Report for the first quarter 2018 - hugin.infohugin.info/137537/R/2195750/852324.pdf · with positive pumps, such as the widely renowned rod sucker type of pumps. This study is to

INTEROIL EXPLORATION AND PRODUCTION ASA | Report for first quarter 2018, 29 May 2018 | Page 1

Vikingo well location, flooding during raining season at llanos Area in Casanare, Colombia

Report for the first quarter 2018

Interoil Exploration and Production ASA

c/o Advokatfirmaet Schjødt AS

Ruseløkkveien 14

0251 Oslo, NORWAY

WWW.INTEROIL.NO

[email protected]

http://www.interoil.no/


Key figures

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

Gross production oil/gas (boe) 124 571 121 398 135 070 159 040 145 755

Production oil/gas (average boepd) 1 384 1 334 1 468 1 729 1 584

Oil/gas sold (boe) * 83 682 80 745 97 612 122 153 110 948

Oil price average (usd/bbl) 49.7 47.2 49.4 57.8 63.2

Revenues (USDm) 3.8 3.6 4.6 5.3 6.1

EBITDA adjusted for exploration expenses (USDm) 1.6 1.2** 1.6 2.4 3.2

Operating profit (USDm) -0.1 -1.2 -0.4 0.3 0.8

Exploration expenses (USDm) 0.2 - 0.4 1.4 0.2

Net loss/profit (USDm) -1.4 -2.3 -1.8 -0.8 -0.3

Cash and cash equivalents at end of period (USDm) 9.4 9.2 7.1 7.5 6.7

* 2017 oil figures (net working and sold barrels) were recalculated to make it comparable with 2018 figures based on IFRS 15 requirements.

** Nonrecurring items were included, employee severance, management bonus and PeruPetro litigation provision.

• New IFRS 15 requirements change the way Interoil recognizes revenues and oil working interest participation. As from

1Q 2018 partners participation not paid in kind is presented as part of revenues and Working interest production.

• Property plant and equipment increase of USD 2.1 million corresponds to the part of Vikingo well paid by the partner SLS which

is being paid based on well production and will be fully repaid by 3Q 2018.

• As a result of the stabilization in Vikingo well production, Interoil maintains gross daily average production over 1.500 boed.

• Higher level of sales and the improvement in the Oil price, drives an increase in revenues from USD 5.3 million in Q4 2017 to

USD 6.1 million in 1Q 2018.

• The Company delivered an adjusted EBITDAx (EBITDA adjusted for exploration cost) of USD 3.2 million, higher than in Q4

2017: USD 2.4 million. Operating revenues of USD 6.1 million (Q4 2017: USD 5.3 million).

• Net comprehensive loss came in at USD 0.3 million (Q4 2017: USD 0.8 million loss).

Business overview

Interoil is the operator of two production licenses (Puli C and

Altair) and two exploration licenses (COR-6 and LLA 47) in

Colombia.

Interoil acquired the Colombian assets in 2005 from Mercantile

International Petroleum Inc., and has since then been successful

in increasing production and the resource base through

enhanced recovery from existing wells, successful drilling of new

production wells, extension of existing fields as well as discovery

of new accumulations through exploration.

Exploration

Interoil holds a 100% working interest in the LLA-47 exploration

block covering an area of 447 km2, acquired in the 2010 ANH

bidding round. Interoil has completed shooting, processing and

interpreting 350 km2 of 3D seismic, suggesting that the license

may hold more than 30 million barrels in prospective resources.

LLA-47 represents a significant value driver for the company.

The ANH has approved Interoil’s plan to combine phase 1 and 2

commitments under the license agreement. Interoil now has a

commitment to drill 10 wells before 10 February 2020.

Together with SLS, Interoil has an on-going three-well drilling

campaign in LLA-47. The first well, Vikingo-1, was successfully

drilled in 2017 and tested with a steady flow of 744 bopd on a

natural flow.

The Vikingo well brought a lot of hard geology data that when

integrated with the existing interpretation showed

inconsistencies that call for a reprocessing of the existing 3D

seismic acquisition field data.

