Interoil in Colombia asset sales

Taking exit: Interoil in Colombia

Interoil Exploration & Production is disposing of its stakes in a pair of Colombia licences in a move to cut financial liabilities at the loss-making Oslo-listed minnow.

The company has inked a deal to sell its interests in the Altair and COR-6 exploration licences to Trayectoria Oil & Gas, which will pay $2 million in cash while also relieving InterOil of exploration commitments on the tracts totalling $26 million.

The transaction, subject to approval by banks, bondholders and the Colombian authorities, is expected to close within the next six months.

InterOil said it also remains in dialogue with several parties for divestment of its stake in Colombia’s LLA-47 licence.

The company, which reported a loss of $7.1 million in the third quarter versus a $39.3 million profit a year earlier, has implemented a $10 million cost-cutting programme, as well as asset sales, to get its finances back on track.

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