InterOil Exploration & Production ASA - otc.nfmf.nootc.nfmf.no/public/news/4436.pdf · 12 May 2006 Fondsfinans 1 InterOil Exploration & Production ASA Company Presentation - May 2006

12 May 2006 Fondsfinans 1

InterOilExploration & Production ASA

Company Presentation - May 2006


Company Background

Negotiations for the South American assets initiated september 2004

Extensive due diligence prosess and initial financing until September 2005 by the founders Nils N. Trulsvik, Gian Angelo Perrucci and Mårten Rød

Interoil Exploration and Production ASA established (Norwegian joint stockcompany), aquisition of the assets by Interoil

Equity issue of USD 45 mill. together with debt financing of USD 42 mill.

Listing on the Norwegian OTC market under INOX

To be listed on OSE during 2006


Key Data

Production (April 2006)Peru 2 500 bbl.Colombia 1 057 bbl.Total 3 557 bbl.

Reserves (December 2005) (proven and probable)Peru 10.4 boedColombia 5.6 boedTotal 16.0 boed

Financial DataTraded (symbol: INOX) OTC (to be listed on OSE)Share price NOK 27Number of shares outstanding *) 21’245’000 Market capitalisation NOK 574m (USD 90m)Net interest bearing debt (end 05) NOK 276m (USD 42m)

Production and Reserves are working interest

*) The company’s Creditor is entitled to shares corresponding to USD 5m of Market capitalisation by listing of the shares


Peru and Colombia – exciting opportunities

Increased political and economic stability

Recent favourable oil policy reforms - Peru and Colombia two best contract terms in Latin America *

Rapidly attracting new foreign investments in energy sector

Companies like Chevron, Total, Occidental, Petrobras, Nexen, Talisman and Hocol are all operating in the area. ExxonMobil has returned for exploration after 10 years, and others like BHP, Repsol, Burlington and Lukoil have recently arrived

Latin America is under-explored with large oil and gas reserve potential- “Only 11% of Colombia’s total sedimentary area has been licensed” : Oil & Gas Conference,

Cartagena, May 2005

*) Wood Mackenzie – Latin America Upstream Insights July 2004


Long-term goal to participate in both onshore and offshore exploration and production activity and achieving a balanced portfolio consisting of exploration, appraisal, developing and producing assets

Organizational developmento Build up local technical and operational competence in order to facilitate local

demands and keep costs to a minimumo Build up a small and effective multi-disciplinary team of key professionals and

outsource all services to the extent practical

Focus on increasing production from current portfolio in Peru and Colombiao New wells in combination with a large work-over and rehabilitation programo Further growth to come from purchase of discoveries ready for development and

participating in strategic exploration opportunities

Company objectives and strategy

Develop InterOil as a production and exploration company active primarily in South America and West Africa


Organization and Management

Nils N TrulsvikManaging Director

Jon WiggenCFO

René GrafCTO

InterOil E&P ASABoard of directors

Gian Angelo Perrucci, Mårten Rød, Blair Thomas

InterOil E&P Africa AS

Pascal BerthouGeneral Manager

CongoAngola

Advisory BoardJoseph von der Weid

Fredrik von ZernichowPetroleum Econ. / IR

InterOil E&P Latin America AS

ColombiaMauricio de la Mora

General ManagerNumber of staff: 46

PeruPedro Timana

General ManagerNumber of staff: 80


Management team and key personnel – CV’sGian Angelo Perrucci, born 1943, is an Italian entrepreneur. He previously built up a major shipping company in USA and Europe. During the last 15 years, he has developed a major logistics operation in West Africa including supply bases, engineering and production yards, and offshore support vessels.Joseph von der Weid, born 1934, has long experience from executive positions for Shell in South America. Has been E&P Manager in Shell Argentina, General Manager in Shell Peru (1981-86), President and CEO in Shell Columbia (1986-88) and President in Shell Argentina (1988-91).Mårten Rød, born 1948, has long experience as entrepreneur and from the oil and gas industry both upstream and downstream. Was working 11 years for Arco in the North Sea, founded Northern Energy UK in 1998, an oil company with production in Texas and Oklahoma, President in Interoil Norway from 1995, which participated in various oil and mineral projects in West-Africa.Blair Thomas, Group Managing Director for Energy & Infrastructure works at TCW. He was a Senior Officer involved in structuring and negotiating private sector non-recourse project finance transactions related to infrastructure and natural resource development in Global Energy and Infrastructure. He has a BA from the University of Virginia, a JD from New York Law School and an LLM from Georgetown University Law Center. Nils N. Trulsvik, born 1948, is a petroleum explorationist with extensive experience throughout the world. Was working seven years with Saga Petroleum with assignments in the North Sea, Mediterranean, Africa, South and North America. Co-founded Nopec in 1981, where he was working for 13 years with assignments in Northwest Europe, Africa and the Far East. Managing Director from 1987 until 1993. He was part of the management team in Fountain Oil from 1994 – 1998. Has been working with various oil and gas projects the last 10 years.René Graf, born 1947, has long international experience covering all aspects of exploration with focus on geophysical field operations, processing and interpretation, both 2-D and 3-D, land and marine. This experience has been acquired during a period of almost 20 years working for Shell International in The Netherlands, France, Malaysia and Colombia.Jon Wiggen, is a state authorized auditor and has over 30 years experience in various businesses including several publicly listed companies. He was CFO for Brynestad Group of companies for several years.


