InterOil Enters Into Heads Of Agreement With Pacific Rubiales Energy For Interest In Triceratops And PPL2

abarrelfullabarrelfull wrote on 02 May 2012 06:39
Tags: asia interoil pacific-rubiales papua-new-guinea upstream

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InterOil Corporation (NYSE:IOC) (POMSoX:IOC) (“InterOil” or the “Company”) announced that it has signed a binding Heads of Agreement with Pacific Rubiales Energy (TSE:PRE) 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. 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.

This transaction is not associated with the planned sale of an interest in the Elk and
Antelope fields and related LNG equity partnering process targeted for the second quarter of 2012.

In accordance with the HOA, the farm-in is subject to the accomplishment of certain
milestones over a one year period (generally, execution of definitive documents and acceptance of registration of the assignment documents by the Government of Papua New Guinea) and other standard industry conditions. Key commercial terms to acquire a 10.0% net participating interest in the PPL237 license, including the Triceratops structure, include the following:

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