The average production in December 2011, compared to the average production in November 2011, was:
Production* December 2011 November 2011
Peru 4'064 3'794
Colombia 1'843 1'762
Total 5'907 5'556
*The production is average daily oil production (bopd) and is working interest before royalty.
The increase in production is primarily caused by successful work-over in Peru and new well set in production in Colombia during December.
The fourth well in the Colombian drilling campaign was set in production mid December and produce today 100 bopd, which is 50% below budget. InterOil has decided to postpone the fifth well in the 2011 drilling campaign.
Oil has been sold at average sales price of USD 106.17 in Peru and USD 93.86 in Colombia per barrel during December. To reduce the inventory level and have flexibility InterOil Colombia has agreed with a new alternative buyer of the oil since mid November. The transportation cost to the alternative buyer is somewhat higher.
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InterOil Exploration & Production ASA is a Norwegian based exploration and production company - listed on the Oslo Stock Exchange - with focus on Latin-America. The company is operator of several production and exploration assets in Peru, Colombia and Ghana. InterOil currently employs approximately 250 people and is headquartered in Oslo.