Financial Data 2005

-100Loss before tax

611 311144 249Production, after royalties (bbls)

28 4957 991Operating revenue

8 8003 500Capitalised Expenditures

18 9003 200EBITDA

927 920221 367Production, before royalties (bbls)

Proforma Year 2005

INOXQ4 2005

Unaudited figures in USD 1000


Location – Facts & Figures

ColombiaPopulation: 42.3 mill.Area: 1 138 910 km2Political: RepublicCapital: BogotaOil prod: 512 400 bbl/dOil cons: 270 000 bbl/dOil proved res: 1 436 mill bbl.

PeruPopulation: 27.9 mill. Area: 1 285 220 km2Political: RepublicCapital: LimaOil prod: 120 000 bbl/dOil cons: 157 000 bbl/dOil proved res : 370 mill bbl.


Peruvian assets

2 blocks, 100% ownership, Operator- Number of Employees 80- Total number of wells approx. 800 - Area 164,000 acres (663 km2)

Production

Reserves ¹

Large number of new well locations available- 52 proven and 33 probable

Royalty (2005): 40.4 %²

Corporate tax: 30 %1) Reserves as of Desember 31, 2005. Source: Gaffney Cline & Associates2) Royalty is dependent on oil price: Oil price USD 35 → Royalty 34.1%

Oil price USD 65 → Royalty 45.7%

Block IV

Block III

N

Production 2005 2004 Annual production ‘000 bbl 623 465 Average daily production bbl/d 1,706 1,275 OPEX ‘000 USD 3,074 2,351 OPEX USD/bbl 4.9 5.1

RESERVE CATEGORY / BLOCK PERU TOTAL

Proven and probable - Working interest (mill bbls) 10,4Proven and probable - Net entitlement (mill bbls) 6,0


Colombian assets

Includes one company and six contract areas- Number of employees 46- Wells in production 42 - Area 62,945 acres (258 km2)

Production

Reserves ¹

Large number of new well locations available- 23 proven and 29 probable

Royalty (2005): 18.3% ²

Corporate tax: 38.5 %1) Reserves as of Desember 31, 2005. Source: Gaffney Cline & Associates2) Royalty variate between 8 & 20% dependent on contract area

Production 2005 2004 Annual production ‘000 bbl 305 290 Average daily production bbl/d 836 794 OPEX ‘000 USD 2,303 1,546 OPEX USD/bbl 7.5 5.3

RESERVE CATEGORY COLOMBIA TOTAL

Proven and probable - Working interest (mill bbls) 5,6Proven and probable - Net entitlement (mill bbls) 4,7


Peru and Colombia – Production Targets

Oil Production in 1000 bbl/d

0

1

2

3

4

5

6

7

2001 2002 2003 2004 2 005 2006E 2007E 2008E 2009E 2010E

Peru

Colombia

• Sharp increase in oilproduction in the comingyears

• Production target of closeto 6,000 bbl/d in 2008

• Modification of plannedprogram dependent onsuccess factors


Peru and Colombia – Field Capex

USDm

Peru

Colombia

• Current Capex plan for 2006 approx. USDm 19

• One drilling rig and twoworkover rigs currently in operation in Peru

• One drilling rig and onework-over rig currently in operation in Colombia

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

2001 2002 2003 2004 2005E 2006E 2007E 2008E 2009E 2010E

Peru

Colombia


PERU CAPEX 2006E• USD 11 million

• Min. 8 New Wells

• 20 – 24 rehabilitations

• 20 – 24 workovers

Expected net productionincrease

• 1,100 bbl/d

Peru and Colombia – Investment Programme

COLOMBIA CAPEX 2006E• USD 8.0 million

• 7 New Wells

• 5 rehabilitations / fracture jobs / horizontal wells

• 14 – 20 workovers

Expected net productionincrease

• 600 bbl/d


Peru Block III – IV - 2006 Drilling Campaign

Existing Database455 wells in Block III

358 wells in Block IV

Area of Focus

Block III

Block IV


Well locationDrilled

Well 13004

Well 13006

Well 13009

To be Drilled 2006

Well 13014

Well 13018

Peru Block III – 2006 Drilling Campaign


Well locationDrilled:

