InterOil 2014 First Quarter Results
Milestones Reached, Exploration Starts
- Elk-Antelope deal completed with Total S.A.
- $340.5m one-off gain on Total transaction
- New leadership team in place
- Drilling under way on new exploration licenses
SINGAPORE and PORT MORESBY, Papua New Guinea, May 14, 2014 /PRNewswire/ -- InterOil Corporation (NYSE:IOC; POMSoX:IOC) (the "company") today announced a 2014 first quarter net profit of $318.6 million, due mainly to a one-off $340.5 million gain from the sale of an interest in PRL 15 to Total S.A. of France on March 26, 20141.
The profit, up from $4.0 million in the first quarter of 2013, is underpinning aggressive exploration drilling across the four petroleum prospecting licenses ("PPLs") awarded to InterOil in March by the Papua New Guinea Government.
The licenses, which are valid for six years and renewable for a further five, cover almost 4 million acres (or 16,000 square kilometres) in the Gulf Province. Drilling began in early March, and initial results are expected in the next several weeks.
Targets achieved, focus now on exploration
The company in January appointed a new senior leadership team. Jon Ozturgut was named Chief Operating Officer and Don Spector was named Chief Financial Officer.
InterOil's Chief Executive, Dr. Michael Hession, said: "We achieved several ambitious targets this quarter: a new leadership team in place, the granting of new exploration licenses and completion of the Total deal. We accomplished what we set out to do. Our strategy is on track. We remain focused on adding value, particularly through the drill bit, which is something we do well. We have a busy, exciting program ahead, and the financial capacity to deliver it."
InterOil's Chief Financial Officer, Don Spector, said: "This quarter saw the achievement of a major milestone in the history of our company. Closing the deal with Total and the receipt of the $401.3 million completion payment has significantly strengthened our balance sheet, providing the funds we require for our drilling program. Despite slower retail and wholesale demand in Papua New Guinea coupled with a weakening PNG kina, our refinery enjoyed higher margins driving a small, but positive net profit. Our downstream business saw a drop in volume sold but continued to enjoy a stable $6.0 million net profit. We intend to secure additional flexibility in our capital structure by refinancing our $250 million secured loan facility in the coming weeks."
Local sales reflect slowing PNG economy
Revenue decreased by $39.2 million to $311.1 million in Q1 2014 from $350.3 million in Q1 2013, mainly due to lower sales volumes during the quarter. The total volume of all products we sold was 1.9 million barrels compared with 2.4 million in Q1 2013, mainly due to the timing of refinery exports.
The PNG economy continued to slow in Q1 2014 as the PNG LNG Project neared completion. The total local sales volume for the quarter was 1.2 million barrels, a decrease of 0.1 million barrels, or 9.5%, on Q1 2013.
InterOil's Port Moresby refinery processed 1.829 million barrels into product in Q1 2014, compared with 2.389 million for Q1 2013. Average daily throughput (excluding shutdowns) was 26,717 bblspd compared to 27,525 bblspd in Q1 2013.
InterOil provided petroleum products to 52 retail service stations, 18 depots, and 12 aviation sites – the largest retail distribution system in the country – and the company continues to invest in new retail sites and new retail fuel distribution systems.
Total agreement provides solid financial base
On March 26, 2014, Total acquired a gross participating interest of 40.1275% (net 31.0988%, after PNG government back-in of 22.5%) in PRL 15, which contains the Elk-Antelope gas field. InterOil is entitled to additional fixed and variable resource payments at certain milestones following appraisal of the fields.
Total will provide a 75% carry on the first $50 million (gross) per well for the first three appraisal wells and on the first $60 million (gross) for the single exploration well in PRL 15. Certification of Elk-Antelope resource volumes is expected in 2015.
Total has agreed to lead construction and operation of a proposed integrated LNG project. The final investment decision will follow resource certification, concept selection, basis of design, and front-end engineering and design.
Drilling underway
On March 6, 2014, the Papua New Guinea Government granted InterOil four new PPLs, covering the same area as the company's previous licenses.
The company continued acquiring seismic over Triceratops east, south-west Antelope and across two new prospects, Bobcat in PPL 476 and Antelope Deep (formerly Big Horn) in PRL 15.
In March, 2014, InterOil began drilling an exploration well in each of PPL 474 (Wahoo-1), PPL 475 (Raptor-1) and PPL 476 (Bobcat-1). A fourth exploration well, Antelope Deep, is expected to begin in PRL 15 in early 2015, and an appraisal well, Triceratops-3, in PRL 39, is planned to begin in late 2014.
