InterOil in Talks With Exxon on Natural Gas Fields

InterOil Corp. (IOC), the Australian energy company with licenses to explore about 3.9 million acres, said it entered exclusive talks with Exxon Mobil Corp. to develop natural gas fields in Papua New Guinea.

Included in the talks is the potential sale of a stake in Petroleum Retention License 15, which comprises the Elk and Antelope fields, that is sufficient to supply gas to develop an additional liquefied natural gas train, Cairns-based InterOil said in a statement today.

InterOil and Pacific LNG Group, its joint-venture partner, may also get funding for more wells in the fields. The fields hold an estimated 9 trillion cubic feet of recoverable sales gas, InterOil said in its 2012 annual report. The company had spent $384 million on the fields through March 31.

The announcement was made before the start of regular trading in New York. InterOil rose 9.1 percent to $102 at 7:34 a.m.

To contact the reporter on this story: Tina Davis in New York at tinadavis@bloomberg.net

To contact the editor responsible for this story: Tina Davis at tinadavis@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.