InterOil Hits Bullseye with Record Production Target, 26% Increase
InterOil Exploration & Production ASA reached record levels both in revenue, oil production and results in Q3 2008. The consolidated revenue was US $31.2 million with an EBITDA of US $32.0 million. The production increased by 26% compared to Q2 2008 and net profit after tax was US $17.6 million, up from a loss of US $-9.9 million in last quarter. Successful drilling in both Peru and Colombia during Q3 and the start of Q4 2008 will contribute to further production growth in the upcoming quarters.
"The third quarter of 2008 has operationally and financially been the most successful quarter in InterOil's three year history and we are very pleased with the company's development. Our production has reached record levels and is increasing. We reached our year-end target of 8,000 bopd in the end of October and have now upgraded our target to 10,000 bopd," said Nils N. Trulsvik, CEO of InterOil Exploration & Production.
InterOil's third quarter 2008 consolidated revenues were a new record of US $31.2 million for the period, compared to US $29.6 million in prior quarter. The EBITDA in the period was over seven times higher than in prior quarter, up from US $4.2 million to record high US $32.0 million. The EBITDA include an unrealized gain in amount of US $12.9 million for the period compared to an unrealized loss in prior quarter in amount of US $10.5 million related to the fair value of the outstanding open derivative contracts. Net profit before tax for
the period was US $23.6 million, up from a loss of US $ -4.6 in prior quarter. The production generates a positive cash flow and the cash position has increased by 67% to US $21.1 million since last quarter.
InterOil will continue the drilling in Peru and Colombia in Q4 2008. In Peru, InterOil will complete six more wells in the Mirador area during the next couple of months. While in Colombia we will complete six more shallow wells in the Mana license in 2008. As a result of the active drilling in Peru and Colombia, InterOil expects its production to increase significantly before the end of 2008.
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