InterOil Corp. (IOC)

[locksflooring]

Report of Foreign Issuer (6-K)
Date : 02/01/2010 @ 11:29AM
Source : Edgar (US Regulatory)
Stock : (IOC)
Quote : 60.9475 1.8375 (3.11%) @ 6:33PM


- Report of Foreign Issuer (6-K)






SECURITIES AND EXCHANGE COMMISSION


WASHINGTON, D.C. 20549


FORM 6-K


REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO
RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934


For the month of February 2010


Commission File Number: 001-32179


INTEROIL CORPORATION
(Exact name of registrant as specified in its charter)


THE YUKON TERRITORY, CANADA
(State or other jurisdiction of incorporation or organization)


60-92 COOK STREET
PORTSMITH, QLD 4870, AUSTRALIA
(Address of principal executive offices)


Registrant’s telephone number, including area code: (61) 7 4046 4600


Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F Form 40-F ü

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes No ü

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):



--------------------------------------------------------------------------------


SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


INTEROIL CORPORATION



By: Anesti Dermedgoglou
Vice President Investor Relations

Date: February 1, 2010





--------------------------------------------------------------------------------




INTEROIL CORPORATION
FORM 6-K FOR THE MONTH OF FEBRUARY 2010


Exhibit Index


1) NEWS RELEASE - ANTELOPE-2 REACHES TOTAL VERTICAL DEPTH,
PREPARATIONS FOR HORIZONTAL EXTENSION UNDER WAY

[Ericus]

When I started...

to be a moderator of this board... IOC was a tiny company, only worth a lousy 10 dollars. There were bashers all over the place, who predicted this company to fail...
Look where we are now...
And this is just the beginning of a new era for PNG. This company can double or maybe quadruple the income of this country...

Much work has been done... much work has to be done but the fundamentals looks very good...

I quit this board now... It is unbelievable but this company is still not on the radar...
A few posters and followers...
Thanks Folks for your attention...
Let it be... let it be... let it be... let it be... speaking words of wisdom, let it be, let it be !

[Picassa]

Government of Papua New Guinea Signs InterOil's LNG Project Agreement

GOVERNMENT OF PAPUA NEW GUINEA TO TAKE 22.5%

[Picassa]

Want to cry here.....

I was ready to jump in IOC at 25$ back in time....

ouch.....

InterOil's Antelope-2 Well Flowed at a World Record Rate of 705 MMCFD Including 11,200 Bbls Per Day of Condensate

http://finance.yahoo.com/news/InterOils-Antelope2-Well-prnews-705869516.html?x=0&.v=1

[bdahl385]

When you drill World record wells like this PR, it's no doubt the SP will follow:

INTEROIL’S ANTELOPE-2 WELL FLOWEDATA WORLD RECORD
RATE OF 705 MMCFD INCLUDING 11,200BBLS PER DAY OF
CONDENSATE

December 1, 2009 --Houston, Texas and Cairns, Australia -InterOil Corporation
(NYSE: IOC) (POMSoX: IOC) today announcedthatits Antelope-2 well flowed at 705million
cubic feet of natural gas per day (MMCFD) including11,200barrels of condensate per day (BCPD)
for a total 129,000barrels of oil equivalent per day (BOEPD). The surface flowing tubing pressure
was1,258 psi through a 6.0inchcapacity choke that was opened to 4 3/8 inches.
The Antelope field confirms Papua New Guineaas a world class gas resource base in close
proximity to the largest and most well developed LNG market in the world.The Antelope-2and
previous wells, have confirmed over 1.2 Bcf/dof productivecapacity.Additionally the condensate
ratio established at the top of the Antelope reservoir further enhancesthe economic viability of the
proposed condensate stripping facility. Updated third party resource estimateswill bereleased
whencompleted.

[Stock]

this stock has been an awesome gainer

[Ericus]

This new presentation tells it all:
http://www.interoil.com/presentation/2009-11-19_Presentation_Bernstein_Asia_Pac_E_CC_final.pdf

[Ericus]

Nope... not a second chance...

[WallSt_Wolf]

It definitely looks like a run coming. 63.00 thou, let's hope.

[Ericus]

target: $63,00

Maybe, there is a chance for a second entry...

[Picassa]

Just blow the 40$ resistance....

I missed it....

:(

[Picassa]

IOC finally explode.

I'm not in but this a clear long term winner.

Enricus, congratulations !

[Ericus]

InterOil's Antelope-2 Well Encounters Top of Limestone Higher Than Pre-Drill Estimates
http://finance.yahoo.com/q/h?s=ioc

[GuruTrader]

InterOil Announces Changes to Participation Interests in the Elk/Antelope Field
Press Release
Source: InterOil Corporation
On Wednesday September 16, 2009, 8:00 am EDT
Buzz up! 0 Print.Companies:Interoil Corp.
HOUSTON and CAIRNS, Australia, Sept. 16 /PRNewswire-FirstCall/ -- InterOil Corporation (NYSE: IOC - News; POMSoX: IOC) today announced two transactions concerning participation interests in the Elk/Antelope field. In the first transaction (which remains subject to customary closing conditions), InterOil has agreed to acquire indirect participation interests held by a number of investors under the Amended and Restated Indirect Participation Interest Agreement dated February 2005 (the "IPI Agreement"). The interests being acquired total 4.3364% participation in the Elk/Antelope field and in any future discoveries made as a result of four exploration wells still to be drilled under the IPI Agreement. In exchange for these interests, InterOil will issue common shares in two tranches with a value of approximately $56.5 million, equal to twice the total amount of the capital contributions made under the IPI Agreement to date in respect of the interests being acquired. The first tranche, in exchange for 35% of the transferred interests, involves the issue of a number of common shares derived by dividing the value of $19,767,865 by a volume weighted average price. The remaining 65% will be exchanged for an amount of shares derived by dividing $36,711,750 by a further 10 day volume weighted average price (subject to an agreed floor price) determined prior to the final closing date, which is to occur towards the end of the year.