Seismic reprocessing has been concluded and the interpretation

of the areas of interest has started. Drilling is expected to be

resumed as soon as the seismic reprocessing is finalized.

Production

The Puli-C and Altair fields, in addition to the Vikingo well in LLA-

47, produced 936 barrels of oil equivalents per day net to Interoil

on average during the quarter, compared with 1,019 boepd in

the previous quarter.

Working interest production of oil and gas slowly decrease from

125,052 boe in Q4 2017 to 116,174 boe in Q1 2018 due to Mana

field lower production and pressure build up tests ran in Vikingo

during late February and early March. In addition, oil prices

improved from USD 57.8/bbl in Q4 2017 to USD 63.2/bbl in Q1


2018. The gas price was stable. The number of barrels sold

during the period was 110,948 bbls compared to 120,197 bbls in

Q4 2017.

The geological structure in Puli C is challenging and complex

and Interoil’s technical team is carefully developing new

strategies to enhance recovery ratio. A new dynamic reservoir

model has been developed, and advanced measures aimed at

the increase recovery are being evaluated, including water

flooding and chemical injection.

Interoil is evaluating installation of artificial extraction system by

replacing the current progressive cavity pump (Moineau pumps)

with positive pumps, such as the widely renowned rod sucker

type of pumps. This study is to enhanced maintenance program,

reduce paraffin formation in the tie-in lines aimed at diminishing

deferred production due to malfunction in the subsurface and

surface production equipment.

The Company decided to install a new gas treatment plant in

Mana to take all the rich components (mixture of propane,

butane and natural gasoline) leaving dry gas under commercial

specification according to the Colombian gas market. The plant

was transferred from Louisiana to Houston, Texas for

commissioning.

The Company is also working to meet the requirements for an

upgrade of the environmental license incorporating the gas

treatment facilities. Interoil is unable to accurately estimate how

long this process may take.

Commissioning has been completed and the treatment plant will

be parked in Houston until licence upgrade is finalized.

The Company shall evaluate alternatives to the project with the

view of maximizing efficiencies.

The Company has successfully extended a gas selling contract

with Turgas until 31 December 2018. Turgas' treatment facility is

located next to the Mana field.

In the LLA-47 block, Interoil is pleased with the results and the

production from the Vikingo well, flowing at an average

production rate of 550-600 bopd in the quarter.

In accordance with an operation and maintenance contract with

Hocol, a sister company of Ecopetrol, Interoil is managing

Hocol’s production at the Toqui-Toqui, Totare and Puli fields.

This contract consists of a base monthly fee plus an operation

fee linked to production. The Toqui-Toqui field is located close

to the Mana field. This contract was recently extended until

December 2019.

P&L comments

Quarterly revenues increased by 46% compared to same period

last year from USD 3.7 million (Q1 2017) to USD 6.1 million, due

to higher production, increased oil prices and the change in

revenue recognition (USD 0.6 Million). Revenues in the Q4 2017

were USD 5.3 million.

Operating result came in at USD 0.8 million for the quarter, an

improvement compared to a loss of USD 0.2 million in the same

period last year. Because of the change in “non-kind partners”

recognized cost of goods sold is higher in USD 0.6 million during

the quarter.

Net finance cost for the quarter of USD 1.2 million (Q4 2017:

USD 0.8 million) mostly related to interest expenses led to a loss

before income tax of USD 0.4 million (Q4 2017: 0.7 million loss).

Total comprehensive net loss for the quarter amounted to USD

0.3 million (Q4 2017: USD 0.8 million loss).

Balance Sheet and Equity

Non-current assets of USD 32.8 million corresponds to a fixed

asset in Colombia. Interoil held USD 6.7 million in cash at the

end of the quarter, of which USD 4.8 million was restricted. The

restricted cash relates primarily to cash collateral for guarantees

and loans.

As of 31 March 2018, book equity for the consolidated Group

was USD -6.9 million.

