Oslo, 29 January 2015: Interoil Exploration and Production ASA's Colombian subsidiary ("Interoil") has provided the National Agency of Hydrocarbons in Colombia (Agencia Nacional de Hidrocarburos or ANH) with the required guarantee of USD 7.2 million without posting cash collateral. Interoil is now in full compliance with the terms of the LLA-47 license.
As reported in the press release dated 10 October 2014, Interoil has received notice from ANH informing that it is considering to terminate the LLA-47 license, unless the necessary bank guarantees are provided for its existing exploration commitments on the block.
Interoil has now provided ANH with the required guarantee for LLA-47. Interoil was able to obtain this guarantee without posting cash collateral. Interoil is therefore compliant with the license terms for LLA-47.
An additional USD 10.5 million in guarantee for LLA-47 is required by the end of April 2015. Interoil is working with a number of banks and expects that the guarantee will be in place in due time.
In relation to the Cor-6 license terms, Interoil is still in discussions with ANH regarding the technical aspects of the block, and is working to find a solution satisfactory to both parties.
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 Colombia. Interoil currently employs approximately 95 people and is headquartered in Oslo.