Interoil Q2 2020 interim financial report
Interoil Exploration and Production ASA is pleased to release its Q2 2020 interim financial report
Highlights in the quarter
• The COVID-19 pandemic had a major shock on the oil industry. In the case of Interoil that effect has impacted in its figures due to the fall of prices and decreased volumes.
• Gross production decreased by 67.5 % in Q2 2020 compared with Q1 2020 and 66.9% with the same period of last year.
• Interoil’s EBITDA in Q2 2020 was negative USD 0.6 million, compared with a positive USD 0.9 in Q1 2020 and positive USD 2.1 in Q2 2019. Variation is related to a lower production, due to the halt of operations both in Mana and Vikingo and the collapse of the oil and gas prices.
• During the past months, Interoil went through a rightsizing process of its operations, staff and obligations in order to cope with the challenge of the new market conditions.
• On April 2020 Interoil received a notification from Turgas, our sole gas off-taker for the Mana and Ambrosia fields, that excess pressure was building in some points of the main trunk line. This forced Interoil to shut in all producing wells in those fields, affecting not only gas but also oil production.
• On April 7, 2020, the ANH issued Agreement 002/2020 (Acuerdo 002/2020) setting forth a framework of measures aimed at mitigating the impact of the emergency on companies with contracts with the ANH, including the extension of terms for exploration activities and the transfer of commitments between contracts with the ANH, among others. The Company applied for an extension of terms of 12 months both for Altair and LLA-47. The ANH granted to the Company the extension requested for Altair.
• On May 2020, Turgas notified Interoil that it would resume gas off-takings and Interoil restarted its deliveries accordingly.
• On May 2020, Interoil decided to temporarily close production at Vikingo as it was not economically viable with the prevailing oil price.
• On May 26 2020, the Company has agreed on a new credit line facility worth USD 1.8 million and with a term of 19 months.
• On June 8, Interoil declared and filed-in the commerciality of the Vikingo well with the E&P Colombian Authority ANH (Agencia Nacional de Hidrocaburos)
For more information, please see attached Q2 2020 interim report.
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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 and Argentina. The company is operator of several production and exploration assets in Colombia and Argentina. Interoil currently employs approximately 50 people and is headquartered in Oslo.
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
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