Report for the fourth quarter and full year of 2023
Oslo, 29 February 2024
Highlights in the period
Interoil’s net production for the full year 2023 was 343,517 barrels of oil equivalents (boe), an increase of 17% from 293,386 boe in 2022.
Revenues were USD 23.9 million compared with USD 18.9 million in the previous year. The increase is due to increased share in Argentina’s operations. In the fourth quarter, revenues were impacted by the decrease in oil prices, as well as the seasonal decrease in gas prices in Argentina, where summer prices on average are 35% lower than winter prices.
In November a new President was elected in Argentina. Mr. Milei has taken a number of measures that impacted in the Company’s business, including decrease of existing gap between the official exchange rate and the actual exchange rate between the Argentine peso and the US dollar and progressive deregulation of O&G prices. Devaluation had a significant impact on cash calls denominated in local currency.
By virtue of requests filed by Interoil Colombia to the Colombian hydrocarbons regulatory agency (ANH), the terms applicable to Interoil’s drilling obligations in Llanos-47 and Altair have been postponed at least through January 2025 and February 2025, respectively. While no assurance can be given, postponement should continue beyond such dates as long as there are underlying reasons causing force majeure.
Areas acquired in June 2023 in Argentina have caused a temporary increase in operating expenses to improve operations and achieve higher O&G production. Since the concessions over the Santa Cruz assets in Argentina expire in 2026, the Company is pursuing diligently all the necessary steps to obtain a 10-year extension from the Government. This requires relevant expenditures to remediate matters which need to be addressed as a pre-condition for such extension. The Company has fully committed efforts to these actions after the acquisition of majority interest in the concession in June 2023.
For more information, please see enclosed Interoil Exploration and Production ASA’s Report for the fourth quarter of 2022.
This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.
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Please direct any further questions to ir@interoil.no (mailto:ir@interoil.no)
About Interoil
Interoil Exploration and Production ASA is a Norwegian based exploration and production company – listed on the Oslo Stock Exchange with focus on Latin America. The Company is operator and license holder of several production and exploration assets in Colombia and Argentina with headquarter in Oslo.
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