Summary: Papua New Guinea focused InterOil has beefed up its balance sheet. The company is moving ahead with its drilling program to develop its massive acreage and has bigger ambitions as it eyes Asian markets.
The future of InterOil (NYSE:IOC), the Papua New Guinea focused independent oil and gas company, as a major exporter of liquefied natural gas, or LNG, from the island nation is looking better.
The company's major asset includes its interest in the island nation's Elk and Antelope gas field, one of the largest gas fields in Asia estimated to hold as much as 7 trillion cubic feet of gas, and exploration licenses covering more than 16,000 square kilometers, mainly in the Eastern Papuan Basin. As compared to the Western Basin, the Eastern Basin is relatively under-explored, but it is home to Elk and Antelope fields.
The company has recently released its second quarter results in which it swung to a profit of $52.3 million from a loss of $13.2 million in the same quarter last year, largely due to the $49.5 million gain on sale of assets to Puma Energy. In terms of continuing operations, the company's loss came in at $15.7 million, nearly flat from the same quarter last year.