Of Interoil’s non-current liabilities of USD 42 million, USD 37.1

million relates to the USD bond loan and USD 0.7 million relates

to leasing for offices in Bogota. A deferred tax liability of USD 1.7

million relates to the non-cash impact of exchange rate changes

on the tax base of non-monetary assets and liabilities, and

provisions and retirement benefit obligations amounts to USD

1.7 million.

Current liabilities of USD 9.1 million relate to bank loans in

Colombia of USD 2.2 million and trade and other

payables/provisions of USD 6.8 million.

In addition to the interest-bearing debt outlined above, Interoil

also has off-balance sheet commitments relating to required

work programs on its exploration licenses (see Annual Report

2017), that are partly pre-funded in the form of bank guarantees.

Further to combing phases 1 and 2 on the Altair and LLA-47

licences, the Group is currently in discussion with the ANH to

determine the impact on the Group’s guarantee obligations,

which will continue to be reduced once the remaining wells are

drilled.

Cash flow

In the 1Q 2018 the Company generated cash flows from

operations of USD 3.8 million, financing cash outflows of USD 2

million and cash outflows from investing activities of USD 2.7

million.

Financial outflows relate to interest payments of USD 1.1 million

and repayment of loans of USD 0.9 million.

The Group had a net cash outflow of USD 0.8 million during the

period.

Guarantees

According to the LLA- 47 exploration contract, the combination

of the phase 1 and 2 requires the existing USD 4.8 million bank

guarantee to be increased. Hence, Interoil is continuing

conversations with the ANH aiming to structure an efficient

guarantee scheme that would fulfil the ANH requirement based

on Interoil’s possibilities under current market circumstances.

The ANH has agreed to change the work requirements to 10

wells (one already drilled) and 4,098 geochemistry samples in

replacement of well coring and other well activities. Samples

have already been taken and are being analysed. Final report


will be presented so guaranty requirement can be reduced

accordingly.

As previously reported, an agreement to transfer the USD 22

million assigned exploration commitments on COR-6 to Altair

and LLA-47 was agreed with the ANH and confirmed by the

Attorney’s General’s office, subject to Court approval.

The Court did not ratify the agreement and Interoil filed a motion

for reconsideration. The court rejected the reconsideration

motion in February 2017, and in March 2017 ANH sent a request

for the commitment to be fulfilled. This was not a mandatory

payment order and the company has responded to the ANH

reiterating its position and its continuing willingness to formalise

the agreement reached with the ANH to transfer the COR-6

license commitments to the Altair and LLA-47 licenses.

Interoil initiated an arbitration process to resolve the conflict. On

July 21, 2017, the said arbitration claim was presented before

the Conciliation and Arbitration Centre of the Chamber of

Commerce of Bogota, in search of the nullity of the termination

of the contract and the alleged recognition of wrongdoing, the

Arbitral Tribunal was appointed on January 2018 and the filed

claim was admitted by the tribunal in February. A new hearing is

expected to be held June. Based on the fact that a previous

agreement had been reached, the Company and its legal

advisors are confident that a successful outcome will be reached

in the short to medium term. As a result, Interoil believes it is

more likely than not that an agreement can be achieved;

therefore, this claim is not reflected in our financial statements.

Outlook

Interoil continues to pursue a strategy which involves diligent

management of production and reserves in the Puli C and Altair

fields, and from the Vikingo well. The company is continually

considering activities that would increase recovery rate and

remove bottle-necks in the processing and product export

solutions.

In parallel, the company develops exploration prospects in the

LLA-47 block and prepares to continue the drilling campaign

later this year.

The company continues to evaluate opportunities in Argentina

aimed at expanding its current presence in Latin America.

