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

InterOil Confirms Continuity of the Antelope Reefal Reservoir and Extends LNG 
PORT MORESBY, Papua New Guinea and HOUSTON, Jan. 2, 2013 /CNW/ - 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 or from the SEC at and 
its Annual Information Form available on SEDAR at 
SOURCE: InterOil Corporation 
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CO: InterOil Corporation
ST: Texas
-0- Jan/02/2013 12:40 GMT
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