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Report for the third quarter of 2022

November 29, 2022 10:45 AM EST

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Oslo, 29 November 2022

Main events in the period

In July 2022 the Company successfully closed its share offering. The final number of shares that were subscribed and issued in the Share Issue is 14,357,554 at a subscription price of NOK 1.30 per share, resulting in gross proceeds of approximately NOK 18.7 million.

Gross production in Q3 2022 increased 1.7% compared with the Q2 of 2022.

The oil prices for Q3 2022 decreased from the previous quarter and were in the range of USD 82-90/barrel, but the company cost management practices allowed it to keep up the level of the earnings before interest, tax, depreciation and amortisation (EBITDA).

The Colombian exploitation field operation was normal, and production has been in line with per forecasted for this quarter. However other activities continued to be affected by social opposition which substantiated the request for additional extensions of contract terms.

In August 2022 the Colombian Agencia Nacional de Hidrocarburos (ANH) granted an extension of the LLA-47 exploration license related to the self-isolation conditions imposed by native communities during the first semester of 2022.  As a result, the new expiration date for the LLA47 exploration license has been moved to September 19th, 2023. In turn, on September 8, 2022, the ANH granted an extensión for the Altair exploration license whereby the new expiration date has been moved to January 5, 2023.

In Argentina, the Santa Cruz operation experienced some surface issues with the gas compressor unit in the Oceano field. Fixing the equipment required it to be stopped impacting the oil and gas sales for the period of the repairment. Field oil and gas production was restored once the compressor was back running around mid-October.

In July 2022, the Company timely paid interest due for its Senior Secured Callable Bond Issue 2015/2026 (ISIN NO0010729908). The amount paid was USD 978,492.83.

Subsequent events and current plans
Partially funded by proceeds from the successful equity raise, and in line with information provided in prospectus, the company continues its efforts to increase oil and gas production and to improve product marketability, as well as to fund activities in the Mata Magallanes Oeste (MMO) and La Brea areas. The potential acquisition of an increased participation in the Santa Cruz concessions is on hold until further notice.

The Company has been working with the authorities on setting the final terms for the reopening of Mata Magallanes Oeste (MMO) and Cañadón Ramírez (CR) areas and an arrangement of the upcoming activities following the reinitiation of operations in the area.

The pulling rig attached to the Santa Cruz operation has been finally inspected and certified and is being prepared to trigger the work-over and pulling campaign in producing wells in Campo Bremen, Chorrillos and Moy Aike fields.

An oil gathering line is being finalized allowing the opening of some isolated oil-producing wells (Cho-13, Cho-10 and Cho-19), in the Chorrillos blocks aimed at adding around 40 bopd.

On 16 October, local authorities granted permission to start operations in Bajo Guanaco Block.  Interoil has contracted the environmental survey required to identify and quantify any potential surface hydrocarbon residues located within the block boundaries acreage from previous operations.

Bajo Guanaco – During the last few weeks, a field visit has been conducted for a visual inspection of the wellheads in CVo.x-2 and OA.x-2, two wells aimed at being intervened in the coming months.  This inspection has confirmed both wells have all their surface wellhead valves in acceptable working order and holding around 3,000 psi of pressure.

Exploration activities continue to suffer social opposition in Colombia.  The Company has reported this to the ANH requesting the relevant time extensions. This has not affected production operations in Vikingo.

 

For more information, please see enclosed Interoil Exploration and Production ASA's Report for the third quarter of 2022.
This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.
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Please direct any further questions to [email protected]

About Interoil
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 and license holder of several production and exploration assets in Colombia and Argentina with headquarter in Oslo.

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