InterOil Confirms Continuity of the Antelope Reefal Reservoir and Extends LNG Agreements

InterOil Confirms Continuity of the Antelope Reefal Reservoir and Extends LNG

PR Newswire

PORT MORESBY, Papua New Guinea and HOUSTON, Jan. 2, 2013

PORT MORESBY, Papua New Guinea and HOUSTON, Jan. 2, 2013 /PRNewswire/
--InterOil Corporation (NYSE:IOC) (POMSoX:IOC) announced that the Antelope-3
well reached total depth on December 25^th, and the wireline logging program
is currently in progress. Preliminary independent analysis of the wireline log
results by Schlumberger demonstrate a carbonate reservoir (limestone and
dolomite) with similar reefal reservoir character and quality as the offset
Antelope-1 and Antelope-2 wells. This is consistent with, and supplements, the
excellent results of our initial drill stem test (DST#1).

Preliminary interpretation indicates that the Antelope-3 shares the same water
contact with these wells at 7,310 feet (2228 meters) below sea level. With the
top of the reservoir encountered at 1,624 meters measured depth in the well,
equivalent to a true vertical depth of 5,009 feet (1,527 meters) below sea
level, this equates to a hydrocarbon column height of approximately 2,301 feet
(701 meters). This represents the tallest vertical column encountered in the
Antelope field to date. The forward program is to complete the remaining
wireline logging test program before suspending the well for recompletion as a
future producer.

Separately, InterOil announced that it has extend the dates in the contingent
LNG project agreements with each of Mitsui & Co., Ltd. (Mitsui) and Energy
World Corporation Limited (EWC) to provide flexibility for partner selection
and Final Investment Decision (FID). The joint venture operating agreement and
associated agreements with Mitsui for the proposed Condensate Stripping Plant
(CSP) have also been amended to extend the time allowed for FID.

On November 15, 2012, InterOil was notified that the National Executive
Council (NEC) of Papua New Guinea had approved a proposal to build a 3.8
million tonnes per annum LNG plant in the Gulf Province of Papua New Guinea.
The approval received from the NEC is in line with the proposals from our
potential LNG partners. Since then, InterOil has been working with the PNG
Government to complete a modified LNG project agreement and to secure an
internationally recognized operator of the proposed facilities, consistent
with the NEC approval. InterOil expects that these actions will allow it to
promptly complete the partnering process.

"InterOil is pleased to have safely completed drilling our sixth well in the
Elk and Antelope fields, which InterOil believes further confirms the
continuity of this exceptional reservoir. Confirmation of continuous reefal
reservoir at the Antelope-3 location, in conjunction with PNG's Cabinet
approval for the Gulf LNG project and growing provincial and landowner
support, has allowed us to focus on finalizing our partnering process," stated
Mr. Phil Mulacek, Chief Executive Officer of InterOil.

About InterOil
InterOil Corporation is developing a vertically integrated energy business
whose primary focus is Papua New Guinea and the surrounding region.
InterOil's assets consist of petroleum licenses covering about 3.9 million
acres, an oil refinery, and retail and commercial distribution facilities, all
located in Papua New Guinea. In addition, InterOil is a shareholder in a
joint venture established to construct an LNG plant in Papua New Guinea.
InterOil's common shares trade on the NYSE in US dollars.

Investor Contacts for InterOil
Wayne Andrews                  Meg LaSalle
Vice President Capital Markets Investor Relations Coordinator
The Woodlands, TX USA          The Woodlands, TX USA
Phone: +1-281-292-1800         Phone: +1-281-292-1800

Forward Looking Statements
This press release includes "forward-looking statements" as defined in United
States federal and Canadian securities laws. All statements, other than
statements of historical facts, included in this press release that address
activities, events or developments that InterOil expects, believes or
anticipates will or may occur in the future are forward-looking statements,
including in particular, drilling of the Antelope-3 well in the Elk/Antelope
field, the characteristics of the Antelope reef structure and reservoir,
statements concerning business plans and strategies, including those to
develop a CSP or a LNG plant, the timing of a FID in respect of such
facilities, the ability to attract a strategic LNG partner and the timing of
any agreement with such partner, the ability to amend the terms of an amended
LNG Project Agreement with the State to effect the NEC approval, the
construction and development of the proposed large scale LNG project, business
prospects, strategies, regulatory developments, and the ability to obtain
financing on acceptable terms. These statements are based on the terms of the
NEC approval, the amended JVOA and associated agreements. These statements are
based on certain assumptions made by the Company based on its experience and
perception of current conditions, expected future developments and other
factors it believes are appropriate in the circumstances, including the
quality of the reservoir indicated by the Antelope-3 well, discussions with
the State, the terms of the NEC approval, the terms of the LNG Project
Agreement with the State and the status of the LNG strategic partner search
process. No assurances can be given however, that these events will occur
including, in particular the development of the proposed LNG project. Actual
results could differ, and the difference may be material and adverse to the
Company and its shareholders. Such statements are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the control of
the Company, which may cause our actual results to differ materially from
those implied or expressed by the forward-looking statements. Some of these
factors include the risk factors discussed in the Company's filings with the
Securities and Exchange Commission and on SEDAR, including but not limited to
those in the Company's Annual Report for the year ended December 31, 2011 on
Form 40-F and its Annual Information Form for the year ended December 31,
2011. In particular, there is no established market for natural gas or gas
condensate in Papua New Guinea and no guarantee that gas or gas condensate
from the Elk and Antelope fields will ultimately be able to be extracted and
sold commercially.

Investors are urged to consider closely the disclosure in the Company's Form
40-F, available from us at www.interoil.comor from the SEC at www.sec.govand
its Annual Information Form available on SEDAR at

SOURCE InterOil Corporation

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