InterOil aims to deliver on strategic agenda after raising $280 million

By Jennifer Lanning Drey

Savannah, Ga., Nov. 16 - InterOil Corp. is now positioned financially to deliver on its strategic agenda following its November public offerings of convertible notes and common shares, chief financial officer Collin Visaggio said Tuesday during the company's third-quarter earnings conference call.

The transactions resulted in $280 million of gross proceeds.

The proceeds will primarily be used for the development and construction in Papua New Guinea of a proposed condensate striping plant and related facilities and a liquefied natural gas plant and related facilities, exploration and development activities in Papua New Guinea.

"We continue to progress on our strategic plan, and we now certainly have the financial capital to deliver on those plans," Visaggio said.

InterOil ended the third quarter with $66.8 million of cash and cash equivalents at Sept. 30. Of that amount, $30.7 million is restricted.

The company also had working capital facilities with $111.5 million available for use in its midstream refining operations and $44.0 million available for use in its downstream operations.

InterOil reported a third-quarter net loss of $14.4 million, compared with a net loss of $25.3 million for the same period in 2009. The company said the improvement was primarily due to a smaller loss on extinguishment of indirect participating interest liability, which was partially offset by a $12.0 million settlement expense.

The company's debt-to-capital ratio was reduced to 10% at Sept. 30 from 13% on the same date a year earlier. The reduction was mainly due to principal payments of $9.0 million on the company's OPIC secured loan, Visaggio said.

InterOil is an oil and gas company with headquarters in the Woodlands, Texas.

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