InterOil is hedging 834 bopd out of total production in 2008, reduced to 600 bopd in 2009
(Lysaker, April 22nd 2008) With reference to the article in Dagens Næringsliv April 22nd, InterOil Exploration & Production ASA emphasises that the company's hedging program includes only approximately 15 per cent of the current production. The hedging program is disclosed in the company's quarterly and annual reports, and expires in 2009.
- Hedging programs are integrated parts of the development of exploration and production companies. InterOil entered into the financial hedging contract in December 2006 to increase the borrowing base by USD 15 million. The borrowing base has been invested in Peru and Colombia and has contributed to additional production by more than 40 % since the end of 2006, says Nils N. Trulsvik, chief executive officer of InterOil Exploration & Production.
The hedging contract is split in two and is related to bopd 834 in 2008 and 600 bopd in 2009. In one contract the company pays the difference between the WTI oil price and USD 55 to USD 90.50. In the other contract the company pays the difference between WTI and USD 75.50, with no cash settlements below USD 75.50. For further information regarding the hedging contracts, please see the full disclosure in Note 20, page 52, in our annual report 2007.
For more information please contact:
Fredrik von Zernichow
Investor Relation Manager
Tel: +47 67518661
Mob: +47 99273843
Fax: +47 6751 8660
InterOil Exploration & Production ASA is a Norwegian based exploration and production company - listed on the Oslo Stock Exchange - with focus on Latin-America and West-Africa. The company is operator of several production and exploration assets in Peru and Colombia, and is an active license partner in Angola and Ghana. InterOil currently employs approximately 200 people and is headquartered in Oslo.