InterOil (IOC) Higher After Entering HoA for Its PPL237 Petroleum Prospecting License

April 30, 2012 10:00 AM EDT
InterOil Corporation (NYSE: IOC) is moving higher Monday morning after reporting its signed a binding Heads of Agreement with Pacific Rubiales Energy whereby PRE can earn a 10.0% net (12.9% gross) participating interest in the PPL237 Petroleum Prospecting License onshore Papua New Guinea, including the Triceratops structure located within that license.

According to the release, "The transaction contemplates staged initial cash payments totaling US$116 million, an additional carry of a portion of the costs of an agreed exploration work program, and a final resource payment. PRE's gross participating interest is subject to the Government of Papua New Guinea's back-in rights provided for in relevant PNG legislation."

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