Financial highlights
- Investments in Upstream and Midstream Liquefaction resulted in a net profit of $310.0 million (2013 net loss of $14.5 million). Corporate, Refining and Downstream collectively derived a net profit for the quarter of $8.6 million (2013 net profit of $18.5 million). The consolidated net profit for the current quarter was $318.6 million, compared to a $4.0 million profit in the first quarter of 2013. The variance was mainly driven by a $340.5 million gain from the sale of an interest in PRL 15 to Total on March 26, 2014.
- At March 31, 2014, InterOil had cash, cash equivalents and cash restricted totalling $482.2 million (March 31, 2013 – $107.4 million), of which $61.5 million is restricted (March 31, 2013 – $38.9 million). In addition, aggregate undrawn facilities were $296.6 million, including $100 million in a Credit Suisse facility to fund the current exploration. InterOil is planning to refinance the total $250 million Credit Suisse facility with a new longer term facility with improved terms in the coming weeks. InterOil's gearing, measured by the debt-to-capital ratio, was 22% in March 31, 2014 against 19% in March 2013.
Conference call information
The full text of the news release and accompanying financials are available on the company's website at www.interoil.com.
A conference call will be held on May 14, 2014 at 8:00am US Eastern time (8:00pm Singapore) to discuss the financial and operating results, development of PRL15, the new drilling program, and the company's outlook.
The conference call can be heard through a live audio web cast on the company's website at www.interoil.com or accessed by dialing (800) 230 1092 in the US, or +1 (612) 288 0340 from outside the US.
A replay of the broadcast will be available soon afterwards on the website.
| Summary of Consolidated Quarterly Financial Results for Past Eight Quarters |
||||||||
| Quarters ended |
2014 |
2013 |
2012 |
|||||
| Mar-31 |
Dec-31 |
Sep-30 |
Jun-30 |
Mar-31 |
Dec-31 |
Sep-30 |
Jun-30 |
|
| Upstream |
2,823 |
1,731 |
1,918 |
2,533 |
1,862 |
4,136 |
2,216 |
1,727 |
| Midstream – Refining |
249,487 |
353,749 |
251,725 |
289,300 |
305,172 |
301,925 |
274,671 |
236,006 |
| Midstream – Liquefaction |
- |
181 |
- |
20,089 |
- |
- |
- |
- |
| Downstream |
212,720 |
213,835 |
215,651 |
199,470 |
208,046 |
220,512 |
201,749 |
223,620 |
| Corporate |
32,481 |
31,832 |
31,714 |
36,201 |
34,923 |
37,552 |
26,880 |
24,742 |
| Consolidation entries |
(186,431) |
(202,426) |
(195,773) |
(201,932) |
(199,672) |
(207,686) |
(178,652) |
(186,991) |
| Total revenues |
311,080 |
398,902 |
305,235 |
345,661 |
350,331 |
356,439 |
326,864 |
299,104 |
| Upstream |
324,380 |
(19,974) |
(2,842) |
(19,478) |
(1,311) |
(873) |
956 |
(5,730) |
| Midstream – Refining |
5,988 |
10,246 |
(3,562) |
840 |
12,701 |
12,370 |
13,417 |
(42,647) |
| Midstream – Liquefaction |
(63) |
87 |
2,550 |
19,850 |
(123) |
192 |
11 |
672 |
| Downstream |
10,141 |
14,366 |
14,962 |
7,542 |
10,062 |
12,258 |
9,275 |
11,102 |
| Corporate |
2,223 |
6,055 |
13,446 |
1,745 |
10,044 |
14,133 |
9,841 |
9,975 |
| Consolidation entries |
(9,375) |
(16,082) |
(14,647) |
(11,146) |
(13,418) |
(12,199) |
(14,503) |
(9,871) |
| EBITDA (1) |
333,294 |
(5,302) |
9,907 |
(647) |
17,955 |
25,881 |
18,997 |
(36,499) |
| Upstream |
310,567 |
(33,535) |
(16,206) |
(32,046) |
(13,774) |
(13,081) |
(10,936) |
(15,532) |
| Midstream – Refining |
601 |
74 |
(11,074) |
(4,675) |
5,855 |
13,401 |
5,358 |
(32,969) |
| Midstream – Liquefaction |
(555) |
(430) |
2,373 |
19,284 |
(681) |
(394) |
(573) |
93 |
| Downstream |
6,013 |
9,237 |
9,435 |
4,346 |
6,005 |
7,716 |
5,626 |
6,045 |
| Corporate |
(684) |
2,787 |
10,780 |
(1,701) |
7,342 |
10,519 |
7,849 |
8,445 |
| Consolidation entries |
2,694 |
(2,946) |
(1,626) |
1,562 |
(744) |
384 |
(1,988) |
2,205 |
