Report for the first six months and the second quarter of 2025
Interoil Exploration and Production ASA
https://WWW.INTEROIL.NO
Key figures | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 |
Gross production oil/gas (boe) | 200 923 | 142 223 | 203 778 | 196 682 | 117 354 |
Production oil/gas (average boepd) | 2 208 | 1 546 | 2 211 | 2 181 | 1 289 |
Net Production oil/gas (boe) | 100 334 | 72 289 | 100 211 | 97 505 | 63 467 |
Net Production oil/gas (average Boepd) | 1 103 | 786 | 1 088 | 1 082 | 697 |
Oil price average (usd/bbl) | 83.3 | 73.6 | 74.0 | 75.8 | 67.0 |
Revenues (USDm) | 5.3 | 2.8 | 3.3 | 5.7 | 3.9 |
Net production: Represents the percentage of the participating interest corresponding to the Company in the different locations.
Highlights in the quarter
Interoil's Total operated production for the three-month period amounted to 63,467 barrels of oil equivalent (boe), representing a decline from 100,364 boe recorded in the same period of 2024. Operations in Argentina were negatively affected by winter conditions that damaged surface oil lines, while failures in power generation and compression equipment further compounded the impact. As a result, lower production combined with lower oil prices led to a decline in revenue to USD 3.9 million, compared to USD 5.3 million in the previous year.
Subsequent Events
In July, at the Company's request, bondholders approved amendments to the bond terms to settle
the full July 2025 interest payment in kind by issuing and delivering additional bonds.
On August 22nd, an unexpected rupture occurred in Vikingo's high-pressure surface production line, resulting in a minor oil spill of approximately 10 barrels. The issue was resolved within the day.
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Portfolio overviewInteroil is an independent oil and gas exploration and production company, currently operating in Colombia and Argentina. Interoil is involved in the acquisition, exploration, development and operation of onshore oil and natural gas assets. Interoil is an operator and an active license partner in several productions and exploration assets in Colombia and Argentina.
The Interoil portfolio consists of two producing licenses in Colombia, one exploration concession, and seven production concessions in Argentina. The licenses in Colombia were acquired through company acquisitions and open bid-rounds for licenses organised by the authorities. The licences in Argentina were acquired through a share purchase agreement with the previous owner, in the case of the blocks located in the Provinces of Jujuy and Chubut, and through an asset purchase agreement in the case of the concession located in the province of Santa Cruz.
Colombia - productionWorking interest production of oil and gas increase from 35,234 boe in Q1 2025 to 36,818 boe in Q2 2025.
The production increase reported in Q2 2025 resulted from the Q1 pulling campaign, which successfully brought seven wells back online. This contributed an additional 117 bopd of oil and 82,000 scfpd of gas to overall production.
On August 22nd, an unexpected rupture occurred in Vikingo's high-pressure surface production line, resulting in a minor oil spill within the field's location. Despite adverse weather conditions caused by heavy rainfall, safety protocols were immediately activated and the incident was fully resolved within the same day. The total spilled volume is estimated at 47 barrels, of which approximately 37 barrels were effectively recovered by Vikingo's on-site oil spill collection system. The remaining 10 barrels, carried beyond the immediate location by surface runoff, were successfully contained by additional barriers deployed by the field team and promptly transferred to dedicated surface tanks. Current operations at Vikingo have returned to normal, and Interoil is coordinating with the competent environmental authorities regarding the treatment and final disposition of the affected soil and
vegetation. Importantly, no human life, livestock, or wildlife were impacted by the incident.
Argentina - productionWorking interest production of oil and gas decrease from 62.272 in Q1 2025 to 26,649 in Q2 2025.
The reduction in production during the period was primarily driven by the onset of winter, which created significant operational challenges across the fields. Extremely low temperatures damaged surface oil lines, while failures in power generation and compression equipment further compounded the situation. Field crews are working to restore compression capacity and generation systems, with repairs and replacements of affected components currently underway.