The second transaction is with Clarion Finanz A.G., a Swiss investment firm with existing ownership interests in InterOil's common stock, indirect participation interests under the IPI Agreement and, through its affiliate Pacific LNG Operations Limited, half of the voting and economic interests in PNG LNG Inc, the joint venture entity formed to develop the LNG processing plant in Papua New Guinea. Clarion has acquired a 2.5% direct working interest in gas and condensate in the Elk/Antelope field in furtherance of the option granted to it and announced by InterOil on May 24, 2007. The direct interest was acquired in exchange for a total of $25 million, together with the transfer to InterOil of 2.5% of Pacific LNG's economic interest in the joint venture LNG Project, and payment of certain historical costs incurred in exploring the Elk/Antelope field.

Upon closing of the two transactions, InterOil's current direct interest in its exploration licenses will increase from 71.825% to 73.6614%, excluding the interests of the Independent State of Papua New Guinea able to be taken up under relevant oil and gas legislation.

"The net result of these transactions is value accretive," stated InterOil CEO, Mr. Phil Mulacek. "InterOil has gone to great lengths to ensure that it retains a significant percentage holding in, and operatorship over, its licenses from which significant future value is expected to be derived. We appreciate the financial support provided by these investors and the important funding role played by them as we develop our exploration portfolio."

COMPANY DESCRIPTION

InterOil Corporation is developing a vertically integrated energy business whose primary focus is Papua New Guinea and the surrounding region. InterOil's assets consist of petroleum licenses covering about 4.6 million acres, an oil refinery, and retail and commercial distribution facilities, all located in Papua New Guinea. In addition, InterOil is a shareholder in a joint venture established to construct an LNG plant on a site adjacent to InterOil's refinery in Port Moresby, Papua New Guinea. InterOil's common shares trade on the NYSE in US dollars. The Company is headquartered in Cairns, Australia and has offices in Houston, Texas, Port Moresby, Papua New Guinea and Singapore.


Investor Contacts for InterOil:
Wayne Andrews Anesti Dermedgoglou
V.P. Capital Markets V.P. Investor Relations
[e-mail] [e-mail]
The Woodlands, TX USA Cairns Qld, Australia
Phone: [phone] [phone] Phone: [phone] [phone]


Media Contact for InterOil:
Ed Trissel/Andrea Priest
Joele Frank, Wilkinson Brimmer Katcher
Phone: [phone] [phone]

Forward-Looking Statements

This press release may include "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 the InterOil expects, believes or anticipates will or may occur in the future are forward-looking statements, including in particular statements concerning the development and construction of an LNG plant in Papua New Guinea, whether the transactions are accretive to InterOil, and closing of the transactions with the investors. These statements are based on certain assumptions made by the Company based on the terms of the agreement with the investors, its experience and perception of current conditions, expected future developments and other factors it believes are appropriate in the circumstances. No assurances can be given however, that these events will occur. Actual results will 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 described in the company's filings with the Securities and Exchange Commission and SEDAR, including but not limited to those in the Company's Annual Report for the year ended December 31, 2008 on Form 40-F and its Annual Information Form for the year ended December 31, 2008. In particular, there is no established market for natural gas in Papua New Guinea, and no guarantee that gas or condensate from the Elk/Antelope field 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, including, in particular the risk factors discussed in the Company's filings.

We currently have no reserves as defined in Canadian National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. All information contained herein regarding resources are references to undiscovered resources under Canadian National Instrument 51-101, whether stated or not.

[Ericus]

InterOil Issues Statement Regarding Proposed LNG Project in Papua New Guinea

Company Pleased with Support Received from Prime Minister and Minister for Petroleum and EnergyInterOil LNG Project Expected to Generate Competitive Economic Returns and Create Thousands of New Jobs and Economic Benefits for Papua New GuineaIndependent Resource Evaluations from GLJ Petroleum Consultants Ltd. and Knowledge Reservoir Provided to Papua New Guinea Officials

http://finance.yahoo.com/news/InterOil-Issues-Statement-prnews-3096485846.html?x=0&.v=1

[The Market Order]

Time to load that truck might be sooner then you think:


Recently, oil stocks peaked in early June and have been trending lower ever since. But they're rapidly approaching the oversold level.

As soon as the Bullish Percent Index drops below 10, we'll want to be ready to buy the oil stocks. It may be the best opportunity to profit off the sector this year.


http://www.growthstockwire.com/index.asp

[Ericus]

It's still an exploration company with all the risks compared with it.
The oil leg at the moment is not so huge and the impressive gascolumn is not online....
They are still investing a lot in the company to build for a bright future...

