PNG Elk-Antelope LNG Project to Be Lowest Cost LNG Project in the World, Says InterOil

InterOil Corporation earlier this week said PNG Elk-Antelope LNG project would potentially be the lowest cost new-build LNG project in the world.

“Independent analysis suggests Elk-Antelope is the most competitive new-build LNG project globally, with the potential for superior returns even at low commodity prices,” InterOil Chief Executive Michael Hession said while announcing company’s financial results on Tuesday. “We are well placed with liquidity of $715 million and an anticipated certification payment, to meet our commitments and pursue the LNG project timetable.

He said the past year has enabled the company to focus on developing Elk-Antelope and on maintaining its exploration effort in the Eastern Papuan Basin.

In addition, the company has identified five targets, outside of Elk-Antelope, with a potential of 17 trillion cubic feet of gas equivalent (Tcfe) of gross contingent and prospective resource, Hession said.

“We are now planning five wells outside of Elk-Antelope to target about 17 Tcfe of gross contingent and prospective resource; 8 Tcfe of which could be targeted by appraisal wells at Bobcat, Raptor, and Triceratops-3 plus 9 Tcfe by exploration wells at Antelope-South and Wahoo,” he said.

In releasing financial results for the fourth quarter and full year to December 31, 2014, the company reported net income of $289.8 million, primarily due to completing its Elk-Antelope transaction with Total and the sale of its refinery and downstream businesses to Puma Energy.

“We implemented structural changes in 2014, which allowed us to run our business more efficiently while building a strong foundation for growth,” he said.