Several damaged oil flowlines have already been repaired, and progress is being made in bringing portions of the power generation and compression capacity back online. Although some equipment remains under intervention, these improvements have supported a gradual stabilization of operations.
FinancingIn July, the Company requested bondholders to approve a proposal to amend the terms of the Company's senior secured callable bonds enabling to settlement in kind of the full Interest Payment due in July 2025 by issuing and delivering additional Bonds with terms and conditions substantially equal to those of the outstanding Bonds.
Furthermore, the company intends to initiate formal discussions with Bondholders during the second half of 2025 to evaluate and consider potential alternatives that ensures the Company's continued development and seek a solution that is acceptable to stakeholders.
OutlookThe Company is implementing a broad strategy to enhance operational and financial stability, focusing on restoring production levels in Argentina and Colombia through the reactivation of shut-in wells and efficiency improvements. At the same time, efforts are underway to optimize lifting costs and identify new development opportunities. In parallel, the Group is also reviewing strategic alternatives for its asset portfolio. Given the current mismatch between short-term liabilities and assets, the Group is pursuing targeted actions to strengthen liquidity, including production enhancement, cost restructuring, and strict control of discretionary spending.
The Board of Directors and the General Manager have reviewed and approved the unaudited six and three-month interim financial report for the periods ended 30 June 2025.
The interim report has been prepared following IAS 34 "Interim Financial Reporting" in the context of the International Financial Reporting Standards (IFRS) as adopted by the EU and additional Norwegian disclosure requirements for interim financial reports of listed public limited companies.
We consider, to the best of our knowledge, the accounting policies applied to be appropriate. Accordingly, the interim report gives a true and fair view of the Group's assets, liabilities, financial position and results as of 30 June 2025.
August 29, 2025
The Board of Interoil Exploration and Production ASA.
Hugo Quevedo | Leandro Carbone | Carmela Saccomanno |
Chairman | General Manager | Board member |
(signed) | (signed) | (signed) |
Isabel Valado Ramudo | German Ranftl | Laura Marmol |
Board Member | Board Member | Board member |
(signed) | (signed) | (signed) |
Amounts in USD 1 000 | For the 3-month period ended 30 June 2025 | For the 3-month period ended 30 June 2024 | For the 3-month period ended 31 March 2025 | For the 6-month period ended 30 June 2025 | For the 6-month period ended 30 June 2024 |
(not audited) | (not audited) | (not audited) | (not audited) | (not audited) | |
Sales | 3.903 | 5.349 | 5.704 | 9.607 | 10.648 |
Cost of goods sold ex depreciation | -3.747 | -4.514 | -5.255 | -9.002 | -7.283 |
Depreciation | -1.651 | -511 | -1.649 | -3.300 | -863 |
Gross profit | -1.496 | 324 | -1.199 | -2.695 | 2.502 |
Exploration cost expensed | -15 | -66 | 0 | -15 | -136 |
Operating expenses | -1.282 | -2.539 | -1.349 | -2.631 | -4.228 |
Other (expense)/income | 170 | 88 | 213 | 384 | 198 |
Result from operating activities | -2.622 | -2.193 | -2.335 | -4.958 | -1.664 |
Finance expense - net | -1.106 | -1.331 | -2.511 | -3.617 | -3.042 |
Result before income tax | -3.728 | -3.525 | -4.847 | -8.575 | -4.706 |
Income tax (expense)/credit | -214 | 80 | 25 | -190 | -362 |
Net result | -3.942 | -3.445 | -4.822 | -8.764 | -5.068 |
Notes 1 to 4 are an integral part of these condensed consolidated financial statements.
