Interoil recorded an EBITDAx (EBITDA adjusted for exploration expenses) of USD 16 million in Q1 2014 on operating revenues of USD 23 million. EBIT came in at USD 7 million while net profit amounted to USD 2 million. The results were affected by exploration expenses of USD 7 million and the reversal of a provision of USD 1,8 million, relating to the successful appeal of an environmental fine in Peru.
Working interest production after royalty fell by 5% on the previous quarter, to 2 932 boe, reflecting a 12% production decrease in Peru.
Interoil's main focus for 2014 is to realize the value potential of our Colombian operations. The 2014 development program for the Puli-C field was initiated during Q1, and we expect a production increase to be seen during Q2. We maintain our ambitions to increase production by 40% on 2013 and increase gross reserves by more than 5 million barrels. Going into 2015, through a gas re-injection program, we see potential to further increase the recovery factor of the Puli C field, that could significantly increase our reserve base.
We have completed the "fast-track" processing of the 3D seismic on the LLA-47 exploration license and remain optimistic on its value potential. The seismic imaging is of high quality and more than 10 opportunities have been identified. In a very conservative scenario, there are more than 100 million barrels of original oil in place (OOIP) and our expectation of a risked reserve potential of more than 30 million barrels is reinforced.
Detailed information on the operational and financial activities of Interoil is presented in Interoil's Q1 2014 Report and the Q1 2014 Presentation enclosed.
A Q1 2014 conference call will be held at Wednesday 28 May 2014 at 14:00 (Oslo-time).
Participants are asked to to dial in 5-10 minutes prior to the start time using the number/confirmation code below:
Confirmation Code: 6558956
Participants, Local - Oslo, Norway: +472350 0485
Participants, Local - New York, United States of America: +1646 254 3373
Participants, Local - London, United Kingdom: +44(0)20 3427 1929
Participants, National free phone - Colombia: 01800 915 7433
Participants dialling in from outside these countries may use the UK or US-number.
For more information please contact:
Thomas J. Fjell
Mob: +47 958 15 300
Mob: +47 488 94 426
Interoil Exploration and 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 and Colombia. Interoil currently employs approximately 235 people and is headquartered in Oslo.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.