InterOil Corporation - Investor Presentation Raymond James 29th Annual Institutional Investors Conference Orlando, Fl March 2-5, 2008 Presenter Mr. Phil E. Mulacek Chairman and Chief Executive Officer, InterOil 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…
Our Vision is to Develop an Integrated Energy Company in Papua New Guinea Identify niche market opportunities for financial return Be environmentally responsible Provide a quality working environment Add value to the…
Assets through Value Chain Strategic Assets Positioned for Exponential Growth Exploration & Refining and Marketing 32,500 Distribution 70% Development 33,280 bbls/day nameplate capacity Market Share net sq miles 5
Strategic Investment in LNG InterOil has a proven track record InterOil built a refinery in a remote location Closed a 30-year Project Agreement with the Government of Papua New Guinea Identified PNG as a strategic opportunity at…
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…
Upstream Exploration On trend exploration licenses covering over 9 million acres Two new Oil & Gas systems Two sandstones - Subu and Pale Three limestones - Puri, Mendi and Reef Currently drilling a multi-well program Elk-4…
Proven Petroleum System Basin is defined by regional lineaments and faults Multiple hydrocarbon sources - still generating Jurassic, Cretaceous and Tertiary Multiple reservoirs Charged Tertiary limestone with dual porosity system…
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…
Multiple Structures and Seismic Triceratops Bwata Reduced risk Elk Best knowledge to date Mule Deer Upgrade Resource Antelope Raptor Big Horn Duck Bill 12
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 13
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-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 15
Midstream Liquefaction, Refining and Marketing 32,500 bpd name plate capacity hydro-skimming oil refinery Supplies 100% domestic market with balance available for export Development of a future world scale onshore liquefied…
Downstream Distribution Segment 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…
Developing World Scale LNG InterOil refinery Located on InterOil leased land adjoining Port Moresby harbor targeting 2012 19
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…
The Whole Value Chain Elk Raptor Antelope le Duck Bill Sa s Ga l ra tu Na LNG Plant Condensate/ LPG Domestic LPG Marketing Export Marketing and Shipping Commercial Boundary 21
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 total…
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…
World-Class Project Team LNG Execution team has 250 years Oil and Gas experience, with 100 years specific LNG experience and growing InterOil involvement with a track record of meeting commitments in PNG Access through Merrill…
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 25
Myths and Facts Myths: Majors Required: World-scale LNG projects require major oil company to develop. Reserves: Must have 20 years gas supply as P1 reserves to start LNG project. Facts: Majors vs. Juniors: InterOil a non-Major, is…
Speed to Market Creates LNG 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…
Our LNG Road Forward Gas Appraisal and Exploration Activities Continue the enhanced appraisal of the gas resources for the LNG project Drill the Antelope structure targeting the main reef porosity zone Pursue Farm-in and…
In Summary Targeting significant boe resource and reserve additions in 2008 We have world class assets strategically located in a hydrocarbon hub on the doorstep of Asia InterOil has significant exploration and appraisal…
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