As of 30 June 2025 | As of 31 March 2025 | As of 31 December 2024 | |
ASSETS | |||
Non-current assets | |||
Property, plant and equipment | 13.546 | 14.124 | 14.663 |
Other intangible assets | 2.295 | 3.442 | 4.589 |
Exploration and evaluation assets | 3.605 | 3.605 | 3.605 |
Total non-current assets | 19.446 | 21.171 | 22.857 |
Current assets | |||
Inventories | 1.312 | 1.495 | 1.373 |
Trade and other receivables | 20.199 | 19.131 | 16.824 |
Assets available for sale | 1.677 | 1.677 | 1.677 |
Cash collateral guarantee bank balances | 4.529 | 4.529 | 3.806 |
Cash and cash equivalents, non collateral | 213 | 1.837 | 1.177 |
Total current assets | 27.930 | 28.670 | 24.856 |
TOTAL ASSETS | 47.376 | 49.840 | 47.713 |
TOTAL EQUITY | -40.994 | -37.052 | -32.230 |
LIABILITIES | |||
Non-current liabilities | |||
Borrowings | 1.574 | 1.643 | 26.827 |
Retirement benefit obligations | 805 | 782 | 743 |
Provisions for other liabilities and charges | 9.363 | 9.253 | 9.042 |
Other long-term payables | 2.355 | 2.475 | 2.584 |
Total non-current liabilites | 14.097 | 14.153 | 39.197 |
Current liabilities | |||
Borrowings and interest bearing liabilities | 40.619 | 41.123 | 11.520 |
Trade and other payables | 30.336 | 28.585 | 26.970 |
Income tax payable | 1.379 | 1.156 | 1.111 |
Provisions for other liabilities and charges | 1.939 | 1.875 | 1.145 |
Total current liabilities | 74.273 | 72.739 | 40.746 |
TOTAL LIABILITIES | 88.370 | 86.892 | 79.943 |
Notes 1 to 4 are an integral part of these condensed consolidated financial statements.
Amounts in USD 1 000 | Share capital and share premium | Other paid-in equity | Retained earnings | Total equity |
Balance at 31st December 202 | 4 166.108 | 4.744 | -203.082 | -32.230 |
Net result | - | - | -8.764 | -8.764 |
Balance at 30 June 2025 | 166.108 | 4.744 | -211.846 | -40.994 |
Amounts in USD 1 000 | For the 6-month period ended 30 June 2025 | Year ended 31st December 2024 |
Cash generated from operations | ||
Comprehensive income/(loss) for the period | -8.764 | -17.172 |
Income tax | 190 | 1.204 |
Net finance expense | 3.617 | 745 |
Depreciation, amortization and impairment | 3.300 | 7.218 |
Assets retirement increase | 0 | 1.100 |
Impairment recovery on PP&E | 0 | -1.087 |
Gain on sale of PP&E | 0 | -903 |
Changes in assets & liabilities | ||
Inventories | 62 | -594 |
Trade and other receivables | -3.375 | -5.525 |
Trade and other payables / provision and other liabilities | 4.314 | 7.639 |
Change in tax payable | 78 | -743 |
Net cash generated / used in operating activities | -579 | -8.118 |
Cash flows from investing activities | ||
Changes in restricted cash classification | -723 | 459 |
Interest received in cash | 1.500 | 341 |
Capital expenditures | -1.388 | 154 |
Net cash used in investing activities | -612 | 954 |
Cash flows from financing activities | ||
Finance expense net | -518 | -280 |
Increase in borrowings | 746 | 7.330 |
Net cash used in / generated by financing activities | 227 | 7.050 |
Net change in cash and cash equivalents | -963 | -114 |
Non restricted cash and cash equivalents at beginning of the period | 1.177 | 1.164 |
Exchange rate changes on cash and cash equivalents | 127 | |
Non restricted cash and cash equivalents at end of the year | 213 | 1.177 |
Notes 1 to 4 are an integral part of these condensed consolidated financial statements.
Interoil Exploration and Production ASA is an independent oil and gas exploration and production company, with offices in Buenos Aires, Argentina, and Bogota, Colombia. The company is listed on the Oslo Stock Exchange with the ticker "IOX". The Company is registered in the Register of Business Enterprises with organisation number 988 247 006.