Oslo, 28 May 2018

The board of directors of Interoil Exploration and Production ASA


Consolidated interim statement of comprehensive income

Amounts in USD 1 000 Note

For the 3 months period

ended 31 March 2018


ended 31 December 2017


ended 31 March 2017



(Unaudited) (Unaudited) (Unaudited) (Audited)

Sales 4 6,156 5,325 3,705 16,602

Cost of goods sold ex depreciation 5 -2,531 -1,792 -1,058 -5,618

Depreciation 5 -2,273 -805 -1,740 -5,756

Gross profit 1,352 2,728 907 5,228

Exploration cost expensed -181 -1,364 -179 -1,914

Administrative expense -766 -780 -1,013 -4,230

Other (expense)/income 390 -397 143 -606

Result from operating activities 795 187 -142 -1,522

Finance income 6 40 245 51 651

Finance cost 6 -1,267 -1,086 -973 -4,008

Finance expense – net -1,227 -841 -922 -3,357

Loss before income tax -432 -654 -1,064 -4,879

Income tax (expense)/credit 8 153 -108 -317 -825

Loss profit from continuing operations -279 -762 -1,381 -5,704

Other comprehensive loss

- -10 - 15

Other comprehensive loss for the period, net of tax - -10 - 15

Total comprehensive loss for the period,

net of tax -279 -772 -1,381 -5,689

Attributable to:

Equity holders of the parent

-279 -772 -1,381 -5,689

-279 -772 -1,381 -5,689

(Loss)/profit per share (expressed in USD)

– basic and diluted – total

-0 00 -0 00 -0 01 -0 02

– basic and diluted – continuing operations

-0 00 -0 00 -0 01 -0 02

The notes 1 to 8 are an integral part of these condensed consolidated financial statements.


Consolidated interim statement of financial positions

Amounts in USD 1 000 Note As of 31 March 2018 As of 31 December 2017

(Unaudited) (Audited)

ASSETS

Non-current assets

Property, plant and equipment 32,805 32,431

Total non-current assets 32,805 32,431

Current assets

Inventories 618 480

Trade and other receivables 4,030 4,179

Cash and cash equivalents 6,695 7,524

Total current assets 11,343 12,183

TOTAL ASSETS 44,148 44,614

EQUITY

Share capital and share premium 129,135 129,135

Other paid-in equity 4,744 4,744

Retained earnings -140,812 -140,533

Total equity -6,933 -6,654

LIABILITIES

Non-current liabilities

Borrowings 7 37,781 38,235

Deferred tax liabilities 1,771 2,500

Retirement benefit obligations 768 707

Provisions for other liabilities and charges 1,702 1,553

Total non-current liabilities 42,022 42,995

Current liabilities

Current interest-bearing liabilities 7 5,020 4,545

Income taxes payable 683 -

Trade and other payables 2,279 3,021

Provisions for other liabilities and charges 1,077 707

Total current liabilities 9,059 8,273

TOTAL LIABILITIES 51,081 51,268

TOTAL EQUITY AND LIABILITIES 44,148 44,614



Consolidated interim statement of changes in equity For the period from 1 January 2016 to 31 March 2017

Amounts in USD 1 000

Share capital and

share premium

Other paid-in

equity

Retained

earnings Total equity

(Audited)

Balance at 31 December 2016 129,135 4,744 -134,844 -965

Total comprehensive loss for the period - - -5,689 -5,689

Balance at 31 December 2017 129,135 4,744 -140,533 -6,654

(Unaudited)

Total comprehensive loss for the period - - -279 -279

Balance at 31 March 2017 129,135 4,744 -140,812 -6,933



Consolidated interim cash flow statement

Amounts in USD 1 000 Note For the 3 months

period ended 31 March 2018

For the 3 months period ended

31 March 2017

For the 12 months period ended

31 December 2017

Cash generated from operations (Unaudited) (Unaudited) (Audited)

