"InterOil Corporation (TSX: IOL) (AMEX: IOC) (POMSoX:IOC) today announced that its $130 million secured credit facility with lenders Merrill Lynch Capital Corporation (Merrill) and Clarion Finanz AG acting through an affiliate, Pacific LNG Operations Ltd (Pacific LNG) was amended to extend the existing 4% interest rate from June 30, 2007 to July 31, 2007. With execution of a shareholder agreement covering the Papua New Guinea liquid natural gas (LNG) project by the company and these lenders on or before July 31, 2007, the interest rate will continue to be 4% for the full term of the loan, which ends May 2008. If an agreement is not finalized, the interest rate will increase to 10% unless the lower rate is further extended by the parties."
what do you see the likely hood of IOC getting a argeement? if not, would it be wise to sell?
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With all the support for LNG in PNG i dont see the interest rate rising.. The lenders and the government there WANT the project to move forward.. They do not want it to die.
And even if Elk-2 doesnt hit their needs, they move on to Antelope and drill some more.
Go back and look at past PR's and you'll really start to see the value of Interoil and this project:
China is in talks to buy Papua New Guinea gas (International Herald Tribune) Updated: 2005-12-05 22:09
China National Petroleum, the biggest Chinese oil company, is in talks with the Papua New Guinea government about buying natural gas, Petroleum and Energy Minister Moi Avei of Papua New Guinea said Monday.
An initial accord may be signed between the government and the Chinese company during a planned visit by Avei to China early next year, the minister said. China National Petroleum may import the fuel in the form of liquefied natural gas through a plant the company may build in northern Papua New Guinea, he said.
China and its state-controlled oil companies are seeking oil and gas supplies abroad as energy prices reach records. China National Offshore completed an agreement last year to buy a stake in Australia's North West Shelf gas reserves as part of a plan to buy LNG from the venture.
In June, the Australian Bureau of Agricultural and Resource Economics estimated that China's LNG demand might surge from zero to 18.3 million tons a year by 2015 as the government promotes the use of cleaner-burning fuels. China currently relies on coal and oil for 90 percent of its fuel needs.
Everyone knows the gas is there. Everyone wants the gas. Its just a matter of hitting a good column to start the project. Every country wants some of the gas. Once they hit a good gas column all hell is going to break loose (IMO!).
We even have more recent PR's of other companies trying to jump in! So to hell with all those that claim theres no support for LNG there!
Santos Limited Wednesday, April 11, 2007
Santos Limited on Wednesday announced that it has entered into an agreement with ExxonMobil, Oil Search and Nippon Oil to jointly progress a detailed pre-FEED study of a standalone LNG project based on the Hides gas field in Papua New Guinea. Under the terms of the Cost Sharing Agreement, the pre-FEED study will evaluate technical and commercial merits of developing a 5.0 to 6.5 million tonne per annum LNG facility, targeting first cargos in the 2012 to 2013 timeframe.
"This LNG evaluation phase is expected to be completed by the end of 2007, following which the participants will be in a position to decide whether to progress to Front End Engineering Design (FEED)."
Everyone keeps saying that everyone else but interoil abandonded the LNG... not! There are so many companies still trying.
- And this is on Exxon mobil's website:
Status of PNG Gas Project and PNG LNG Evaluations
Both the PNG Gas Project and Australian Pipeline Project had experienced significant cost growth, eroding economics of the PNG Gas Project which was to export sales gas via a pipeline from PNG to Australia.
The PNG Gas Project also suffered a serious setback when AGL-Petronas Consortium (APC) decided not to proceed with construction of the Australian pipeline in August 2006.
In response, the Gas Project participants recognized the desirability of evaluating alternate developments (including an alternate Australian Pipeline concept, various domestic gas opportunities in PNG and LNG) to ensure that the best development was identified for commercialization of PNG’s significant gas resources.
There is now an acknowledgement that an LNG development offers a better opportunity to capture the greatest value for the State, Landowners and the project proponents.
ExxonMobil is currently moving forward to continue to evaluate a potential LNG opportunity in PNG.
sorry so much in one post.. but ive done SOO much research on this stock before buyign its not even funny.. the LNG in PNG has been such a huge debate for many years that the chance of interoil hitting the gas is well worth the risk.. if the hit the gas that pretty much starts the whole countries LNG project full steam.
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Update on coming PR's... no fluff no filler just to the chase. Good relations.