Wait and see where the drop in the shareprice will lead us and then it's time to load up the truck again or even more.
IOC is, and now more than ever, a real bargain but we have to be patient. Rollercoasters like this are quite common...

[Picassa]

IOC look terrible....

WHY ?

8:04AM InterOil updates Antelope-1 testing and completion (IOC) 31.78 : Co announces announced additional oil recovery from the most recently drilled interval from 7,891 feet to the total depth at 8,170 feet in the second side track of the Antelope-1 well. Drill Stem Test #14, performed over an interval from 7,940 feet to 8,045 feet in the second side track, recovered gas, condensate, oil and drilling fluid over the 105 foot (32 meter) open hole section. Subsequently, DST #15 performed over an interval from 8,078 feet to 8,170 feet was unsuccessful due to the downhole valve failing to open. The oil recovered in DST #14 measured in the lab within a range 33 to 43 degree API gravity.

[Ericus]

oil recovery... update

TORONTO, ONTARIO--(MARKET WIRE)--May 28, 2009 -- InterOil Corporation (NYSE:IOC - News) (POMSoX: IOC) today announced the recovery of oil from testing below the 7 inch liner in the second side track of the Antelope-1 well. Drill Stem Test (DST) #12, performed over an interval from 7,700 feet (2,347 meters) to 7,881 feet (2,402 meters) in the second side track, recovered gas, condensate and oil over the 180 foot (55 meter) open hole section. Subsequently, DST #13 was performed over an interval from 7,792 feet (2,375 meters) to 7,881 feet (2,402 meters) to isolate the oil zone from the gas bearing zone included in DST #12. DST #13, completed on May 28th, recovered oil and very little gas from this 89 foot (27 meter) interval. The oil measured 35 degree API gravity in the field. Detailed analysis of the oil samples and downhole pressures are underway.

Related Quotes
Symbol Price Change
IOC 36.79 +1.02


{"s" : "ioc","k" : "c10,l10,p20,t10","o" : "","j" : ""} DST #13 is the third test in the Antelope 1 well from which oil has been recovered. The forward plan is to drill an additional 148 feet (45 meters) then perform another DST with a view to evaluating the extent of the oil column height. Additional zones of interest may also warrant further drilling and testing contingent on the results derived from the next DST. The Company is in the early stages of evaluation and has not yet been able to determine any reasonable approximation of oil volumes, and in particular whether oil volumes would be sufficient to be commercially exploitable.

The Company is continuing to test the lower sections of the Antelope reservoir to further its understanding of the nature and volume of both condensate and oil in the reservoir and complete the original objective of testing for higher condensate-to-gas ratios and to determine the existence of an oil leg at the base of the gas column.

[TampaTradr]

It seems that the big drop that occurred was due to the distribution of shares to the debenture holders. It seems that many of them dumped shares to take a profit, but with the thin trading of this stock it whacked us! (lots of speculation about that but Raymond James confirms the suspicion in their analysts report Thursday).

I was sorry to see that the press release Thursday night did not give us a bigger pop. This is a long term hold..RJ still has "stong buy" on this one....

[Ericus]

Just a technical correction. It is true that the nature of the new oil discovery isn't THAT what the community wants, BUT we have just discovered a new gasresource and the oil is still marginal. Okay, we have to live with that, just untill the new drill will confirm the oil leg. Just wait and see...

[Picassa]

WHY THE DROP ?

[Picassa]

Even more encouraging for foreign LNG producers is the discovery of new super-giant, and world-class giant gas production zones. Overshadowing them all, is InterOil’s (IOC) recent new discovery in New Guinea, the Antelope 1 well, which likely contains ten trillion cubic feet. One well, ten TCF. Just put a liquification plant near-by and that well could supply the gas needs of several countries for many years.

http://seekingalpha.com/article/133253-natural-gas-is-heading-to-1997-levels-should-stay-there-awhile

[Ericus]

Thanks for the private reply. I hope things will become more clear with the new developments... But when ?
What concerns the HMGP board, all my posts are removed on a constant basis and immediately, so it's better and easier for you and me to contact each other on this board.
A LAST remark from me about the HMGP board:
I've given up posting there... but keep up reading the board because I owns a lot of shares in HMGP. Unfortunately I've lost almost all the value. That's the risk with unreliable pinkies and especially by following the meaning of unreliable people on dangerous boards like HMGP. Selfish people there have oneself so identified with the own ego and belief that they are not prepared and willing to listen to others anymore. That's a sad development because I was in the beginning, several years ago, very excited about the enthusiasm and information about this company. It was a very vivid board. Soon, it became clear to me that only ONE voice was allowed. The PRO- voice. Every reasonable question and remark, every doubt, every criticism of good-natured people was, is and will be ridiculised. And that's very, very wrong. It makes a board dead. It chases interesting people away !
I've tried it many, many times and everytime I was bullied. It made me very sad in the beginning and later on very mad. I had to let it go.
So... I want to talk about hmgp again only when there is interesting news and only with you.

[oilslick]

Nice to see that this held up so well in such a downer of a over all market day. Looks good!

