InterOil Corporation Annual General Meeting June 2011 Wayne Andrews Vice President Capital Markets
InterOil Investment Highlights Resource estimate on Elk and Antelope fields 2010 YE Best Case estimate of 8.6 Tcf of gas and 128.9 MMbbls of condensate gross contingent resources Proposed Condensate stripping project JV with Mitsui…
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…
Third Party Resource Estimate Elk and Antelope Structure Gross Contingent Resource Estimate for Gas and Condensate As at December 31, 2010 Case An evaluation of the potential Low Best High resources of gas and condensate for Initial…
InterOil Has Created Value and Has Upside Potential InterOil is currently trading at less than 0.50 per mcf IOC enterprise value 2.5 B (Equity 2.4 B + Debt-Ex WC 0.1 B as of March 31, 2011) Refinery and downstream value 0.5 B…
InterOils 1 Priority is Achieving Gulf LNG Project Start Up InterOil is moving ahead with government sanctioning and approval of the fully integrated project development Development plan and integrated timetable presented to the…
InterOils 1 Priority is Achieving Gulf LNG Project Start Up Wharf at Herd (CSP location) under construction: Land improvement Readying site for Rig 3 deployment Lowers risk and contractor bid prices 15 million in savings…
InterOils 1 Priority is Achieving Gulf LNG Project Start Up Laydown area at Napa Napa is prepared to receive Gulf LNG project equipment Benefits to the state and project development include: Land improvement Increasing local…
Significant Investment in Critical Infrastructure Ordering up to 100 million of: Condensate Line Pipe Processed gas Line Pipe Critical long lead infrastructure Purchased 11.3 million in Construction Equipment: Dump…
Project Update and Future Milestones InterOil is moving ahead with all Project activities to reach FID LNG facilities increase from 2mtpa to 5mtpa with Samsung & Flex LNG CSP facilities design are being re-engineered and expanded…
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 vessel (2 mtpa) Page 12
InterOil Gulf LNG Development Map Development Map Upstream Gas Project Petroleum Development Licence Elk and Antelope Fields PDL Elk Antelope fields, 8.59tcf Recoverable Sales Gas, 129MMbbls Condensate (2C resource) 7 to 9 wells…
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 a maximum rate of 24-27 Bbls/MMcf of condensate Minimal pre-LNG…
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…
InterOil Gulf LNG Project Financing Upstream Gas Project Mid-Stream LNG Project Land Floating Pipeline Export Field CSP Based LNG Finance by Finance by to Coast Terminal InterOil Mitsui Financing Finance by LNG Finance by…
Projected Start Up Case Cash Flow for next 10 Years to 2020 Equity Cashflow - Start-Up Case 3,500 17,500 3,000 15,000 USD (m) Cumulative 2,500 1.2 to 1,3 12,500 billion a 2,000 Sunk Costs year 10,000 USD (m) Repaid…
Projected Expansion Case Cash Flow for next 10 Years to 2020 Equity Cashflow - Expansion Case 3,500 17,500 3,000 2.5 to 2.9 15,000 USD (m) Cumulative billion a 2,500 year 12,500 2,000 10,000 USD (m) 1,500 7,500…
Long-Term LNG Off-Take Agreements Ahead of Industry Standards LNG contracts are very complex Defined performance guarantees for Buyer and Seller Significant time, resources, financial commitment from both Buyer and Seller Buyers do…
Comparison of LNG Project Timelines 2003 200 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 PA 4 FID FG EG LNG Total project span 42 months - Cost 1.2b(3.7mt) or 324 per mt PA FID FG InterOil Total project span 54 - 60…
World Class Hydrocarbon Province InterOils 3.9 Million Acres Page 21
Surrounding Leads and Prospect Inventory to Fuel Long-Term Growth Page 22
2010/2011 Seismic Program Highlights After our success at Antelope a primary focus for the 2010-11 seismic campaign has been exploration for analogous reefal build ups The program has been successful with identification of four…
Triceratops Gas Field Porosity Model and Preliminary Volumetrics The Bwata gas field was discovered in 1959 in the NW of what is now PPL 237. InterOil is currently acquiring the Bwata Phase 3 program with an additional 50 km (31…
Triceratops-2 Location Estimated 1500 Feet Higher than Previous Gas Test Triceratops-2 (Proposed) Bwata-1 Triceratops-2 top of limestone estimated 1500 ft. higher 512 ft Gas column Penetrated in Bwata-1 well Elk-4…
Near Term Upstream Goals The primary near term directive of the exploration group is to mature a prospect inventory for a continuous multi-well exploration program. This will be achieved by meeting the following goals: Complete…
Near Term Corporate Operating Goals Completion of FEED work to accommodate the proposed larger 5 mtpa LNG project while planning for additional cost-effective phased expansion Reach CSP and LNG FIDs and advance the development of…
Strong Balance Sheet March 31, 2011 December 31, 2010 Cash, Cash Equivalents, Restricted Cash 274.5 280.9 Total Current Assets 506.8 453.5 Plant & Equipment, Oil & Gas Properties 506.4 484.6 Total Assets 1,033.5 965.5 Current…
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