydrocarbon sources: Jurassic, Cretaceous and Tertiary 4.…
Eastern Papuan Basin Events Chart Plioc Jurassic Neocomian Barrem Aptian Albian Campanian Maast Palaeoc Eocene Oligoc. Miocene Erosion and/or non-deposition Rock Unit Family A Family B Tertiary (lacustrine) oils Jurassic oils…
Gravity Generated Leads (Proved New PNG Process) H Pio - Fa k ult oc H Blo Bl ck ult Fa re Au H 9
Elk-1 Discovery Well 2006 First well drilled with InterOil owned heliportable rig 10
Elk-1 Discovery June 2006 DST Max Flow Rate: 21.7 MMscfd 60/64 in choke, WHFP-1200psi, WHSIP-3160psi, BHSIP-3580psi 1690m CAOF 2.85 Bcfd 11
Elk-1 PNG Record Breaking Gas Flow 5 inch Completion Flow Rate 102 MMscfd WHFP 1,990 psi WHSIP 3,160 psi 12
Elk-2 Porosity/Fracture Summary Fracture Density World-Scale Carbonate Reservoir Properties 2,345m Projected GWC from DST pressures Net/Gross = 17m/88m Avg net = 5.2% kh = 4 md-ft 2,675m HKW from well tests Net/Gross =…
Elk Seismic Coverage Reduced risk Best knowledge to date Upgrade Resource 14
Top Limestone Structure 1700 m 2300 m 15
Elk-4 and Antelope-1 Locations Elk-1 Elk-4 Antelope-1 16
Elk/Antelope Analogue to Uramu/Mira Reef Uramu-1 Mira-1 98-188-109 Uramu Reef Platform Antelope-1 Elk-4 Elk-1 Elk/Antelope InterOil Line E2IOL05 17
Elk-4 Status - Drilling Ahead Elk-4 Status Currently preparing to set casing Drilled to 6,557 feet (1,999 meters) Expect TD early March Geologically on trend Target Tertiary Limestones TD - 2,500 meters 18
Proven PNG Gas Systems P P'nyang 'nyang 66 66 6 6 Juha Juha 66 H Hides ides S Sta tannle leyy An Anggoore re P R L4 P R L5 K Potential Recoverable Keetu tu Mananda Mananda 2 E Elevala levala M Moora rann 11…
LNG Project Location and Scope 9 - 10 MMtpa LNG Plant + Compressor Station LPG export Elk Kopi Pipeline to Napa Napa (358 km) Napa Napa Napa Napa Jetty Upgrade Project Investment US5 - 7 billion 22
LNG Project Strategy Deliver a fast track LNG project in PNG to meet first cargo by 2012 Create Value for PNG and the Project Investors: Early monetization of InterOils Elk/Antelope gas discovery Liquid gas gathering…
LNG Project Benefits Focus Economics estimates that by 2020, the LNG project may contribute 15-20% of PNGs annual GDP At its peak of production, the LNG project could contribute US1.2 billion directly to PNGs annual GDP A…
Projected LNG Project Ownership Oil & Gas End Use (1-2) Merrill Lynch Pacific LNG InterOil Strategic Strategic (33.33%) (33.33%) (33.33%) Partner Partner PNG LNG Inc. (Bahamas) PNG Govt. and Major Shareholder Land owners…
Merrill Lynch Underpins LNG Offtake Merrill Lynch is the third largest Investment Bank in the world ML trade 8 Bcfd in US and Europe, equivalent to 60 MMtpa LNG ML will be the exclusive offtaker of LNG ML will organize and…
Speed to Market Creates Value Fiscal Terms Land Step by Step = Lower Equity Risk = Lower Speed Gas Supply FEED Gas Offtake EPC Conventional Approach FID Construction 0 1 2 3 4 5 6 7 8 9 10 Years Fiscal Terms Land Fast track…
Proposed LNG Plant Site . LNG Plant adjacent to InterOil refinery 28
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