[Picassa]

Short Interest (Shares Short) 4,785,000
Days To Cover (Short Interest Ratio) 10.0
Short Percent of Float 16.85 %
Short Interest - Prior 4,539,200
Short % Increase / Decrease 5.42 %

[Ericus]

source:
http://malumnalu.blogspot.com/2009/04/interoil-denies-cheap-gas-deal.html

[Ericus]

Interoil denies cheap gas deal 19-Apr-09 06:09 pm Sunday, April 19, 2009
InterOil denies cheap gas deal

PORT MORESBY, Sunday, April 19: INTEROIL Corporation has denied claims it has agreed to sell cheap gas to China.

A statement issued by the company said this suggestion published by a local daily newspaper on its front page last Friday is without basis and therefore “totally untrue”.

Chief executive Phil Mulacek described the claims as ‘absolute nonsense” and insulting to the government and companies of China that confirmed LNG would be expected to be purchased at market Prices.

“We regret that allegations regarding agreements signed in Beijing this week have been misrepresented in the media,” he said.

“It is a shame that so many misleading and untrue statements were published without the basic facts first being confirmed with InterOil”.

The facts were told to Minister Arthur Somare while in China and that the InterOil LNG pricing would not cause harm to the Exxon- Oil Search project.

“Those behind this rumor have no understanding of the process we are currently involved in to finance the development of the Elk and Antelope gas fields”, Mr Mulacek said.

“The truth is no ‘cheap gas’ deal has been done nor do we intend being party so such an arrangement”.

Mr Mulacek said that an historic deal had recently been signed in Beijing with the China National Offshore Oil Corporation, the nation’s largest offshore petroleum explorer.

The initial accord commits the Chinese company, InterOil and the PNG-owned Petromin Holdings to agreeing to commercial terms for the financing of the government’s stake in the $US5-billion project.

“At the moment we are seeking strategic partners from throughout the world to help underwrite and develop the project,” he said.

“The recent China deal is just one part of that process.

“Any suggestion the Beijing accord is about the sale of cheap gas is far wide of the mark”.

“It is fiction - a fantasy devoid of reality.”

Mr Mulacek said, on a positive note, the proposed development of the Elk/Antelope gas reserves would be a major windfall for the entire nation and underpinned the first train of LNG production.

“This project would create jobs and generate substantial wealth for Papua New Guinea, its government and people for many years to come,” he said.

“It has the potential to make a significant contribution to GDP and the balance of payments”.

The project involves the laying of a pipeline from the gas fields in the Gulf province and construction of a gas processing plant on land adjacent to the InterOil’s Port Moresby refinery.

It is expected that gas would begin flowing from the new facility in 2014.

“We are enormously proud of the part InterOil has played in the Liquid Niugini Limited’s LNG project so far”, Mr Mulacek said.

“That is why we are extremely disappointed when erroneous and damaging false reports about it receive currency”.

[Ericus]

China’s oil corp joins InterOil in hunt for a strategic partner
*‘Petromin committed to discuss commercial terms’ *

CHINA’s National Offshore Oil Corporation (CNOOC) will now join discussions and the process in bringing a strategic partner to the InterOil Corporation-led liquefied natural gas project.
Importantly, it will discuss terms on which it will provide a carry for Petromin PNG Holdings Ltd in respect to the financing of the State’s equity in the project.
This comes after Petromin and InterOil signed a heads of agreement (HoA) on Wednesday in Beijing, China, that was witnessed by Prime Minister Sir Michael Somare and Chinese premiere Wen Jiabao.
The HoA is for commercial cooperation with CNOOC, following official talks between Mr Wen and Sir Michael.
The occasion was viewed as one of the major achievements of Sir Michael’s visit to China.
Petromin, in a statement, said both InterOil and itself had started discussions with a number of major oil and gas companies to bring in a strategic partner to the InterOil project that would underwrite the project.
“The HoA now allows CNOOC to participate in that process,” the statement said.
“More significantly, the HoA provides for CNOOC to discuss the terms on which it will provide a carry for Petromin in respect of the financing of the State’s equity in the project.”
Petromin managing director Joshua Kalinoe said the parties were committed to quickly agree on the commercial terms for this financing and to enter into binding arrangements as soon as possible.
Mr Kalinoe said he was excited about the progress to date on the financing arrangements.
He thanked the National Government, in particular Sir Michael, for the support and the political leadership provided for the InterOil-led project in his capacity as minister responsible for Petromin.
“For Petromin and the people of Papua New Guinea, this is a major project where the benefits will flow throughout the national economy. Petromin, as the national petroleum and mining company will hold equity in the gas field and the LNG plant for the benefit of all Papua New Guineans.”
He added that CNOOC and InterOil had given undertakings to work with Petromin to assist it to build capacity and experience in all facets of the project and to create jobs, skills training and long-term economic benefits for as many Papua New Guineans.
“As an example, Petromin has the option of co-marketing the State’s share of the LNG. This will develop marketing expertise which will have on-going relevance as new oil and gas resources are located and developed.”



http://www.thenational.com.pg/041709/biz1.php

[Ericus]

Discussion goes on...
what makes it more serious. So far so good ! A deal will be made; the technical details will be worked out anyway.