Interoil is involved in the acquisition, exploration, development and operation of oil and natural gas properties in South America. Several projects are being evaluated; both producing fields and prospecting areas.
Interoil's current asset portfolio is focused on onshore E&P contracts in Colombia and Argentina. The company aims to expand its portfolio through further acquisitions, purchase of license shares and license applications or awarded permits and licenses mainly in South America
The condensed consolidated interim financial information for the period ended 30 June 2025 includes the Company and its subsidiaries. This condensed consolidated interim financial information has been authorised for issue by the Board of Directors on 29 August 2025.
Note 2. Accounting policies
Interoil's condensed consolidated interim financial information is prepared following IAS 34, in the context of the International Financial Reporting Standards (IFRS) as adopted by the European Union.
Interim period results are not necessarily indicative of results of operations or cash flows for an annual period.
Should the Group be affected by the consequences of the exploration activities, the valuation of the Group's
assets will need to be further revised, leading to potential further impairment.
Comparative information is disclosed in this report for the 3-month, and 12-month period ended 31 March 2025 and 31 December 2024. Furthermore, certain amounts of the comparative information in the report have been reclassified to achieve consistency of presentation with amounts in the report of the second quarter ended 30 June 2025. The most relevant reclassification relates to the bond loan maturing 31 January 2026, which was reclassified from non-current to current liabilities.
The condensed interim financial information is unaudited.
For the 6-month period ended 30 Ju | ne 2025 | |||
Amounts in USD 1 000 | Colombia Ar | gentina Norway/Corp Gr | oup | |
Total revenue | 4.756 | 4.850 | - | 9.607 |
Cost of goods sold ex depreciation | -2.910 | -6.092 | - | -9.002 |
Depreciation | -827 | -2.473 | - | -3.300 |
Gross profit / (loss) | 1.019 | -3.714 | - | -2.695 |
Exploration cost expensed | -15 | - | - | -15 |
Operating expenses | -1.208 | -1.060 | -363 | -2.631 |
Other income | 177 | - | 207 | 384 |
Result from operating activities | -28 | -4.774 | -156 | -4.958 |
Finance expense - net | -1.514 | -1.079 | -1.024 | -3.617 |
Loss before income tax | -1.541 | -5.853 | -1.180 | -8.575 |
Income tax expense | -190 | - | - | -190 |
Loss for the period | -1.731 | -5.853 | -1.180 | -8.764 |
For the 6-month period ended 30 June 2 | 024 | |||
Amounts in USD 1 000 | Colombia Ar | gentina Norway/Corp | Group | |
Total revenue | 5.149 | 5.498 | - | 10.648 |
Cost of goods sold ex depreciation | -3.088 | -4.195 | - | -7.283 |
Depreciation | -863 | - | - | -863 |
Gross profit | 1.198 | 1.304 | - | 2.502 |
Exploration cost expensed | -136 | - | - | -136 |
Operating expenses | -206 | -2.509 | -1.513 | -4.228 |
Other income | 105 | - | 93 | 198 |
Result from operating activities | 962 | -1.205 | -1.421 | -1.664 |
Finance expense - net | -123 | -1.994 | -925 | -3.042 |
Loss before income tax | 839 | -3.199 | -2.345 | -4.706 |
Income tax expense | -362 | - | - | -362 |
Loss for the period | 477 | -3.199 | -2.345 | -5.068 |
Amounts in USD 1000 | For the 6-month period ended 30 June 2025 | For the 6-month period ended 30 June 2024 |
Interest expense | -2,649 | -1,638 |
Exchange (loss) / gain | 489 | 494 |
Others | -1.457 | -1,898 |
Net finance expenses | -3,617 | -3,042 |
INTEROIL EXPLORATION AND PRODUCTION ASA
c/o Advokatfirmaet Schjødt AS Oslo, Norway
info@interoil.no ir@interoil.no