InterOil Raymond James Institutional Investor Conference, March 9, 2009 Elk-4 flared 6 May 2008 Elk-4 September 4, 2008 Antelope-1 March 2, 2009 Flowing 105 MMcfd, 1,890 BCPD Flowing 385 MMcfd, 5,000 BCPD Presented by Mr.…
InterOil Our History InterOil was formed in 1997 - integrated oil and gas company with operations in Papua New Guinea Refinery commenced 2004 BP distribution acquired 2004 Shell distribution acquired 2006 Discovered Elk 2006 LNG…
Our Vision is to Develop an Integrated Energy Company in Papua New Guinea Leverage exploration success for development of liquids monetization and LNG facility Be environmentally responsible Provide a quality working…
PNG at Heart of Largest LNG Market Source: BP Statistical Review 2008 5
Stable Govt Competitive Fiscal Policy Former Australian Territory Independence 1975 Strong relations with Australia - 350m PAPUA NEW GUINEA annual aid Constitutional Monarchy Parliamentary Democracy, Member of Commonwealth…
Business Segments through Value Chain Strategically Located and Positioned for Growth Midstream Portfolio - Refinery Exploration Portfolio K36bpd capacity Downstream 8.5 million acres Distribution 65% Market Share Proposed…
Downstream Distribution Largest distributor of fuel products in PNG Acquired BP and Shells PNG distribution assets Owned and operated by InterOil: Distribution depots Seaboard terminals Trucking system Retail network 8
Midstream Refining 36,000 bpd capacity oil refinery Excess capacity for in-country growth Supplies domestic market with balance available for export Refinery strategically located Government leased land 9
Upstream - Exploration Operate 4.0 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, namely; Elk/Antelope gas…
Proven PNG Hydrocarbon Systems P P'nyang 'nyang Juha Juha Hides H ides S Stan tanle ley y An Anggoore re Potential Recoverable P R L4 P R L5 K Keetu E tu Elevala levala M Moora rann Mananda Mananda 11…
Dominant Operated Acreage Position 12
PPL236, PPL237 and PPL238 Licence Extension Areas PPL238 8,433 km2 2,083,831 acres PPL237 3,238 km2 800,124 acres PPL236 4,502 km2 1,112,464 acres 0 50 100 miles 0 50 100 kilometers Relinquished Area Total Area…
Early Exploration Establishes Active Hydrocarbon System BP joint venture in 1959 tested 1,610 Bpd of light sweet crude oil and 8 MMcfd of natural gas from limestone at the Puri-1 discovery InterOil conducted extensive regional…
Seismic Confirms Multiple Structures 400+ Km Seismic Data Reduced risk Leading PNG carbonate knowledge Upgrade Gas Volume Estimates 15
The Elk-1 Well Discovery Elk structure was discovered in June 2006 (Elk-1 well) Elk-1 well penetrated 620 feet of brittle deep water limestone that is heavily fractured Of the total gross reservoir section drilled, 14 percent, or…
Elk-4 Appraisal Well Elk-4 was drilled to potentially test both the Elk and Antelope fault blocks. The well penetrated Antelope significantly down dip from the high point of the structure Elk-4 drilled 600 feet of gross reservoir,…
Elk/Antelope Gas Field - View to West 0.9 2.23 miles 1.75 miles miles 2.9 miles Elk Block Antelope Block 18
Antelope-1 Confirms Reef Development Antelope-1 encountered the limestone reservoir 1,595 feet higher than the Elk-4 well. Gas flowed to surface at 15 MMcfd during underbalanced drilling Mud logs indicate almost 100%…
Antelope-1 World Class Discovery Antelope DST1 and the well log confirm one of the largest hydrocarbon column heights encountered in a single vertical onshore wellbore in all of Asia at over 2,600 feet FMI log interpretation and…
Antelope-1, Elk-1 and Elk-4 Correlation Antelope-1 Elk-1 Elk-4 102 MMcfd & 5Bbls/MMcf 105 MMcfd & 18Bbls/MMcf 100m Antelope-1 Vs 100m Elk-1 Antelope-1 1750m-1850m Elk-1 1725m-1825m 22
