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Drop in oil prices positive for InterOil

Staff Reporter | 9:12 PM | |
THE drop in oil prices in the second half of 2014 proved positive for InterOil Corporation giving it a greater leverage on contract negotiations.

This is as the company moves further into the development of the Elk/Antelope project.

This was from InterOil chairman Chris Finlayson during the company’s annual meeting of shareholders in New York this week. "It will mean greater contractor competition as we move further into development of the Elk-Antelope, an obvious positive for a project that is already cost advantaged," Mr Finlayson said.

The chairman said InterOil had ended 2014 with a strong foundation to developing the project.

He said in 2015 the company is scheduled to select a preferred development concept and begin front end engineering and design for the LNG plant.

InterOil chief executive officer Michael Hession told shareholders the Elk/Antelope project is potentially one of the lowest costs, new built LNG projects globally, adding that the company is pursuing its development with its joint ventures-French energy giant Total SA and Oil Search Limited.

He said in addition to this world class resource, that the company was targeting at least 17 trillion cubic feet of gas equivalent resources in its current exploration and appraisal campaign. "Both activities-the development of the Elk/Antelope as well as our exploration and appraisal-are keys to our strategy, which is based on finding hydrocarbons enabling their development through good partner selection while retaining a material interest.

"It is a repeatable strategy that will build long term incremental value for our shareholders," Mr Hession said. Post Courier /Pacific Mining Watch