Well 12612

Well 12616

Well 12617

Well 12618

To be drilled (2006)

Well 12619

Well 12621

Peru Block IV – 2006 Drilling Campaign


Peru Block IV – Development


Peru Block IV – Development


Well no. and location

(completed)

TC 13

TC 15

AMB 6

TC 16

Puli 7

Mana 3

To be drilled (2006)

TC 18

Puli 8

Colombia – 2006 Drilling Campaign

5 km


Colombia – 2006 3D Survey

3D: ~ 80 km2

~ 2.7 MM USD


Establish solid technical foundation

Integrate local knowledge with modern exploration and production technology

Supplement geological and geophysical data where necessary

Build solid subsurface geological structural models

Identify structural and stratigraphic potential

Drill wells to increase production and remaining reserves

How to Reach Production Targets – Summary


Technical Work ProgrammePeru

Completion of seismic data loading and well data base (TD, datum elevation, velocity surveys)Incorperation of production data in Geographix production databaseInterpretation of 3D-seismic in zone C, critical review of existing fault modelDigitization of ~800 paper logs into Geographix well baseGeological log interpretation to produce facies mapsCheck possibility of drilling horizontal wells to increase production

ColombiaReview and refine the sedimentological model together with staff in BogotáCalibrate the seismic data with well logsRefine the “quick” interpretation done based on 2D-lines, establish an agreed fault systemOn-the-job training for local staff in seismic interpretationGet and load all production data into Geographix production databaseConsider a 3D-seismic surveyDiscuss with Ecopetrol and ANH the possibility of swapping commitment wells for 3D-seismicConsider a Spectraseis survey to directly map hydrocarbonsCheck possibility of drilling horizontal wells


Angola – Licensing

Interoil Awarded (May 10th, 2006)

• 40% Block 5• 20% Block 6


Angola – Block 5

Block 5 – Angola• 5708 km²


Angola – Block 6

Block 6 – Angola• 4930 km²


Shareholders structure May 2006

*) Total shares owned by Board/Management 53%

Number of shares

% - Ownership

CABERIAN INVESTMENT INC 5 225 000 24,59 Gian Angelo PerrucciEKSPORTCONSULT AS 5 225 000 24,59 Mårten RødCREDIT SUISSE SECURITIES 1 870 600 8,80 BEAR STEARNS SECURITIES CORP. 1 618 800 7,62 FORCE CAPITAL PARTNERS AS 800 000 3,77 Nils N TrulsvikNORINVEST LTD 500 000 2,35 AWILCO INVEST AS 450 000 2,12 MUSLIK AS 443 450 2,09 KLP FORSIKRING AKSJER 400 000 1,88 STOREBRAND LIVSFORSIKRING AS 392 420 1,85 SKANDINAVISKA ENSKILDA BANKEN 387 800 1,83 BANK OF NEW YORK, BRUSSELS BRANCH 319 200 1,50 AWECO INVEST AS 300 000 1,41 MORGAN STANLEY AND CO.INTL.LIMITED 281 250 1,32 CONSAFE INVEST AB 275 000 1,29 BANQUE INVIK SA LUXEMBOURG 269 500 1,27 BANQUE INVIK SA LUXEMBOURG 200 000 0,94 KLP AKSJENORGE 120 000 0,56 FOLLUM INVEST AS 100 000 0,47 DEUTSCHE BANK AG LONDON 98 750 0,46 INTERTRADE SHIPPING AS 97 500 0,46 Total 19 374 270 91,19 Number of shareholders 119Total number of shares 21 450 000


• Management with extensive experience in South America and West Africa

• Local management to develop existing and new projects• Strong technical G&G team in Zürich

Experienced team

• Strong historical presence in West Africa• Several projects under evaluation / negotiations• Angola Blocks Awarded

Positioned to growin West Africa

• Portfolio provides for substantial organic growth in production• Considerable exploration potential in Colombia• Exploration targeting deeper reservoars to be evalueted

Large growthpotential

• Production in Peru and Colombia• Local management in both countries• Sharp increase in oil production

First building blockin place

InterOil Investment Case

Documents

InterOil Exploration & Production ASA - otc.nfmf.nootc.nfmf.no/public/news/4436.pdf · 12 May 2006 Fondsfinans 1 InterOil Exploration & Production ASA Company Presentation - May 2006