Aug 16 InterOil Corp and ExxonMobil Corp
remain in talks to jointly develop InterOil's Elk and
Antelope natural gas fields in Papua New Guinea, InterOil said
on Friday after a website reported negotiations had ended
without an agreement.
InterOil's shares fell as much as 12 percent following the
report in PNG Industry News. ()
The news service, citing an unidentified source, said the
talks were "dead" and that ExxonMobil's exclusive period for
negotiations had ended.
InterOil, responding to a query from the New York Stock
Exchange, said its policy was to not comment on market
speculation or negotiations. But it added: "Negotiations with
ExxonMobil Papua New Guinea Ltd regarding an agreement to
monetize the Elk and Antelope fields are ongoing."
ExxonMobil spokesman Patrick McGinn declined to comment.
ExxonMobil needs gas for its $19 billion Papua New Guinea
liquefied natural gas (PNG LNG) project.
InterOil, which has its headquarters in Cairns, Australia,
was awarded the license to develop the fields in November 2010.
The license covers nine blocks surrounding the Elk and Antelope
The talks also included funding of InterOil and its partner
Pacific LNG to drill additional delineation wells in the fields.
InterOil shares were down 5 percent at $70.38 in early