We are targeting August 13th 2007. As soon as I have a definite date for the filing of our financials as well as details of the investor conference call that usually follows the filings, a news release announcing these details will be filed.
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Much rather have gas than oil.. hold the 10w-30 and gasolines.
Further pushed down on good news:
Merrill Lynch, Partners Set to Sign PNG LNG Venture Accord
By Angela Macdonald-Smith
July 24 (Bloomberg) -- Merrill Lynch & Co.'s commodities unit and partners in a proposed liquefied natural gas project in Papua New Guinea are set to sign an accord by the end of the month to formally set up the venture.
The shareholder agreement will formally incorporate Merrill Lynch Global Commodities and closely held Pacific LNG Operations Ltd. into Liquid Niugini Gas Ltd., Jack Hamilton, chief executive officer of Liquid Niugini Gas, said in a July 19 interview. The accord doesn't commit the partners to building a plant, he said.
The venture, which includes Canada's InterOil Corp., said in April it expects to commit as much as $300 million this year for the construction of an LNG plant in the Pacific nation, which may start production in 2012. The venture has yet to secure supplies for the project and drilling at InterOil's Elk field has so far failed to confirm enough gas.
The shareholder agreement ``is tracking to come together before the 31st,'' Hamilton said. ``It sets out their vision, the commercial terms between them and the governance structure. There are still the normal decision gates to enter front-end engineering and then subsequently the financial investment decision'' before the partners commit to the project, he said.
Shares in InterOil have dropped 41 percent since the beginning of June on investor concern that the Elk-2 appraisal well may be unsuccessful, leaving the proposed LNG project without gas supplies.
Results so far from the well are ``inconclusive,'' Hamilton said in the telephone interview from Sydney. He declined to comment on when the final results from the well may be released.
Engineering Contract
``There's more than enough in the current results that says you would not walk away from this resource,'' Hamilton said. The venture may be ready to award the initial engineering contract for the project in the fourth quarter, he said.
The proposed project may cost $4 billion to $6 billion, Hamilton said in an April interview. Merrill Lynch and InterOil may each hold about 35 percent of the LNG venture, while Pacific LNG may have about 30 percent, he said.
Rival ventures led by Exxon Mobil Corp. and BG Group Plc are also studying LNG projects in Papua New Guinea.
LNG is natural gas chilled to liquid form for transportation by tanker to destinations not connected by pipeline. Demand for LNG almost doubled in the past decade and may more than triple by 2020, Wood Mackenzie estimates.
To contact the reporter on this story: Angela Macdonald-Smith through the Sydney newsroom at amacdonaldsm*bloomberg.net .
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Ah hell its a gamble no need for hoping. Positive or negative news we cant control a damn thing.
Im curious to find out about that large volume spike yesterday. If it was all one block or a few blocks, but either way the price jumped at the same time so it was likely buying/chasing the price up for the short time.. that was $4million traded in a very very short time.
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dont know how valid this is, but here it goes.
TradingMarkets.com Boeing, Northwest Natural Gas Upgraded, InterOil Downgraded Friday July 27, 8:30 am ET By TradingMarkets Research
"InterOil (AMEX:IOC - News) was downgraded to 2, from 3. The company is developing a fully-integrated oil and gas company in Papua New Guinea. IOC shares have lost 34.5% this year and the company has a market cap of $594 million."
on the upside, After Hours: 19.50 0.23 (1.19%) as of Jul 27 on 07/27/07
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InterOil Announces Extension of Preferential Interest Rate on Credit Facility
Drilling and evaluation operations continue on Elk-2 with several important outcomes already achieved:
- Drilled to nearly 8,700 feet (2,650 meters) and confirmed over 3,400 feet (1,040 meters) of total limestone formation from the top of Elk-1 to the current depth of Elk-2.
- Confirmed that the natural gas column in the structure extends to over 2,300 feet (700 meters) while not encountering a gas water contact.
- Gas was produced to surface and downhole pressures were recorded leading to a calculated reservoir pressure in excess of 3,800 pounds per square inch.
- Heavy gas and gas liquid compositions were reported on mudlogs data indicating that the natural gas is becoming richer with depth, information critical to the design features of the LNG plant.
"These well results strengthen our ability to secure the natural gas supply to support and maintain the project on track for delivery of LNG in 2012. We are positive about the progress of Elk-2 and continue with our plans to drill, core and test the entire limestone formation, which may demonstrate expanded natural gas resources for future growth of the LNG project," Mulacek said.
