Interoil's Production Surge: A Bright Spot in Latin America's Energy Sector

As we step into the new year, it's essential to keep an eye on the companies that are not only weathering the storm but also thriving in the face of adversity. One such company is Interoil Exploration and Production ASA, a Norwegian-based exploration and production company with a focus on Latin America. Their recent production report for November and December 2024 paints a promising picture, despite the challenges faced by the energy sector.



Interoil's daily average total operated production in December 2024 reached an equivalent production of 2,502 boepd, expressing a significant improvement of 608 boepd from the previous month. This substantial increment is mainly explained by Argentina's operations, which contributed an additional 712 boepd, while Colombia operations decreased by 104 boepd.

In Argentina, production recovered fully from winter disruptions and grew materially from spring onwards. Despite being affected by strong winds in November, which caused significant disruptions and temporarily disabled electric artificial lifting systems, the company resolved these issues in December. This enabled a 20% increase in oil production and a 60% surge in gas production compared to November, marking the highest monthly gas production in Argentina for 2024 and the second highest total monthly production in 2024.

Colombia Operations
In Colombia, operated production monthly average figures during December accounted for 594 boepd, with the Vikingo-1 well out-streaming an average daily production of 165 bopd following well repair and replacement of the well subsurface production pump. The workover rig mobilization to the Puli C Fields was delayed due to transit restrictions during year-end festivities. However, the Puli C well intervention aimed at recovering production, by replacing downhole production equipment, is expected to last two months.



Interoil's production performance in December 2024 showcases the company's resilience and adaptability in the face of challenges. The significant improvement in production levels, particularly in Argentina, demonstrates the company's ability to navigate the complexities of the energy sector and capitalize on opportunities.

As investors, we should be on the lookout for companies like Interoil that can not only weather the storm but also thrive in the face of adversity. By focusing on individual stock picking and relying on CEOs to augment their business strategies, we can identify companies that are well-positioned to succeed in the ever-changing energy landscape.

In conclusion, Interoil's production surge in December 2024 is a testament to the company's ability to adapt and thrive in the face of challenges. As investors, we should take note of this performance and consider adding Interoil to our watchlist as a potential investment opportunity in the Latin American energy sector.