A cheap gas deal

By GORETHY KENNETH

THE Government has been advised that Papua New Guinea will lose billions of kina if rumours about an InterOil led Liquid Niugini Gas Limited (LNGL) gas agreement and potential discounted sales to a Chinese buyer are correct.
In terms of the gas agreement, should these concessions be given, it will result in a substantial amount of the value of the natural gas that will be given to LNGL, with little left for provincial government, landowners and the rest of the nation.
Treasurer Patrick Pruaitch has raised concerns about the proposed agreement with Prime Minister Sir Michael Somare, advising him to defer the approval or execution of the agreement until all relevant State agencies had vetted it, in a letter dated March 24, 2009.
“Based on these assumptions, Treasury’s preliminary analysis indicates that the total cost of the State of these concessions could exceed $US20 billion over the life of the PNG LNG project,” Mr Pruaitch said in the letter.
Mr Pruaitch is in his Aitape-Lumi electorate and could not be contacted directly for comment. His office and Treasury Secretary Simon Tosali advised he was the only one authorised to comment on this issue.
But Petroleum Minister William Duma when contacted advised that these issues were still being negotiated on and the Government had not made any decision on what was raised in Mr Pruaitch’s letter.
Mr Pruaitch wrote to Sir Michael, advising him that the Department of Treasury and the State Solicitor’s office were concerned that the agreement was being rushed through without its implications to the State being analysed properly. “TREASURY believes the State should attempt to offer fewer concessions to projects as we move forward,” Mr Pruaitch said. There is an additional and substantive concern as the project agreement also contains a non-binding discrimination clause. The effect of this clause will be that any fiscal concession or incentives that are made available to the LNGL project, even if it was not the State’s intention, at the time it granted the new concessions.
Mr Pruaitch in his letter raised that there were no proven reserves — only contingent resource estimates and that LNGL was refusing to provide a live project model to the State to evaluate the project (unlike the PNG LNG Project, where all parties, including the State, worked off an agreed project model).
Mr Pruaitch in his letter also pointed out other concessions being sought from the State (which was dangerous) were as follows:
* A 10 year tax holiday, which will cost the State a further $US1.7 billion. This concession was not granted to the PNG LNG project, the cost to the State may exceed this amount,
* STATE equity — the project agreement grants the State the right to acquire up to 12.5 per cent, based on preliminary analysis, the reduced entitlement offered by the LNGL project will cost the State about $US2.4 billion. This contradicts the Oil and Gas Act, which allows the State the right to acquire up to 22.5 per cent equity
* THE proposed project agreement requires the State to enter into a Fiscal stability tax, which is expected to cost the State about $US2.4 billion,
* No additional profits tax
* THE 22.5 per cent in upstream (gas fields) and up to 10 per cent in remainder of project does not equate to 32.5 per cent in total project and that the State’s participation in total projects is likely to be well below 15 per cent,
* ONE Way option — seeking 50 year agreement which does not obligate LNGL to do the project at any time within the 50 years and
* STATE only offered up to 10 per cent of pipeline and plant - in the PNG LNG project the State has 19.4 per cent in the entire project
The letter states that these concessions are already not necessary as the PNG LNG project, led by ExxonMobil has signed a Gas Agreement on substantially more onerous terms. There are also strong rumours that the LNGL are trying to secure sales contracts with the Chinese buyer at a highly discounted gas price that will significantly reduce the amount of revenue that will flow back to PNG. This is potentially a double negative for PNG, less revenue in the first place and then less tax. It is tantamount to giving away the nations’ heritage, according to Mr Pruaitch’s three-page letter.
Acting Prime Minister Dr Puka Temu could not comment on this matter. His office advised yesterday that the matter was before ministerial review committee.
http://www.postcourier.com.pg/20090417/frhome.htm

[Ericus]

Chinese state company joins LNG project

A CHINESE state oil and gas company has joined Papua New Guinea’s second liquefied natural gas (LNG) project.
China National Offshore Oil Corporation (CNOOC) on Wednesday signed heads of agreement in Beijing with joint venture partners, InterOil Corporation and Petromin PNG Holdings Limited.
The agreement followed official talks between the Chinese Premier Wen Jiabao and PNG Prime Minister Sir Michael Somare.
The two leaders witnessed the signing, which is viewed as one of the major achievements of Sir Michael’s official visit to China.
Project leader InterOil and the State-owned Petromin have been holding discussions with a number of major oil and gas companies to bring in a strategic partner who will underwrite the project.
Petromin chief executive Joshua Kalinoe said the heads of agreement allowed CNOOC to participate in the process.
“More significantly, the heads of agreement provides for CNOOC to discuss the terms on which it will provide a carry for Petromin in respect of the financing of the State’s equity in the project,” Mr Kalinoe said in a statement released in Port Moresby yesterday.
He added that they were committed to quickly agreeing on the commercial terms for financing and entering into binding arrangements as soon as possible.
Mr Kalinoe said he was excited about the progress on the financing arrangements and commended Sir Michael for the support and political leadership that he had provided for the project.
“For Petromin and the people of Papua New Guinea, this is a major project where the benefits will flow throughout the national economy.
“Petromin, as the national petroleum and mining company will hold equity in the gas field and the LNG plant for the benefit of all the people of Papua New Guinea,” he said.
Mr Kalinoe said CNOOC and InterOil had undertaken to assist Petromin to build capacity and experience in all facets of the LNG project and to create jobs, skills training and long-term economic benefits for Papua New Guineans.
http://www.postcourier.com.pg/20090417/frhome.htm

[Ericus]

The news is absolutely fabulous and...
IS NOT SPREAD, yet .
Chance to get in before... everyone knows.

