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InterOil is developing an integrated energy business consisting of an oil refinery, petroleum exploration, and retail assets in Papua New Guinea. The majority of product from the refinery is secured by contracts with Shell Overseas Holdings Ltd.
In addition to the refinery and retail assets, InterOil has commenced an extensive exploration program in Papua New Guinea.
The company recently secured $12.2 million in funding to help with its multi-well drilling program in Papua New Guinea with PNG Drilling Ventures Ltd earning an indirect 6.75% working interest in InterOil's expanded 16 well program.
PNG Drilling Ventures has a right to convert part of the working interest into InterOil common stock at an average price of US$16.83 per share (C$23.24 per share).
The offering involves the issuing of 1,600,000 subscription receipts at C$31.25 per subscription receipt for gross proceeds of C$50,000,000.
The underwriters have an option to increase the size of the offering by up 600,000 receipts for additional C$18,750,000.
The subscription receipts represent the right to receive fully paid common shares on a one to one basis, for no additional consideration, upon shareholder approval for the issuing of the shares.
