Interoil Exploration & Production ASA : Interoil Exploration & Production ASA : Eksportconsult threatens lawsuit

Interoil Exploration & Production ASA : Interoil Exploration & Production ASA
                      : Eksportconsult threatens lawsuit

IOX  received  a  notification  on  19  March  2013  that  Eksportconsult   is 
considering filing a lawsuit against IOX.

The factual basis for the lawsuit appears to be that the board of IOX chose to
complete the USD 35000 000 equity  issue through a private placement  instead 
of entering into negotiations for the  sale of Interoil Colombia and  Interoil 
Peru based on indicative offers  that IOX had received  on 12 March 2013  from 
two parties acting in concert. Eksportconsult  alleges that a sale would  have 
given a  better  financial  result  for the  original  shareholders  than  the 
completion of the private placement.

The offer  to  acquire  Interoil  Peru  was made  by  a  Swiss  company,  with 
undisclosed shareholders. The company was  represented by the current  General 
Manager of Interoil Peru, Jaime Mur Campoverde and the offer was presented  to 
IOX by Mårten Rød.

The  indicative  offers  received  were  not  firm  and  subject  to   several 
conditions, including due diligence.  None of the offers  would enable IOX  to 
meet its USD 10000000 payment obligation under the bond loan that was due on
the 14  March 2013.  Pursuing  these offers  would  therefore require  IOX  to 
complete an equity issue of USD 10000000, in order to avoid a default on the
bond loan and insolvency.

None of the largest shareholders of IOX, including Eksportconsult, was willing
to subscribe in  such an  equity issue  and this  was therefore  not a  viable 
option for IOX.

Eksportconsult and the bidders  were informed of what  would be required  with 
respect to price, firmness  of the offers, deal  certainty and funding of  the 
short term bond payment,  in order for  IOX to be able  to cancel the  private 
placement. The bidders were not willing to meet these criteria. In the opinion
of the board of IOX,  they had no other alternative  then to complete the  USD 
35000000 equity issue if a default on the bond was to be avoided.

IOX strongly  rejects that  there is  any  basis for  the claims  notified  by 
Ekportconsult.

                                    * * *

For more information please contact:

Anne-Grete Ellingsen
Chair of the Board
Mob: +47908 66 856

Thomas J. Fjell
CEO
Mob: +47 958 15 300

www.interoil.no

***************************

InterOil Exploration & Production ASA is a Norwegian based exploration and
production company - listed on the Oslo Stock Exchange - with focus on
Latin-America. The company is operator of several production and exploration
assets in Peru and Colombia. InterOil currently employs approximately 280
people and is headquartered in Oslo.

This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

------------------------------------------------------------------------------

This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
the
information contained therein.

Source: Interoil Exploration & Production ASA via Thomson Reuters ONE
HUG#1687850
 
Press spacebar to pause and continue. Press esc to stop.