Comprehensive loss for the period – continuing operations -751 -1,381 -5,689

Total comprehensive loss of the period -751 - 1,381 -5,689

Income tax expense/(credit) -153 317 1,263

Depreciation, amortization and impairment 2,325 1,783 5,973

Amortization of debt issuance cost 6 17 58 363

Change in retirement benefit obligation 61 38 1

Interest income 6 -3 -25 -87

Interest expense 6 792 677 2,767

Unrealized exchange (loss from revaluation of borrowings) - -72 -115

Gain on sale of PP&E - - -72

Impairment loss on PP&E - - 510

Other net financial expense 438 212 524

Changes in assets & liabilities

Inventories -138 -110 66

Trade and other receivables 148 -1,879 -1,868

Trade and other payables and provision and other liabilities 649 -497 2,637

Net cash generated from operating activities 3,857 -879 3,747

Cash flows from investing activities

Net purchases of PP&E -2,699 560 -4,583

Net cash used in investing activities

-2,699 560 -4,583

Cash flows from financing activities

Interest paid

-1,075 -138 -1,608

Repayment of borrowings

-912 -1,575 -8,107

Proceeds from new loans

- -10 6,607

Net cash used in financing activities -1,987 -1,723 -3,108

Net change in cash and cash equivalents -829 -2,042 -3,944

Cash and cash equivalents at beginning of the period 7,524 11,468 11,468

Cash and cash equivalents at end of the period 6,695 9,426 7,524

Whereof cash and cash equivalents, non-restricted

1,895 4,126 3,750

Whereof cash and cash equivalents, restricted 4,800 5,299 4,690 The notes 1 to 8 are an integral part of these condensed consolidated financial statements.


Note1. Corporate information

Interoil Exploration and Production ASA (“the Company”) and its subsidiaries (together ‘the Group’ or Interoil) is an upstream oil exploration and

production company focused on South America. The company is an operator of production and exploration assets in Colombia.

The Company is a Norwegian Public limited liability company incorporated and domiciled in Norway. The Company is listed on the Oslo Stock

Exchange. The Company is registered in the Register of Business Enterprises with organisation number 988 247 006. The Company’s registered

office is c/o Advokatfirmaet Schjødt AS, Ruseløkkveien 14, NO-0251 Oslo, Norway.

The condensed consolidated interim financial information for the period ended 31 December 2017 included the company and its subsidiaries. This

condensed consolidated interim financial information has been authorised for issue by the Board of Directors on 28 May 2018.

Note 2. Accounting policies

Interoil’s condensed consolidated interim financial information is prepared in accordance with IAS 34, Interim Financial Reporting in the context of the

International Financial Reporting Standards (IFRS) as adopted by the European Union.

The same accounting policies and methods of computation, except from those disclosed below, are followed as compared with the financial statements

for the year ending 31 December 2017, and this condensed consolidated interim financial information should therefore be read together with the

consolidated financial statements for the year ended 31 December 2017 prepared in accordance with IFRS as adopted by the European Union. IFRS

8 and IAS 33 have been applied as the Company is listed on the Oslo Stock Exchange.

With effect from 1 January 2018 Interoil adopted certain revised and amended accounting standards and improvements to IFRSs as further outlined

in the significant accounting principles note disclosure to Interoil's financial statements for 2016. The new IFRS 15 determines a change in the way

Interoil recognizes and presents revenues, costs and oil working interest participation. As from 1Q 2018 partners participation not paid in kind is

recognized separately as revenue and cost, this also effects Interoil’s working interest production.

The condensed interim financial information provides, in the opinion of management, a fair presentation of the financial position, results of operations

and cash flows for the dates and periods covered. Interim period results are not necessarily indicative of results of operations or cash flows for an

annual period.

The condensed interim financial information is unaudited.


Note 3. Segment information

For the 3 months period ended 31 March 2018 (Unaudited)

Amounts in USD 1 000 Colombia Norway

Unall. / Elimin.

Group (continuing

business)

Total revenue 6,156 276 -276 6,156

Cost of goods sold ex depreciation -2,531 - - -2,531

Depreciation -2,273 - - -2,273

Gross profit 1,352 276 -276 -1,352

Exploration cost expensed -181 - - -181

Administrative expense -768 -274 276 -766

Other income 390 - - 390

Result from operating activities 793 2 - 795

Finance income 39 597 -596 40

Finance costs -601 -1,262 596 -1,267

Loss before income tax 231 -663 - -432

Income tax expense 153 - - 153

Loss for the period 384 -663 - -279

Other comprehensive Income - - - -

Total comprehensive income net of tax 384 -663 - -279

For the 3 months period ended 31 March 2017 (Unaudited)


Unall. / Elimin.

