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Interoil strengthens balance sheet, converts debt to equity

Oslo, 26 June 2019 

Interoil Exploration and Production ASA (Interoil) has resolved to settle USD 1,009,112 of supplier debt by issuing 2,607,774 new shares at NOK 3.305 per share as payment to Fedmul S.A., a geology and geophysical specialist that has provided services to Interoil.

This transaction triggers under the purchase agreement of the Argentinian assets a further compensation to the sellers of such assets that were acquired by Interoil in April this year -which compensation accounts for the difference between the price of the new shares issued to Fedmul S.A. and the price of the shares of Interoil paid to the sellers of the Argentinian assets. Consequently 1,294,607 new shares will be issued to the sellers as such compensation.

Interoil has also negotiated an agreement by which Interoil will pay part of the pending debt and accrued interests from the acquisition. This amounts to a total of USD 2.35 million which will be settled with payment in 6,059,947 new shares. Following this the debt to the sellers’ is reduced to USD 1.3 million.

“The Board of Directors is pleased to have reached these agreements with Fedmul S.A. and the sellers of the Argentinian assets respectively. This allows Interoil to reduce its debt and strengthen its balance sheet”, says Hugo Quevedo, Chair of the Board.

The decision to issue the total of 9,962,328 new shares was made by the Board of Directors in line with the authorisation granted by shareholders at the Annual General Meeting on 28 June 2018. After the issuance of new shares, Interoil will have a total of 96,874,494 outstanding shares, of which the new shares represent 10.3%.

The price of the shares issued was calculated based on the 120-day weighted share price average up until 17 June 2019 with a 20 % discount.

The new shares issued to the sellers of assets in Argentina will be distributed with the same relative share as in the asset acquisition, as follows.

                                                                      New shares        New total   New share
Integra Oil and Gas S.A.                                 2,574,093       10,351,741           10.7 %
International Capital Markets Group Inc.          1,838,639        7,394,102             7.6 %
Mirage Partners Corp.                                     1,470,910        5,915,280              6.1%
Brie International Development Corp.                 735,456        2,957,641              3.1 %
Prifen S.A.                                                        735,456        2,957,641              3.1 %

Fedmul S.A.                                                    2,607,774       2,607,774             2.7%



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 the operator of several production and exploration assets in Colombia. Interoil currently employs approximately 50 people and is headquartered in Oslo.

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.

Interoil Main Office:
c/o Advokatfirmaet Schjødt AS
Ruseløkkveien 14
NO-0251 Oslo, Norway

Phone: (+47) 67 51 86 50
Fax: (+47) 67 51 86 60

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