29 August 2024
Highlights in the period
Interoil’s net production for the first six months of 2024 was 100,334 barrels of oil equivalent (boe), compared to 54,310 boe for the same period in 2023. Revenues were $7.9 million, compared to $3.4 million for the same period last year. These increases were primarily due to the acquisition of an additional 43% interest in the Santa Cruz, Argentina assets in June 2023.
EBITDA was $4.3 million in the first half of 2024, compared to $0.1 million in the same period of 2023.
In 2024, Interoil Argentina entered into a new commercial agreement with Compañia General de Combustibles (CGC), one of Argentina’s largest oil and gas companies, which operates the Loyola Port facilities near Interoil’s oil and gas fields. This new commercial agreement provides Interoil with an alternative and profitable location to deliver crude oil, minimizing freight costs and increasing prices by up to $10/barrel compared to previous destinations.
In Argentina, the decline in production was mainly due to the Santa Cruz fields, where the Patagonia region experienced severe winter conditions with temperatures as low as minus 20°C. These events blocked national roads and oilfield routes, and local authorities imposed roadblocks as a safety measure, making access to services and materials difficult for operations. Road obstructions and safety concerns forced the postponement of operations in some oilfields.
Subsequent events
In Colombia, the company is working with local communities around Puli C to seek their approval to launch a recovery campaign to recover at least 100 bpd of oil and 500,000 bpd of gas leaks.
In Argentina, extreme weather conditions persisted in July and August, delaying the recovery of production to previous levels. Currently, two out of three gas plants have resumed operations, while the evacuation of crude oil stored in oil tanks is being accelerated to make room for an increase in production.
As with the last two previous July interest payments, at the Company’s request, bondholders agreed to amendments to the terms of the bonds to settle the full July 2024 interest payment in kind through the issuance and delivery of additional bonds. This will allow the Company to focus its funds on necessary investments in its operations in Colombia and Argentina to restore production levels.
Interoil Colombia has reached an agreement with the ANH to terminate the LLA-47 contract, subject to the approval of the ANH Committee, the Company and the bondholders. This termination is partial, as it only affects the exploration activities, commitments and area, and Interoil Colombia will retain the Vikingo production well until the end of its economic life. The termination is based on the impossibility for Interoil to carry out exploration activities in the block due to popular opposition, and is to be carried out without any penalties or compensation to be paid by Interoil. The Company has requested written approval of the transaction from the bondholders of the Company’s bonds, which is currently pending.
For further details and the financial report, please see the attached report for the second quarter and first half of 2024.
For further questions please contact: [email protected] (mailto:[email protected])
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Interoil Exploration and Production ASA is a Norway-based exploration and production company listed on the Oslo Stock Exchange with a focus on Latin America. The company is the operator and licensee of several production and exploration assets in Colombia and Argentina with headquarters in Oslo.
This information is subject to the disclosure requirements under sections 5–12 of the Norwegian Securities Trading Act.
