InterOil Responds to Allegations That They've Never Actually Found Oil

Monday, March 29, 2010 , , , , 0 Comments

interoil dry wells


Unfortunately, their press release this morning did not discuss rumors that their pumper in chief Shia LaBeouf has a tiny dick. Oh well.

In case you missed it, catch up on the awesome story here: Before We Talk About Anything Else, Let's Get the Tiny Dick Out of the Way (Then Get to the InterOil Fraud). I also did it for Going Concern this morning (JDA can't resist a good dick story with convenient Texas gusher photos), which you can find here.

So, the press release:

CAIRNS, Australia and HOUSTON, March 29 /PRNewswire-FirstCall/ -- InterOil Corporation (NYSE: IOC) (POMSoX: IOC) believes that allegations made in an article concerning certain litigation which has been ongoing in Texas since 2005, have been raised now in an attempt to divert attention from the successful operations of the company. Operations conducted by the company which were evaluated by independent engineering evaluations consultants, GLJ Petroleum Consultants Ltd., resulted in an increase in our gross best case contingent resources estimate by 889 million barrels of oil equivalent resources, to a revised total of 8.2 tcf of natural gas and 156 million barrels of condensate, in the past fiscal year. The article was timed to benefit recent short selling activities. The "short" interest in InterOil increased to 3,548,056 shares in mid-March.

That makes sense. Best not to talk about ongoing litigation, that's a good rule to run with. But, uh, then the press release basically reveals what everyone already knows: after 7 years of promising explosive stores, InterOil has come up short every time.

Someone tweet me if they ever find some oil, I've got shit to do and can't sit around waiting for them to figure out what "successful operations" actually means.

The PR footnotes:

InterOil currently has no production or reserves as defined in Canadian NI 51-101 or under the definitions established by the United States Securities and Exchange Commission. The resources information set forth in this press release is based on the GLJ Report and is a summary of information to be included in the Statement of Resources and Other Oil and Gas Information of InterOil for the year ended December 31, 2009, which will be prepared in accordance with NI 51-101 and will be included in InterOil's annual information form for the year ended December 31, 2009, a copy of which will be filed on SEDAR (www.SEDAR.com) and on InterOil's website (www.interoil.com).

Contingent resources are those quantities of natural gas and condensate estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. The economic status of the resources is undetermined and there is no certainty that it will be commercially viable to produce any portion of the resources. The following contingencies must be met before the resources can be classified as reserves:

* Sanctioning of the facilities required to process and transport marketable natural gas to market.
* Confirmation of a market for the marketable natural gas and condensate.
* Determination of economic viability.


Although a final project has not yet been sanctioned, pre-Front End Engineering and Design (FEED) studies are ongoing for liquid natural gas (LNG) and condensate stripping operations as options for monetization of the gas and condensate.

The "low" estimate is considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. With the probabilistic methods used, there should be at least a 90 percent probability (P90) that the quantities actually recovered will equal or exceed the low estimate. The "best" estimate is considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. With the probabilistic methods used, there should be at least a 50 percent probability (P50) that the quantities actually recovered will equal or exceed the best estimate. The "high" estimate is considered to be an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. With the probabilistic methods used, there should be at least a 10 percent probability (P10) that the quantities actually recovered will equal or exceed the high estimate.

Bwhahahahahaha LOL! Why bother? That peak oil thing suuuuure is a bitch, ain't it?

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.

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