InterOil secures further capital of US$25m

PACIFIC LNG Ltd has advanced US$25 million (K67.5 million) to InterOil as additional capital to enable the gas company accelerate its upstream operations.The funding will also allow InterOil to pre-invest with Pacific’s partner Mitsui and, thus, advance the condensate stripping project (CSP).InterOil and Mitsui recently announced a joint venture operating agreement on CSP.Pacific LNG president Henry Aldorf said: “We are pleased to provide additional capital to InterOil in order to accelerate its upstream operations and pre-invest with out partner Mitsui …”Aldorf disclosed that InterOil was drilling its second horizontal well at Antelope-2.He said the well was targeting a higher condensate-to-gas ratio deeper in the reservoir, which can only enhance an already high rate of return project and add resources to the year-end 2009 of 9.1 TCFE (trillion standard cubit feet equivalent).Aldorf said InterOil’s second rig arrived at its refinery in the country and was waiting to be deployed to the field in the fourth quarter following modifications for jungle drilling in this now proven basin.The term loan facility matures in Jan 31 next year and will be used for upstream development and general corporate expenses.InterOil also agreed to pledge Clarion Finanz with a 2.5% interest in the Elk and Antelope fields as collateral.InterOil chief financial officer Collin Vissagio said they were pleased to have obtained this facility which would allow them to maintain financial flexibility while seeking potential industry investors in the two fields.