Dolomite Cap at Antelope-1 Antelope-1 Antelope-1 1745m-1900 Core sample at 1799.5m Core sample at 1851m 23
Stacked Reef Development At Antelope-1 Antelope-1 Antelope-1 2,250m-2,400m Core sample at 1,928.5m Core sample at 2,400m 24
Antelope-1 Flow Rate Comparison Well Gross Net Percent Production Flow Test Reservoir Reservoir Pay Tubing OD Natural Gas Condensate Elk-1 620 Ft. 88 Ft 14% 5.5 inch 102 MMcfd 510 BCPD Elk-4 600 Ft. 166 Ft. 28% 4.5 inch 105 MMcfd…
Antelope-1 Well Schematic Note: Representative Depiction Not drawn to scale 26
Top Tier Oil Field Services In PNG 27
Antelope-1 Flow Test - March 2, 2009 28
Antelope-1 Flow Test - March 2, 2009 29
Antelope-1 Flow Test - March 2, 2009 Phil Mulacek InterOil CEO with Prime Minister of PNG Sir Michael Somare 30
Government Project Support Papua New Guinea Post-Courier March 3, 2009 it is now our turn to commit to clearing the path toward first production with our loyal and dependable partner, InterOil. Prime Minister Sir Michael Somare…
Papua New Guinea Carbonate Gas Field Column Height Comparison Carbonate Fields Gas Column Heights 3,000 2600 2,500 2,000 Feet 1,500 1,000 909 512 500 407 154 151 0 Elk/Antelope Pandora Bwata PASCA Uramu Kuru…
Papua New Guinea Gross Rock Volume (millions of cubic feet) Carbonate Fields Gross Rock Volume (millions of cubic feet) 1,200,000 1,039,240 1,000,000 Volume Feet3 800,000 600,000 556,489 415,301 400,000 200,000…
No Contribution From Lower Zones PLT log indicates almost 50% Schlumberger PLT Log of the flow is coming from above 1,780 meters and 100% is produced from 1,850 meters and above, representing less than 12% of reservoir. Production…
E&P Forward Plan Antelope-1 ST Targeting Liquid Hydrocarbons Antelope-1 Collect remaining pressure, flow & down hole gauge data Sidetrack well to test lower zones of interest Complete for production Antelope-2 Location…
Antelope-1 Sidetrack Sidetrack designed to test zones of interest in lower section of reservoir Original Hole Plan to drill and test each zone of interest on the way down with single packer GAS Lowest mechanical risk test,…
Proposed Antelope-1 Sidetrack DSTs Multiple DSTs planned on identified zones of interest Expect higher liquid content with depth Testing designed to confirm possible light oil zone DST 1 - test 2,295 to 2,355 meters for…
Antelope-2 Preparing For Drilling 38
Proposed LNG Project Strategy Deliver a fast track LNG project in PNG Create Value for PNG and the Project Investors: Early monetization of InterOils Elk/Antelope gas discovery Liquid gas (LPG) gathering opportunity and condensate…
Attractive LNG Economics Superior Quality Supply High deliverability, low cost, onshore supply. Rich in condensate and LPG Low in contaminates (CO2, H2S) Protected geographic region Near coast Focus Economics estimates that…
Developing World Scale LNG InterOil refinery Located on InterOil leasehold land adjoining Port Moresby harbor 42
The Whole Value Chain Elk Raptor Antelope Duck Bill LNG Plant Condensate/ LPG Domestic LPG Marketing Export Marketing and Shipping Commercial Boundary 43
Improved Balance Sheet* Sept 30, 2008 Dec 31, 2007 Cash, Cash Equivalents, Restricted Cash 78.4 65.9 Total Current Assets 361.0 216.8 Plant & Equipment, Oil & Gas Properties 344.5 317.7 Total Assets 708.8 537.8 Current Portion of…
In Summary Papua New Guinea is a world class under-discovered frontier Proving significant hydrocarbon resource and reserves High productivity wells, low cost structure 1st, 2nd and 3rd highest recorded gas flow tests in Papua New…
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