InterOil ENERCOM Oil & Services Conference, February 18-19, 2009 Elk-4 flared 6 May 2008 Elk-4 September 4, 2008 Antelope-1 December 31, 2008 Flowed 105 MMcfd being flared Presented by Mr. Phil Mulacek, Chairman & CEO,…
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…
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 6
Midstream Refining 36,000 bpd capacity oil refinery Excess capacity for in-country growth Supplies 100% domestic market with balance available for export Refinery strategically located Government leased land 7
Upstream - Exploration Operate 8.5 million acre onshore exploration license Assets secured at a time that Papua New Guinea was an overlooked and under-explored Significant new discovery in frontier basin, namely; Elk/Antelope gas…
Proven PNG Hydrocarbon Systems P P'nyang 'nyang 66 66 6 6 Juha Juha 66 H Hides ides S Sta tannle leyy An Anggoore re Potential Recoverable P R L4 P R L5 K 2 Keetu E tu Elevala levala M Moora rann Mananda…
Exploration Assets 10
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 Reduced risk Leading PNG carbonate knowledge Upgrade the Gas Volumes 12
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 El Elk Block k fa u lt Antelope Block 15
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 2,300 feet FMI log interpretation and…
Antelope-1, Elk-1 and Elk-4 Correlation Antelope-1 Elk-1 Elk-4 100m Antelope-1 Vs 100m Elk-1 Antelope-1 1750m-1850m Elk-1 1725m-1825m 19
Antelope-1 Well Log 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 5 Bbls/MMcf Elk-4 600 Ft. 166 Ft. 28% 4.5 inch 105 MMcfd…
Dolomite Cap at Antelope-1 Antelope-1 Antelope-1 1745m-1900 Core sample at 1799.5m Core sample at 1851m 21
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 22
Papua New Guinea Carbonate Gas Field Column Height Comparison Carbonate Fields Gas Column Heights 2,500 2,041 2,000 1,500 Feet 1,000 909 512 500 407 154 151 0 Elk/Antelope Pandora Bwata PASCA Uramu Kuru Carbonate…
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…
Exploration and Production Forward Plan Antelope-1 Final flow test Complete for production Antelope-2 Location construction underway Targeting spud following rig move from Antelope-1 Expand Seismic Coverage Infield seismic at…
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 gathering opportunity and condensate stripping…
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 29
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 30
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 and 2nd highest recorded gas flow tests in Papua New…
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