| Net profit/(loss) |
318,636 |
(24,813) |
(6,318) |
(13,230) |
4,003 |
18,545 |
5,336 |
(31,713) |
| Net profit/(loss) per share (dollars) |
||||||||
| Per Share – Basic |
6.45 |
(0.51) |
(0.13) |
(0.27) |
0.08 |
0.38 |
0.11 |
(0.66) |
| Per Share – Diluted |
6.38 |
(0.51) |
(0.13) |
(0.27) |
0.08 |
0.38 |
0.11 |
(0.66) |
| InterOil Corporation |
||||
| Consolidated Balance Sheets |
||||
| (Unaudited, Expressed in United States dollars) |
||||
| As at |
||||
| March 31, |
December 31, |
March 31, |
||
| 2014 |
2013 |
2013 |
||
| $ |
$ |
$ |
||
| Assets |
||||
| Current assets: |
||||
| Cash and cash equivalents |
420,668,190 |
61,966,539 |
68,461,627 |
|
| Cash restricted |
32,402,896 |
36,149,544 |
27,256,734 |
|
| Trade and other receivables |
66,634,767 |
98,638,110 |
150,718,608 |
|
| Derivative financial instruments |
53,313 |
- |
372,938 |
|
| Other current assets |
1,175,741 |
1,054,847 |
2,333,691 |
|
| Inventories (note 5) |
189,979,031 |
158,119,181 |
207,979,187 |
|
| Prepaid expenses |
7,067,916 |
8,125,270 |
6,043,515 |
|
| Total current assets |
717,981,854 |
364,053,491 |
463,166,300 |
|
| Non-current assets: |
||||
| Cash restricted |
29,114,776 |
17,065,000 |
11,670,536 |
|
| Plant and equipment |
244,291,146 |
244,383,962 |
253,122,122 |
|
| Oil and gas properties (note 6) |
98,102,235 |
584,807,023 |
544,934,617 |
|
| Deferred tax assets |
48,558,269 |
48,230,688 |
62,399,028 |
|
| Other non-current receivables (note 7) |
581,593,476 |
29,700,534 |
29,700,534 |
|
| Investments accounted for using the equity method |
17,547,023 |
17,557,838 |
- |
|
| Available-for-sale investments |
- |
- |
3,587,901 |
|
| Total non-current assets |
1,019,206,925 |
941,745,045 |
905,414,738 |
|
| Total assets |
1,737,188,779 |
1,305,798,536 |
1,368,581,038 |
|
| Liabilities and shareholders' equity |
||||
| Current liabilities: |
||||
| Trade and other payables |
182,991,664 |
134,027,347 |
224,733,505 |
|
| Income tax payable |
19,908,377 |
17,087,974 |
15,583,344 |
|
| Derivative financial instruments |
- |
1,869,253 |
9,913 |
|
| Working capital facilities (note 8) |
12,658,495 |
36,379,031 |
34,297,296 |
|
| Unsecured loan and current portion of secured loans (note 9) |
199,814,163 |
134,775,077 |
31,379,982 |
|
| Current portion of Indirect participation interest (note 10) |
7,449,409 |
12,097,363 |
15,246,397 |
|
| Total current liabilities |
422,822,108 |
336,236,045 |
321,250,437 |
|
| Non-current liabilities: |
||||
| Secured loans (note 9) |
53,386,003 |
65,681,425 |
87,495,705 |
|
| 2.75% convertible notes liability |
63,601,172 |
62,662,628 |
59,930,967 |
|
| Deferred gain on contributions to LNG project |
- |
- |
5,287,152 |
|
| Indirect participation interest (note 10) |
- |
7,449,409 |
14,282,001 |
|
| Other non-current liabilities (note 11) |
96,752,001 |
96,000,000 |
96,000,000 |
|
| Asset retirement obligations |
5,044,158 |
4,948,017 |
4,983,064 |
|
| Total non-current liabilities |
218,783,334 |
236,741,479 |
267,978,889 |
|
| Total liabilities |
641,605,442 |
572,977,524 |
589,229,326 |
|
| Equity: |
||||
| Equity attributable to owners of InterOil Corporation: |
||||
| Share capital (note 12) |
998,660,596 |
953,882,273 |
931,990,521 |
|
| Authorized - unlimited |
||||
| Issued and outstanding - 50,022,600 |
||||
| (Dec 31, 2013 - 49,217,242) |
||||
| (Mar 31, 2013 - 48,652,640) |
||||
| 2.75% convertible notes |
14,297,627 |
14,297,627 |
14,298,036 |
|
| Contributed surplus |
26,736,901 |
26,418,658 |
32,632,412 |
|
| Accumulated Other Comprehensive Income |
3,571,209 |
4,541,913 |
22,389,537 |
|
| Accumulated earnings/(deficit) |
52,317,004 |
(266,319,459) |
(221,958,794) |
|
| Total equity attributable to owners of InterOil Corporation |
1,095,583,337 |
732,821,012 |
779,351,712 |
|
| Non-controlling interest |
- |
- |
- |
|
| Total equity |
1,095,583,337 |