Group (continuing

business)

Total revenue 3,705 120 -120 3,705



Gross profit 907 120 -120 907

Exploration cost expensed -179 - - -179

Administrative expense -894 -239 120 -1,013

Other income 143 - - 143

Result from operating activities -23 -119 - -142


Finance costs -564 -1,002 593 -973

Loss before income tax -539 -525 - -1,064

Income tax expense -317 - - -317

Loss for the period -856 -525 - -1,381

Other comprehensive Income - - - -

Total comprehensive income net of tax -856 -525 - -1,381


For the 3 months period ended 31 December 2017 (Unaudited)


Unall. / Elimin.

Group (continuing

business)

Total revenue 5,325 264 -264 5,325


Depreciation -805 - - -805

Gross profit 2,728 264 -264 2,728

Exploration cost expensed -1,364 - - -1,364

Administrative expense -933 -111 264 -780

Other income -397 - - -397

Result from operating activities 34 153 264 187


Finance costs -647 -1,074 635 -1,086

Loss before income tax -368 -286 - -654

Income tax expense -108 - - -108

Loss for the period -476 -286 - -762

Other comprehensive Income -10 - - -10

Total comprehensive income net of tax -486 -286 - -772

For the 12 months period ended 31 December 2017 (Audited)


Unall. / Elimin.

Group (continuing

business

Total Revenue 16,602 659 -659 16,602



Gross profit 5,092 659 -659 5,092

Exploration cost expensed -1,914 - - -1,914

Administrative expense -4,018 -810 659 -4,169

Other income -207 -400 - -607

Result from operating activities -1,047 -551 - -1,598

Finance income 639 2 477 -2,465 651

Finance costs -2,284 -4 191 2,465 -4,008

Loss before income tax -2,692 -2 265 - -4,955

Income tax expense -1,263 - - -1,263

Loss for the period -3,955 -2 265 - -6,219

Other comprehensive Income -10 - - -10

Total comprehensive income net of tax -4,005 -2 265 - -6,229

208


Note 4. Sales and royalty


For the 3 months period ended 31

March 2018

For the 3 months period ended 31 December 2017


March 2017


Sale of oil

Sale of oil – before royalty* 5,567 4,337 2,607 12,336

Royalty -328 -335 -211 -976

Sale of oil – net 5,239 4,002 2,396 11,360

Sale of gas 466 635 641 2,494

Sale of services 451 688 668 2,748

Total sales 6,156 5,325 3,705 16,602

* Sales in 1Q 2018 includes 1.3 million corresponding to a non-kind partners participation; this affects comparability with 2017

figures.

Note 5. Cost of goods sold



March 2018



March 2017


Cost of goods sold

Lifting costs 1,798 1,595 1,144 5,369

Changes in inventory -154 13 -86 -1

Other cost of goods sold * 887 184 - 250

Total cost of goods sold 2,531 1,792 1,058 5,618

Depreciation 1,643 805 1,740 5,756

Lifting costs,

specifications:

Field production costs 831 848 584 2,879

Tariffs and transportation 503 507 291 1,532

Insurance 29 25 40 115

Production costs external consultants 180 -10 3 28

Well services and work overs 170 151 167 526

Repairs and maintenance of

installations / equipment

85 74 59 289

Total lifting costs 1,798 1,595 1,144 5,369

* Other costs in 1Q 2018 includes 0.6 million corresponding to a non-kind partners participation, this affects comparability with

2017 figures.