Finally good news! good predict. TimW!
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That PR is just the one lining us up for what we are expecting today..
"With execution of a shareholder agreement covering the Papua New Guinea liquid natural gas (LNG) project by the company and these lenders on or before July 31, 2007"
We had good news about it back then.. and today is the day they said it would happen.. lets see!!
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Merrill Lynch Commodities, Pacific LNG and InterOil Sign Shareholder Agreement for LNG Project Tuesday July 31, 4:31 pm ET
HOUSTON--(BUSINESS WIRE)--Merrill Lynch Commodities, Inc., a wholly-owned subsidiary of Merrill Lynch & Co., Inc. (NYSE:MER - News), Pacific LNG Operations Ltd, and InterOil Corporation (TSX:IOL, AMEX:IOC, POMSoX:IOC) have executed a shareholder agreement for the development of a liquefied natural gas (LNG) project in Papua New Guinea (PNG). ADVERTISEMENT
"This is a major step forward in developing the first LNG project in PNG and a result of the vision, determination and dedication of all involved," said David Sobotka, head of Merrill Lynch Commodities. "With the agreement now finalized, we have a platform to deliver on our goal to build a world-scale LNG facility."
The shareholders have agreed to establish PNG LNG Inc. as the holding company for Liquid Niugini Gas Ltd., the Papua New Guinea-based entity that will own and operate the LNG facility. The shareholders will each have a one-third beneficial ownership interest in PNG LNG Inc. with provisions for the entry of strategic partners to provide additional expertise and capital. An allowance has also been made for inclusion of the Government of Papua New Guinea as a partner in the LNG project.
InterOil Chairman and CEO Phil Mulacek commented, "We have the critical infrastructure in place today and the operating experience in PNG to provide support essential for the project's success. The project remains on track and we are ready to proceed with contractor selection and the final engineering and design work."
The current project design consists of a two-train liquefaction plant with processing capacity of nominal 1.6 bcf/d, condensate and gas liquid processing, handling and storage facilities, and a natural gas pipeline from supply sources. First production of LNG is targeted for 2012.
Pacific LNG's Director Carlo Civelli explained, "Our significant investment in InterOil's exploration program underpins our confidence in this venture. We are proud to be a party to this agreement, which will benefit both the shareholders and the people of Papua New Guinea."
InterOil is designated as the preferred natural gas supplier to the LNG project, with its Elk and Antelope structures identified as the key gas resources for the project. As a result, InterOil will continue its upstream activity focusing on adding resource potential, and establishing reserves and deliverability to expand the project.
Under the agreement, Merrill Lynch Commodities and Pacific LNG will fund cash outlays for front-end engineering and design. Merrill Lynch Commodities is designated as the preferred purchaser and marketer of the LNG output and an affiliate of Merrill Lynch Commodities is designated as the preferred provider of structuring advice for the project financing.
InterOil Corporation is developing a vertically integrated energy business whose primary focus is Papua New Guinea and the surrounding region. InterOil's assets consist of petroleum licenses covering about 9 million acres, an oil refinery, and retail and commercial distribution facilities, all located in Papua New Guinea. During 2006, the company announced a gas and condensate discovery, completed an optimization program at the refinery, and doubled the downstream business by acquiring Shell's distribution assets in Papua New Guinea.
Merrill Lynch is one of the world's leading wealth management, capital markets and advisory companies, with offices in 38 countries and territories and total client assets of approximately $1.7 trillion. As an investment bank, it is a leading global trader and underwriter of securities and derivatives across a broad range of asset classes and serves as a strategic advisor to corporations, governments, institutions and individuals worldwide. Merrill Lynch owns approximately half of BlackRock, one of the world's largest publicly traded investment management companies, with more than $1 trillion in assets under management. For more information on Merrill Lynch, please visit www.ml.com.
Pacific LNG is an investment vehicle, created and controlled by Clarion Finanz AG, to invest in emerging markets energy projects.
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My drinks involve whole milk so i can party all i want at these prices! LoL
Whats your entry point?
I got in before the dip i think im around $23/share.. definetly holding for awhile.. it hit 40$ on hype/speculation and now that the hype is real it should have no problem suprassing that!
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The project remains on track and we are ready to proceed with contractor selection and the final engineering and design work.
The plant and pipeline is a reality! MUAHAHAH!
Now we got about 2 weeks for quarterly financials.. and i think drilling report should be soon (and will definetly be positive if everyone is moving forward with the plant!)
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