732,821,012 |
779,351,712 |
|
| Total liabilities and equity |
1,737,188,779 |
1,305,798,536 |
1,368,581,038 |
|
| See accompanying notes to the condensed consolidated interim financial statements |
||||
| InterOil Corporation |
||
| Consolidated Income Statements |
||
| (Unaudited, Expressed in United States dollars) |
||
| Quarter ended |
||
| March 31, |
March 31, |
|
| 2014 |
2013 |
|
| $ |
$ |
|
| Revenue |
||
| Sales and operating revenues |
308,222,594 |
349,323,775 |
| Interest |
54,284 |
15,003 |
| Other |
2,802,542 |
992,226 |
| 311,079,420 |
350,331,004 |
|
| Changes in inventories of finished goods and work in progress |
(18,000,156) |
13,107,848 |
| Raw materials and consumables used |
(252,714,016) |
(327,866,604) |
| Administrative and general expenses |
(15,036,132) |
(8,465,554) |
| Derivative gains/(losses) |
934,930 |
(470,955) |
| Legal and professional fees |
(2,860,389) |
(1,815,875) |
| Exploration costs, excluding exploration impairment (note 6) |
(8,696,289) |
(449,505) |
| Finance costs |
(13,865,715) |
(5,336,234) |
| Depreciation and amortization |
(5,479,476) |
(5,698,142) |
| Gain on conveyance of oil and gas properties (note 6) |
340,540,011 |
500,071 |
| Loss on available-for-sale investment |
- |
(340,045) |
| Foreign exchange losses |
(14,302,321) |
(5,476,146) |
| Share of net loss of joint venture partnership accounted |
(10,815) |
(96,051) |
| 10,509,632 |
(342,407,192) |
|
| Profit before income taxes |
321,589,052 |
7,923,812 |
| Income taxes |
||
| Current tax expense |
(3,256,981) |
(3,829,598) |
| Deferred tax benefit/(expense) |
304,392 |
(91,496) |
| (2,952,589) |
(3,921,094) |
|
| Profit for the period |
318,636,463 |
4,002,718 |
| Profit is attributable to: |
||
| Owners of InterOil Corporation |
318,636,463 |
4,002,718 |
| 318,636,463 |
4,002,718 |
|
| Basic profit per share |
6.45 |
0.08 |
| Diluted profit per share |
6.38 |
0.08 |
| Weighted average number of common shares outstanding |
||
| Basic (Expressed in number of common shares) |
49,368,378 |
48,612,015 |
| Diluted (Expressed in number of common shares) |
50,200,242 |
49,284,136 |
| See accompanying notes to the condensed consolidated interim financial statements |
||
| InterOil Corporation |
|||
| Consolidated Statements of Comprehensive Income |
|||
| (Unaudited, Expressed in United States dollars) |
|||
| Quarter ended |
|||
| March 31, |
March 31, |
||
| 2014 |
2013 |
||
| $ |
$ |
||
| Profit for the period |
318,636,463 |
4,002,718 |
|
| Other comprehensive (loss)/income: |
|||
| Items that may be reclassified to profit or loss: |
|||
| Exchange loss on translation of foreign operations, net of tax |
(970,704) |
(2,267,186) |
|
| Loss on available-for-sale financial assets, net of tax |
- |
(376,230) |
|
| Other comprehensive loss for the period, net of tax |
(970,704) |
(2,643,416) |
|
| Total comprehensive income for the period |
317,665,759 |
1,359,302 |
|
| Total comprehensive income for the period is attributable to: |
|||
| Owners of InterOil Corporation |
317,665,759 |
1,359,302 |
|
| 317,665,759 |
1,359,302 |
||
| See accompanying notes to the condensed consolidated interim financial statements |
|||
| InterOil Corporation |
|||
| Consolidated Statements of Changes in Equity |
|||
| (Unaudited, Expressed in United States dollars) |
|||
| Quarter ended |
|||
| March 31, |
March 31, |
||
| 2014 |
2013 |
||
| Transactions with owners as owners: |
$ |
$ |
|
| Share capital |
|||
| At beginning of period |
953,882,273 |
928,659,756 |
|
| Issue of capital stock (note 12) |
44,778,323 |
3,330,765 |
|
| At end of period |
998,660,596 |
931,990,521 |
|
| 2.75% convertible notes |
|||
| At beginning and end of period |
14,297,627 |
14,298,036 |
|
| Contributed surplus |
|||
| At beginning of period |
26,418,658 |
21,876,853 |
|
