Report for the second quarter and first half of 2024
August 29, 2024
Highlights in the period
Interoil’s net production in the first six months of 2024 was 100 334 barrels of oil equivalents (boe), as compared to 54,310 boe in the same period in 2023. Revenues were USD 7.9 million compared with USD 3.4 million in the corresponding period the previous year. This increases come mostly from the acquisition of an additional 43% stake in the Santa Cruz (Argentina) assets in June 2023.
EBITDA in the first half of 2024 was USD 4.3 million, compared with USD -0.1 million in the same period of 2023.
In 2024 Interoil Argentina entered into a new commercial agreement with Compañia General de Combustibles (CGC), one of the biggest O&G companies in Argentina, which operates the Loyola Port facilities, nearby Interoil O&G fields. This new commercial contract provides Interoil an alternative and profitable spot to deliver crude oil minimizing freight and increasing prices by up to USD 10/bbl compared to previous destinations.
In Argentina, the decrease in operated production stems mainly from the Santa Cruz fields, where harsh winter conditions impacted the Patagonian region with temperatures reaching 20°C below zero. These events blocked national routes and oilfield paths, and the local authorities issued roadblocks as a safety measure, making it difficult to access services and materials to the operations. The pulling rig in some oilfields had to be postponed, due to road access impediments and safety considerations.
Subsequent events
In Colombia, the Company is working with local communities in the Puli C surroundings aiming to grant their approval to initiate a pulling campaign to recover at least 100 bpd of oil and 500 Kscfpd of gas outflows.
In Argentina, extreme weather conditions continued during July and August, postponing the recovery of production to previous levels. Currently, two out of three gas plants have resumed operations, while evacuation of crude stored in oil tanks begins to accelerate to make room for production increase.
As occurred in the latest two prior Bond interest payment instances, in July, and on the Company’s request, bondholders approved amendments to the bond terms to settle the full July 2024 interest payment in kind by issuing and delivering additional bonds. This enables the Company to focus funds in necessary investments in its operations both in Colombia and Argentina to recover production levels.
Interoil Colombia has reached an agreement with the ANH to terminate the LLA-47 Contract, subject to ANH Committee, corporate and Bondholders approval. This termination is partial as it only concerns the exploration activities, commitments and area, retaining Interoil Colombia the production well Vikingo until the end of its economic life. The termination is based upon the impossibility for Interoil to carry out exploration activities in the block due to community opposition and shall be made without penalties or compensation to be paid by Interoil. The Company has summoned the Bondholders of the Company’ bonds for a written resolution approving the transaction, which is at present pending.
Please see the attached Report for the second quarter and first half of 2024 for more details and the financial statements.
Please direct any further questions to: ir@interoil.no (mailto:ir@interoil.no)
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Interoil Exploration and Production ASA is a Norwegian based exploration and production company - listed on the Oslo Stock Exchange with focus on Latin America. The Company is operator and license holder of several production and exploration assets in Colombia and Argentina with headquarter in Oslo.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
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