Interoil Mulls Share Placing to Fund Colombia Field Development

South America-focused Interoil Exploration & Production announced Wednesday that it is looking at raising around $35 million via a share placing in order to provide it with funds to restart production drilling at its onshore Colombia asset.

Oslo-based Interoil has onshore operations in Colombia and Peru (along with a stake in the Ebony discovery offshore Ghana, West Africa). In Colombia it produced an average of 1,026 barrels of oil per day (net to the company) during December, while production in Peru amounted to 2764 bopd.

Last month, Interoil noted that despite a decline in production from its Colombian asset, on the Puli C block, it "strongly believes" in its intrinsic value and that it would have to raise equity in order to fund a drilling campaign to grow production and reserves at the asset.

Earlier in February, Interoil announced that it had agreed to sell its Altair and COR-6 exploration licenses in Colombia to Trayectoria Oil & Gas for $2 million. The deal also meant the Interoil would be relieved of the costs of exploration commitments that amounted to $26 million.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

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