| Fair value of options and restricted stock transferred to share capital |
(1,515,695) |
(3,902,303) |
|
| Stock compensation expense |
1,833,938 |
2,506,982 |
|
| Waiver of all remaining IPI conversion options |
- |
12,150,880 |
|
| At end of period |
26,736,901 |
32,632,412 |
|
| Accumulated Other Comprehensive Income |
|||
| Foreign currency translation reserve |
|||
| At beginning of period |
4,541,913 |
24,787,128 |
|
| Foreign currency translation movement for the period, net of tax |
(970,704) |
(2,267,186) |
|
| Foreign currency translation reserve at end of period |
3,571,209 |
22,519,942 |
|
| Gain/(loss) on available-for-sale financial assets |
|||
| At beginning of period |
- |
245,825 |
|
| Loss on available-for-sale financial assets as a result of foreign currency translation, net of tax |
- |
(172,253) |
|
| Loss on revaluation of available-for-sale financial assets, net of tax |
- |
(203,977) |
|
| Loss on available-for-sale financial assets at end of period |
- |
(130,405) |
|
| Accumulated other comprehensive income at end of period |
3,571,209 |
22,389,537 |
|
| Conversion options |
|||
| At beginning of period |
- |
12,150,880 |
|
| Transfer of balance to contributed surplus |
- |
(12,150,880) |
|
| At end of period |
- |
- |
|
| Accumulated earnings/(deficit) |
|||
| At beginning of period |
(266,319,459) |
(225,961,512) |
|
| Net profit for the period |
318,636,463 |
4,002,718 |
|
| At end of period |
52,317,004 |
(221,958,794) |
|
| Total InterOil Corporation shareholders' equity at end of period |
1,095,583,337 |
779,351,712 |
|
| See accompanying notes to the condensed consolidated interim financial statements |
|||
| InterOil Corporation |
||
| Consolidated Statements of Cash Flows |
||
| (Unaudited, Expressed in United States dollars) |
||
| Quarter ended |
||
| March 31, |
March 31, |
|
| 2014 |
2013 |
|
| $ |
$ |
|
| Cash flows generated from (used in): |
||
| Operating activities |
||
| Net profit for the period |
318,636,463 |
4,002,718 |
| Adjustments for non-cash and non-operating transactions |
||
| Depreciation and amortization |
5,479,476 |
5,698,142 |
| Deferred tax |
(327,581) |
1,127,430 |
| Gain on conveyance of exploration assets |
(340,540,011) |
(500,071) |
| Accretion of convertible notes liability |
938,544 |
884,386 |
| Amortization of deferred financing costs |
4,808,670 |
189,435 |
| Timing difference between derivatives recognized and settled |
(1,922,566) |
(129,103) |
| Stock compensation expense, including restricted stock |
1,833,938 |
2,506,982 |
| Accretion of asset retirement obligation liability |
96,141 |
89,208 |
| Loss on Flex LNG investment |
- |
340,045 |
| Share of net (profit)/loss of joint venture partnership accounted for using the equity method |
10,815 |
96,051 |
| Unrealized foreign exchange gain |
(2,668) |
167,774 |
| Change in operating working capital |
||
| Decrease/(increase) in trade and other receivables |
23,443,367 |
(15,816,189) |
| Decrease in other current assets and prepaid expenses |
936,460 |
973,003 |
| Increase in inventories |
(32,731,446) |
(15,303,322) |
| Increase in trade and other payables |
4,096,709 |
56,256,930 |
| Net cash (used in)/generated from operating activities |
(15,243,689) |
40,583,419 |
| Investing activities |
||
| Expenditure on oil and gas properties |
(102,681,272) |
(38,386,230) |
| Proceeds from IPI cash calls |
7,870,104 |
2,188,613 |
| Expenditure on plant and equipment |
(5,386,660) |
(3,789,007) |
| Proceeds from Total for interest in PRL 15 |
401,338,497 |
- |
| (Increase)/decrease in restricted cash held as security on |
||
| borrowings |
(8,303,128) |
10,083,824 |
| Change in non-operating working capital |
||
| Increase/(decrease) in trade and other payables |
55,156,441 |
(5,799,120) |
| Net cash used in investing activities |
347,993,982 |
(35,701,920) |
| Financing activities |
||