Gross Margin corrected by non-kind partners participation is 46% for the 1Q 2018 (51% 4Q 2017 – 24% 1Q 2017)


Note 6. Finance income and cost



March 2018



March 2017


Interest income 3 50 25 87

Realized / unrealized

exchange rate

37 195 26 564

Total financial income 40 245 51 651

Interest expenses 793 695 677 2,767

Amortisation of debt issue

cost

0 104 58 363

Realized / unrealized

exchange rate

421 244 203 717

Other financial expenses 53 43 35 161

Total financial expenses 1,267 1,086 973 4,008

Finance expenses – net -1,227 -841 -922 -3,357

Note 7. Borrowings

Amounts in USD 1 000 As of 31 March 2018 As of 31 December 2017

Non-current

Bond loan denominated USD 37,047 37,533

Other non-current interest bearing liabilities 734 702

Total non-current interest bearing liabilities 37,781 38,235

Current

Liabilities to financial institutions 2,169 1,973

Other non-current interest bearing liabilities 110 1,049

Total current interest bearing liabilities 2,279 3,022

Total interest bearing liabilities 40,060 41,257

The maturity of the Group’s borrowings is as follows

Amounts in USD 1000

As of 31 March 2018 As of 31 December 2017

0-12 months 2,279 3,022

Between 1 and 2 years 37,168 89

Between 2 and 5 years 479 37,875

Over 5 years 134 271

Total borrowings 40,060 41,257


Bank loans USD 2,1 million

The Colombian branch has short term facilities with Banco de Occidente. The loans are secured with a USD 1 million cash collateral. The

facilities are due to expire in May and December 2018. The facilites bears local IBR interest + margin from 4 to 4,5%.

Leasing USD 0,8 million

The Colombian branch has a leasing contract with Banco de Occidente for the offices in Bogota. The office was bought in 2016, sold to

Banco de Occidente and leased back in 2017.

Bond loan USD 32 million

The Group issued a 5 year Senior Secured bond loan with a total loan amount of USD 32 million on 22 January 2015. The bond loan will mature on 22 January 2020. The bond loan shall be repaid at the final maturity date at 100 % of par value, plus accrued and unpaid interest. The issuer may redeem the bonds in whole or in part at 105 % of face value plus accrued unpaid interest on the redeemed amount. The bonds have a nominal value of USD 1, and carry a fixed rate interest of 6.00 % payable semi-annually in arrears. The issuer may make the interest payment in kind (PIK) up to the interest payment date in January 2017. The PIK interest will be capitalised at an effective rate of interest of 8,00% per annum. In July 2017, the Company paid interest of USD 1,123 million. The bond loan recognised in the statement of financial position is calculated as follows:


Bond loan at issue date, 22 January 2015 32,000

PIK interest 5,436

Accrued interest 424

Borrowing costs (fees and legal expenses) -696

Amortisation of debt issue cost -117

Balance at 31 December 2017 37,047

Note 8. Tax



March 2018



March 2017



Current income tax:

Current income tax charge 576 113 98 -1,618

Deferred tax:

Relating to origination and reversal of

temporary differences -729 -5 219 793

Income tax expense/(credit) -153 108 317 -825


Note 9. Production and sales of oil in barrels *


March 2018



March 2017



Production in barrels

Working interest, barrels 87,922 94 480 53,911 269,781

Working interest, gas (boe) 28,251 30 572 34,699 130,891

Royalty -8,842 -9 515 -6,534 -29,960

Total production in barrels – net of royalty 107,332 115 539 82,076 370,713

Sale of oil in barrels

Sale of oil, barrels working interest 82,696 91,581 48,983 253,301

Oil royalties sold 3,482 3,871 - 5,462

Total sale in barrels – net of royalty 79,215 87,710 48,983 247,839

Sale of gas in boe

Sale of gas, boe working interest 28,252 30,572 34,699 130,891

Gas royalties sold 1,808 1,957 2,221 8,377

Total sale in barrels – net of royalty 26,443 28,616 32,478 122,514

Total sales in boe – net of royalty 105,658 116,325 81,461 370,533

* 2017 oil figures (net working and sold barrels) were recalculated to make it comparable with 2018 figures based on IFRS 15

requirements.

INTEROIL EXPLORATION AND PRODUCTION ASA

c/o Advokatfirmaet Schjødt AS Ruseløkkveien 14

0251 Oslo, NORWAY

WWW.INTEROIL.NO

Documents

Report for the first quarter 2018 - hugin.infohugin.info/137537/R/2195750/852324.pdf · with positive pumps, such as the widely renowned rod sucker type of pumps. This study is to