[Ericus]

"The accord was signed yesterday in Beijing after talks between Chinese Premier Wen Jiabao and Papua New Guinea Prime Minister Michael Somare, Petromin said."


China National Offshore Oil Corp. (NYSE: CEO), the country's biggest offshore petroleum explorer, agreed to work with InterOil Corp. (NYSE: IOC)(POMSoX: IOC) on a proposed liquefied natural gas project in Papua New Guinea.

The initial accord commits the Chinese company, InterOil (NYSE: IOC)(POMSoX: IOC) and the Papua New Guinea-owned Petromin PNG Holdings Ltd. to agreeing commercial terms for the financing of the government's stake in the project, Petromin said today in an e-mailed statement.

Papua New Guinea granted initial approvals last month for the Pacific nation's second LNG project, which would follow a plant proposed by an Exxon Mobil Corp. (NYSE: XOM) -led venture. InterOil hired BNP Paribas Capital (Singapore) Ltd. and ABN Amro Corporate Finance Australia Ltd. in March to advise on the sale of interests in the LNG project and associated gas fields to strategic partners.

"Both InterOil and Petromin have commenced discussions with a number of major oil and gas companies to bring in a strategic partner to the InterOil project who will underwrite the project," Petromin Managing Director Joshua Kalinoe said in the statement. "The heads of agreement now allows China National Oil to participate in that process."

Kalinoe didn't say whether China National, the Beijing- based parent of Hong Kong-listed Cnooc Ltd., would have a stake in the project. The venture would cost about $5 billion for a plant producing about 3.5 million metric tons a year of LNG, with shipments due to start in 2014, InterOil said last month.

Cnooc Group spokesman Li Shiqiang and Xiao Zongwei, who speaks for the listed unit, said they weren't aware of the agreement.

The accord was signed yesterday in Beijing after talks between Chinese Premier Wen Jiabao and Papua New Guinea Prime Minister Michael Somare, Petromin said.

LNG is natural gas chilled to liquid form for transportation by tanker to destinations not connected by pipeline.

[Picassa]

MEGABLAST NEWS.

[Ericus]

JV with China SIGNED !
http://www.bloomberg.com/apps/news?pid=20601089&sid=awAJNT8VHdGI&refer=china

[Ericus]

Natgas oversold !
http://stockcharts.com/h-sc/ui?s=$NATGAS&p=W&yr=3&mn=0&dy=0&id=p86865833252

[Ericus]

Good post, Picassa ! I'll mention it in the Ibox.
While we are just two on this board, it means there is still room for a dramatic event with this unknown and much shorted stock.

It is happening right before our nose... The events here are historical. The stock will never be in the low 20's anymore. Wow... maybe, we have a new Qatar here.... No, I'm not joking.
Wait and see.

[Picassa]

See that field over there…by the ocean? That's where it will be. These projects are going to bring prosperity to my country my American friend.”

That's what my guide told me. I was in Papua New Guinea at the time looking into an energy boom the whole world seems to have forgotten about. The way things are shaping up though this is the time to start thinking about it again.

It's going to be bigger (and more profitable for investors that pay attention) than almost anything else you'll find out there in the energy sector.

Sure, government subsidies for solar and wind power will help get those sectors rolling again. And the potential for a “cap and trade” carbon tax system is turning eyes back to geothermal power. But there's a bigger boom right under our noses. It's one that doesn't require any government support. This one is going to be big – real big.

Cambridge Energy Research Associates (CERA) says it's, “The next truly global energy business opportunity.”

John Gass, a division president at Chevron, says this boom is “all but inevitable.”

Daniel Muthmann of E.On AG, a $55 billion European energy/utility behemoth, says there is a “tidal wave” on the horizon.

Like I said, it's going to be big. More importantly, it has been almost completely forgotten about. Just look at whose talking about it above. These folks aren't exactly Buffetts and Roubinis of the world. They can't move markets with a brief statement. They're energy insiders. And they see what's coming.

I'm talking about liquefied natural gas, or LNG.

Cleared for Liftoff…Finally

LNG has the potential to change the world's energy landscape. As with all changes there will be great opportunity and equally great risk of loss. For those of us who are getting prepared now, we'll get the former and avoid the latter.

LNG is nothing new. It has been around for years. LNG is natural gas which has been chilled to the point that it becomes a liquid. In liquid form, it's pumped onto specialized LNG tankers and shipped all over the world.

The LNG delivery process is pretty basic as well. It is first pumped out of the ground. Then it is transported to a liquefaction plant where it is natural gas and is turned into liquid form. It's then shipped to one of the dozens of regasification plants around the world. There it is turned back into a gas and sent via pipeline to the end user.

The end result of this boom will make natural gas a truly global commodity. That's a huge change for natural gas.

Before the downturn, natural gas prices were different in every major market. Natural gas prices peaked in North America around $14 per Mcf last summer, but hung around the $6 to $10 range leading up to the bubble. European countries like England and Spain had to fork over $10 to $15 per Mcf. Japan and China were paying $15 to $22 per Mcf of natural gas.

That's a pretty wide range of prices for a commodity. Especially when you consider a pound of copper, an ounce of gold, and a barrel of oil are pretty much the same price around the world. The reason natural gas prices varied so greatly was because it was consumed primarily by the continent that produced it.

That's all starting to change…rapidly.

