Through an alliance with General Exploration Drill Holdings (“GEDH”), parent of the drilling contractor, RB Drilling, of the Moose Prospect, a special purpose built drilling rig was developed encompassing slim hole drilling technology. InterOil and GEDH have entered into an agreement, subject to regulatory approvals, whereby InterOil will issue approximately 31,240 shares of common stock at a price consistent with its last equity issuance, or C$13.75 per share, to GEDH for part of the payment for the drilling rig and design services. In total, this equates to a transaction value of approximately C$429,550 (US$293,654). These shares will be subject to a four-month hold period.
"We welcome RB Drilling's commitment to InterOil and our drilling program," stated Phil Mulacek, CEO of InterOil. "We are pleased to add RB Drilling to a prestigious group of corporate partners that have supported us, and who believe in InterOil's future as an emerging integrated energy company."
"We requested an arrangement that gives us ongoing interest in the drilling program, and offers incentive for us to maximize our performance," said Rod Trigwell, General Manager of RB Drilling. "It reflects our confidence in the InterOil drilling program."
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