(Oslo, 20 August 2012) Interoil E&P ASA recorded an EBITDA of USD 14 million on operating revenues of USD 28 million in Q2 2012. Positively influenced by net gains of USD 14 million on the oil hedge contracts, the company recorded a profit before tax of USD 17 million for the quarter.
Interoil's production in Q2 2012 decreased by 16% compared to prior quarter. This was driven by the relinquishments of the Toqui-Touqui and the Puli B licenses in Colombia end of February 2012. Interoil drilled three wells in Peru and one exploration well in Colombia, and although all wells discovered oil, the initial results are below expectations.
Interoil had net financial income of USD 12.2 million in the second quarter of 2012. Income related to oil hedge contracts accounted for USD 14.0 million, of which realized losses amounted to USD 4.2 million and the unrealized gain was USD 18.2 million. Interest expenses amounted to USD 2.6 million, while the realized/unrealized exchange rate gain was USD 2.1 million.
Total comprehensive income for the second quarter was USD 14.9 million after income tax of USD 1.7 million compared to a net income of USD 19.4 million in the same quarter prior year. On a year to date basis the net income is USD 18.4 million after income tax of USD 4.7 million compared to net loss of USD 3.6 million after income tax of USD 9.8 million in prior year.
In June, The First Civil Court of Talara in Peru approved an injunction in favour of Interoil Peru SA stating that the term of licenses related to Block III expires January 26, 2016 and Block IV October 4, 2014. Interoil Peru continues to pursue a long term license extension of Block III and IV and remains optimistic on reaching a positive outcome. The injunction was a positive development, as it gives the company more time to secure a long term solution.
In Colombia, Interoil will complete several workover projects during Q3. In addition, preparations to fulfil Interoil's obligations towards ANH on the farmed out licenses continue.
Detailed information on the operational and financial activities of Interoil is presented in Interoil's Q2 2012 report enclosed.
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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 280 people and is headquartered in Oslo.