| Repayments of Westpac secured loan |
- |
(2,143,000) |
| Repayments of BSP and Westpac secured facility |
(2,065,006) |
- |
| Proceeds from drawdown of Credit Suisse secured facility |
50,000,000 |
- |
| Proceeds from Pacific Rubiales Energy for interest in PPL237 |
- |
76,000,000 |
| (Repayments of)/proceeds from working capital facility |
(23,720,536) |
(59,993,183) |
| Proceeds from issue of common shares, net of transaction costs |
1,736,900 |
- |
| Net cash generated from financing activities |
25,951,358 |
13,863,817 |
| Increase in cash and cash equivalents |
358,701,651 |
18,745,316 |
| Cash and cash equivalents, beginning of period |
61,966,539 |
49,720,680 |
| Exchange losses on cash and cash equivalents |
- |
(4,369) |
| Cash and cash equivalents, end of period |
420,668,190 |
68,461,627 |
| Comprising of: |
||
| Cash on Deposit |
420,440,091 |
33,206,412 |
| Short Term Deposits |
228,099 |
35,255,215 |
| Total cash and cash equivalents, end of period |
420,668,190 |
68,461,627 |
| See accompanying notes to the condensed consolidated interim financial statements |
||
About InterOil
InterOil Corporation is an independent oil and gas business with a primary focus on Papua New Guinea. InterOil's assets include one of Asia's largest undeveloped gas fields, Elk-Antelope, in the Gulf Province, exploration licences covering about 16,000sqkm, Papua New Guinea's only oil refinery, and retail and commercial petroleum distribution facilities throughout the country. The company employs more than 1100 people and has its main offices in Singapore and Port Moresby. InterOil is listed on the New York and Port Moresby stock exchanges.
| Investor contacts for InterOil |
|
| Houston |
Singapore |
| Wayne Andrews, Vice President Capital Markets |
Don Spector, Chief Financial Officer |
| Phone: +1-281-292-1800 |
Phone: +65-6507-0222 |
| Meg LaSalle, Investor Relations Coordinator |
|
| Phone: +1-281-292-1800 |
|
| Media contacts for InterOil |
|
| John Hurst, Cannings |
|
| Phone: +61 418 708 663 |
Forward Looking Statements
This press release includes "forward-looking statements" as defined in United States federal and Canadian securities laws. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that InterOil expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements, which include statements as to planning for or the timing of the proposed LNG project and future exploration, are based on our current beliefs as well as assumptions made by, and information currently available to us. No assurances can be given however, that these events will occur. Actual results could differ, and the difference may be material and adverse to the Company and its shareholders. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause our actual results to differ materially from those implied or expressed by the forward-looking statements. Some of these factors include the risk factors discussed in the Company's filings with the Securities and Exchange Commission and on SEDAR, including but not limited to those in the Company's Annual Report for the year ended 31 December 2013 on Form 40-F and its Annual Information Form for the year ended 31 December 2013. In particular, there is no established market for natural gas or gas condensate in Papua New Guinea and no guarantee that gas or gas condensate from the Elk and Antelope fields will ultimately be able to be extracted and sold commercially. Investors are urged to consider closely the disclosure in the Company's Form 40-F, available from us at www.interoil.com or from the SEC at www.sec.gov and its Annual Information Form available on SEDAR at www.sedar.com.
1 Represents the accounting gain from completion and first certification payments less the carry cost of the asset
SOURCE InterOil Corporation
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