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Highlights in the quarter
Gross production increased by 23.6 % in Q1 2020 compared with the same period of
last year, partly as a result of increased gas production in the Puli C field
thanks to the work over campaign and start of oil production in Argentina.
Interoil’s EBITDAx in Q1 2020 was USD 0.9 million, compared with a USD 0.9 in Q4
2019 and USD 1.4 in Q1 2019. Variation is related to a lower production, due to
Mana and Vikingo natural decline and lower oil prices and the impact of assets
impairment in Q4 2019.
During the past months, Interoil successfully restructured and strengthened its
balance sheet through conversion of bonds, approved by the General Meeting in
January 2020. On December 30th 2019, the bondholder’s approved the proposal for
debt to equity conversion and maturity extension. As a result, and after the
shareholders’ approval to the terms of the transaction on January 16th, 35% of
the outstanding bonds were converted into equity.
The new shares will not be traded in the market until a listing prospectus has
been filed. The company regrets to inform that due to the covid-19 pandemic, the
publication of such prospectus has been delayed. It is currently expected to be
published by late July - mid-August.
Maturity of the remaining bonds has been extended 6 years until January 2026 and
an interest rate was fixed at 7.5% p.a.
In January 2020, Interoil acquired an 8.34 % participating interest in five
exploitation concessions in the Santa Cruz region in Argentina. Interoil shall
serve as operator of the concessions upon Government’s approval to its capacity
as operator.
On March 12, 2020, the President of Argentina declared by Decree 260/20 the
sanitary emergency for a term of one year. Several further regulations have
provided for a quarantine and social isolation that seriously limited social and
economic activities.
On March 17, 2020, the President of Colombia issued Decree 417/20 acknowledging
the oil price crisis and the impact of the Covid-19 pandemic and declaring the
economic, social and ecological emergency in Colombia.
From March 2020, Interoil ceased to provide services for the operation and
maintenance of the Toqui-Toqui field.
Subsequent events
On April 3 2020 Interoil received a notification from Turgas, our sole gas off-
taker for the Mana and Ambrosia fields, that excess pressure was building in
some points of main trunk line and that as a result, the access valve for our
gas has been closed until pressure returns to safe levels. This forced Interoil
to shut in all producing wells in those fields, affecting not only gas but also
oil production.
On April 7, 2020, the ANH issued Agreement 002/2020 (Acuerdo 002/2020) setting
forth a framework of measures aimed at mitigating the impact of the emergency on
companies with contracts with the ANH, including the extension of terms for
exploration activities and the transfer of commitments between contracts with
the ANH, among others. The Company applied for an extension of terms of 12
months both for Altair and LLA-47. The ANH granted to the Company the extension
requested for Altair. The request made for LLA-47 is at present under analysis
and pending a resolution.
On May 5 2020, Turgas notified Interoil that it would resume gas off-takings and
Interoil restarted its deliveries accordingly.
On May 5 2020, Interoil decided to temporarily close production at Vikingo as it
was not economically viable with the prevailing oil price.
On May 26 2020, the Company has agreed on a new credit line facility worth USD
1.8 million and with a term of 19 months.
For more information, please see attached Q1 2020 interim report.
?Please direct further questions to ir@interoil.no (mailto:ir@interoil.no)
Interoil Exploration and Production ASA is a Norwegian based exploration and
production company - listed on the Oslo Stock Exchange with focus on Latin
America and Argentina. The company is operator of several production and
exploration assets in Colombia and Argentina. 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
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