Pipelines used to be the only way to transport natural gas. Now, with the growth of LNG, ships can carry it anywhere in the world. Natural gas is becoming a truly global commodity and the implications will be big.

That means natural gas demand from India and China will have an impact on prices in North America, and vice versa. As the LNG market matures, we could see global natural gas prices rise a good bit higher. That's over the long-term though. Over the short-term, there is a much different story.

Global Gas Glut

The LNG market is still in its relative infancy. Last year less than 90 million tonnes of natural gas were shipped globally. To put that in perspective, it's the equivalent of about 780 million barrels of oil. That's less than 10 days of world oil consumption.

So to say the LNG market is pretty small is an understatement. There's a lot of room to grow here. And it's growing.

An additional six liquefaction plants will come on line by the end of this year. These facilities will produce a lot more LNG. Together they will nearly double global LNG production over the next few years.

For instance, the massive Sakhalin II project off the coast of Eastern Russia just shipped its very first LNG shipment to Japan a few days ago.

An expansion of the liquefaction plant in Indonesia is expected to come on line by the end of the year.

And then there's the big one. QatarGas' liquefaction facilities are going through a major expansion. This project will bring an additional 24 million tonnes of LNG on the market this year. That's nearly a 30% increase in LNG supply overnight.

The key thing here is not how many facilities are coming on line; it's where they are.

The Sakhalin Island in Russia has huge natural gas reserves. For years though they were “waterlocked” (the inverse of landlocked). There was no way to get the natural gas to end users. That is, until the Sakhalin LNG facilities started coming on line.

The LNG production facilities in Indonesia are important too. There has always been very little domestic demand for Indonesia's natural gas (I visited Indonesia too and most American's would consider Indonesia's living style primitive – outside the cities of course – but many of the people I met seemed quite happy). Indonesia is “waterlocked” too, except for Papua New Guinea to the East. Indonesia's natural gas was stuck on the island. That is, of course, until LNG became a reality.

Finally, Qatargas is the big player. The Middle East has a lot of oil and it has a lot of natural gas too. Once again, domestic demand couldn't soak up all the natural gas produced along with the oil. Pipelines to lucrative markets in Europe were too expensive to build. Qatar's gas was unusable. Again, it was unusable until LNG came along.

That's the key here. LNG is unlocking huge natural gas reserves around the world. Indonesia, Papua New Guinea, Eastern Russia, and all across the Middle East are now able to tap and sell their natural gas reserves. The gas can now be transported, relatively easily and inexpensively, to the markets with the highest bidder.

As you might expect, the ramifications of the ongoing LNG boom will be sizeable. There will be some big winners and big losers. That's why I'm recommending a slightly different strategy to capitalize on this boom.

Safety First

The LNG boom has been put on the back burner by many investors. As we looked at last week, natural gas prices have fallen 75% in 10 months. Natural gas companies are shutting down production. The number of natural operating gas rigs has been halved. Technological development has made massive reserves in the United States economically feasible to tap into. There are a lot of negatives for natural gas in the near-term, but LNG is global. And we have to think globally.

The longer-term picture is much different. The economic downturn won't last forever. The world is looking for energy sources cleaner than coal. The U.S. is about to change the economics of electricity production.

The LNG boom will have severe consequences for many natural gas producers. In North America, the prospect of importing more and more natural gas will force many marginal producers (like shale gas companies) to cut back production.

That's why I recommend sticking to the “picks and shovels” of the LNG boom with your safe money.

The LNG boom has already begun. And it's only going to get bigger. The companies which build the infrastructure to make LNG are going to do exceptionally well over the next few years.

When it comes to speculation though, there are some solid opportunities in small natural gas exploration companies. The companies which acquired natural gas reserves a few years ago picked them up for practically nothing.

Think about it. A natural gas field in the jungles of Papua New Guinea or Indonesia was pretty much worthless before LNG came into the picture. Now, those worthless reserves are worth millions – potentially billions. And they will only continue to increase in value as the world begins to realize how big LNG is going to be.

Above all, we can learn a lot from the imminent LNG. This is one of those stories which take a while to develop. LNG is not hot. We're going to see 10% moves in a day. Frankly, it's going to take a few years for the world to realize how big it is really going to be.

Wall Street hates that. It refuses to look ahead by more than a few weeks. But now, while the whole financial world is focusing on the bank problems or the nuances of the latest government bailout plan, there is opportunity for the rest of us to look ahead.

Entire industries don't get turned upside down without opportunities to capitalize on it. I'm confident LNG will bring some prosperity to Papua New Guinea as my guide expected. Given the growth I expect in LNG over the years, it will bring some prosperity to us too if we're patient and prudent. The LNG boom, and the massive opportunities which come along with it, are certainly ones to keep an eye on. And we will.

Good investing,

Andrew Mickey
Chief Investment Strategist

http://www.marketoracle.co.uk/Article9900.html

[Ericus]

They did it ! At last ! OIL !!!

InterOil Recovers Oil From First Drill Stem Test in Antelope-1 Side Track
Monday April 6, 2009, 6:57 am EDT
Buzz up! Print Related:Interoil Corp.
TORONTO, ONTARIO--(MARKET WIRE)--Apr 6, 2009 -- InterOil Corporation (NYSE:IOC - News)(POMSoX: IOC) today announced the recovery of oil and oil emulsion from the Antelope-1 side track. Initial laboratory readings indicate that the oil is approximately 44 degrees API gravity. During Drill Stem Test (DST) #8, a limited amount of oil and drilling fluid were recovered from an interval of 7,809 feet (2,380 meters) to the current total depth (TD) at 7,930 feet (2,416 meters). The side-track is in close proximity to the original Antelope-1 well bore, which was cemented from total depth at 8,892 feet (2,710 meters) to 7,727 feet (2,355 meters).


Analysis of the test pressure data, oil and oil emulsion by third parties is in progress. The Company is in the early stages of evaluation and has not yet determined any approximate volume, and in particular whether oil volumes would be sufficient to be commercially exploitable. No assurances can be given as to whether there will be sufficient volumes, that oil will ultimately be recoverable or of any future oil production.

The Company is continuing to test the lower sections of the Antelope reservoir to further its understanding of the nature and volume of oil in the reservoir and complete the original objective of testing for higher condensate-to-gas ratios at the base of the gas column.

[Picassa]

Breaking 30$.

this is going to fly....

[Picassa]

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=36817766

[Picassa]

All the green lights are set.

Beware, golden cross coming (50MA passing the 200MA)

If we pass 30$ with strong volume I may jump in.

http://stockcharts.com/h-sc/ui?s=IOC&p=D&yr=1&mn=0&dy=0&id=p97866081010

[Ericus]

4th quarter results;
It was expected that the 4th quarter would not be good in line with the steep downturn of the oilmarkets worldwide. Nevertheless, the company has strengthened its balance sheet very well and has reduced its debt quite remarkable.
With the new resources drilled, the company is well placed to turn around its balance into positive territory for many years to come..
We can expect serious interest in the stock when a deal can be made with a JV partner.

"...The fourth quarter loss of $34.2 million ($0.96 per share) compares to a loss of $2.7 million ($0.09 per share) in the same period a year ago. EBITDA loss was $28.8 million on the basis of revenues of $218.6 million, compared with a gain of $6.9 million on revenues of $172.8 million in the prior year period. The fourth quarter results were negatively impacted by the rapid decline in crude oil prices during the quarter which reduced gross margins by approximately $52.3 million. These losses were partially offset by short and long term hedges which netted a profit of $27.8 million in 2008. A further $18.0 million of unrealized hedging gains are carried forward on our balance sheet to be realized during 2009...."

"...During the year, the Company strengthened its financial position with the repayment in May 2008 of its $130.0 million secured credit bridging facility by means of conversion of a $60.0 million portion of the facility into equity and the repayment of the remainder funded by the issuance of $95 million principal amount of 8% convertible debentures maturing in May 2013. These transactions reduced our Debt-To-Capital Ratio (Long term Debt/(Shareholders' equity + Long term Debt)), so that it was 36% at December 31, 2008, which was substantially down from 67% at the same time in 2007..."

http://finance.yahoo.com/news/InterOil-Announces-Financial-iw-14778965.html

[Ericus]

Somebody said:

"I really think that Antelope 1 will be in the range of 15 to 18T when they are done. They will find oil soon… Ant 2 will be larger than Ant 1 !! 3 an 4 don’t know yet. Long term distribution agreement + farm out next 30 days. #’s from Ant 1 + the above will = $300 to $500 a share in that period...."

Seems exagerated to me... but it's a fact that Antelope will become a major oil&gas discovery.

[Picassa]

I've pass several phone calls and read all the numbers running around IOC.

My final view on this :

We can count on 12 Tcf of Gas and the market cap could go from 12B to 22B$.

I'm going to look for a long term call on IOC, because I really belive this is a gift.

[Picassa]

I'm a bit loss here.

What is the total reserve for IOC (Include Antelope1) ?

[Picassa]

InterOil plans to hold a conference call on March 30, 2009 at 08:30 a.m. Eastern, to review its financial and operational results for the fourth quarter of 2008 and the year ended December 31, 2008. The conference call phone number is +[phone]. The conference call can be heard through a live audio web cast on the company's website at www.interoil.com on the day of the conference. A replay of the broadcast will be available soon afterwards on the website.

[Picassa]

Shares Outstanding5: 35.62M
Float: 28.16M
% Held by Insiders1: 8.50%
% Held by Institutions1: 30.20%

They gave us a nice gift for the weekend.
But we'll see a lot of more news in the next days:
1) 4Q and year end PR (Monday)
2) Probably, a specific PR about the reserves
3) Conference call
4) Change to NYSE (Tuesday)
5) Ringing bell at NYSE (Tuesday too)
6) Mulacek in CNBC
7) News about the four DSTs (oil?)
8) Spudding Antelope 2
9) LNG government approval
10)Partners (Exxon?? Hhmmmm.....)

All of this in 60 days !!!!!

My pps range for the next days is $ 36 - $ 100. Hu... hu....

[Ericus]

One of the largest oil&gas companys of the future...
and this will be when other oilgiants notice they are coping with declining resources...
What the future value of this company will be, is everybody's guess but it will be huge because they are just beginning to realize what an enormous reservoir they are drilling.

[Picassa]

This is a future giant, I'm keeping my eyes here..

I understand why Pickens put his money here....

T. Boone Pickens Discloses 9.9% Stake in Interoil Corp. (IOC)

http://seekingalpha.com/article/44139-interoil-shares-skyrocket-as-boone-pickens-invests