InterOil Continues Negotiations With ExxonMobil on Gas Monetization

InterOil Continues Negotiations With ExxonMobil on Gas Monetization 
ANNOUNCES $75 MILLION SECURED LOAN FACILITY FOR FURTHER EXPLORATION ACTIVITIES 
PORT MORESBY, Papua New Guinea and HOUSTON, Aug. 19, 2013 /CNW/ - InterOil 
Corporation (NYSE:IOC) (POMSoX:IOC) today announced that negotiations with 
ExxonMobil Papua New Guinea Ltd. (EMPNG), a subsidiary of ExxonMobil 
(NYSE:XOM), relating to the development of Petroleum Retention License 15, 
were ongoing notwithstanding the lapse of an exclusivity arrangement. 
InterOil will continue to work with EMPNG with the aim of accelerating the 
monetisation of its gas resources on terms that will benefit all stakeholders 
including Papua New Guinea. 
InterOil today also announced it had finalized a $75 million secured loan 
facility to accelerate its exploration and drilling program. 
InterOil's Executive Vice President of Corporate Development and Government 
Relations, Keli Taureka, has discussed the latest developments with the 
Government of Papua New Guinea and the Governor of the Gulf Province. "All of 
InterOil's businesses and assets are in PNG and we remain fully aligned with 
PNG's ambitions to develop its natural resources.  InterOil makes a 
significant contribution to PNG as a major employer and provider of fuel and 
we value our strong relations with the Government and local communities," Mr 
Taureka said. 
$75 Million Loan Facility InterOil today said that the Company and its 
subsidiaries, InterOil Products Limited (Downstream entity) and certain 
Upstream Entities, have entered into a one year $75 million equivalent 
combined secured loan facility with Westpac Bank PNG Limited (Westpac) and 
Bank South Pacific Limited (BSP) to be drawn in tranches, either USD and/or 
Papua New Guinea Kina (PGK), subject to standard closing conditions. 
Borrowings under the facility will be used for exploration and drilling 
activities with $37.5 million funding to start immediately, and a further 
$37.5 million upon the execution of an agreement in relation to monetization 
of the Elk and Antelope resource. The principal repayment will be made on the 
earlier of, the first resource payment or 12 months from the first drawdown. 
Existing downstream working capital facilities with Westpac and BSP totalling 
K140.0 million have been underutilized, due to the downstream division's 
prudent working capital management initiatives and strong liquidity. As such, 
all parties have agreed to channel existing downstream approved limits of 
K45.0 million to this secured loan facility. The downstream working capital 
facility will be kept.at the remaining K95.0 million. 
Both facilities will be shared between Westpac and BSP, secured against 
downstream assets and undertakings, IOC parent guarantee, and guarantees from 
certain Upstream entities. 
In announcing its 2013 second quarter results on July 13, the Company said 
that it would build on its success by seeking additional exploration partners. 
Collin Visaggio, InterOil's CFO remarked, "We are pleased to have strengthened 
our existing relationship with BSP, Papua New Guinea's largest bank, and 
Westpac, one of the region's largest lenders. " 
Greg Pawson, Westpac Pacific General Manager remarked "Westpac has been part 
of the fabric of Papua New Guinea since 1910. For over a century we have 
maintained a strong interest in supporting the economic growth of the country. 
It follows that we're pleased to support InterOil's exploration efforts in 
PNG." 
Robin Fleming, BSP Group CEO commented "following on from our Co-Lead Arranger 
role in the midstream term loan syndication, BSP is delighted to support 
InterOil's upstream exploration activities."  Mr Fleming also highlighted 
BSP's commitment to both InterOil and the Gulf Province with the recent 
announcement of BSP's agreement to open a Rural Branch in Kerema.  Both Mr 
Visaggio and Mr Fleming believe these activities will strongly support 
economic development across the Province. 
About InterOil InterOil Corporation is developing a vertically integrated 
energy business whose primary focus is Papua New Guinea.  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 
PapuaNew Guinea.  InterOil's common shares trade on the NYSE in US dollars. 
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|Investor Contacts for InterOil                                                                                          
                                                                                                                    
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|Wayne Andrews                                                                                                           
|Meg LaSalle                                                                                                         
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|Vice President Capital Markets                                                                                          
|Investor Relations Coordinator                                                                                      
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|Wayne.Andrews@InterOil.com|Meg.LaSalle@InterOil.com|
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|The Woodlands, TX USA                                                                                                   
|The Woodlands, TX USA                                                                                               
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|Phone: +1-281-292-1800                                                                                                  
|Phone: +1-281-292-1800                                                                                              
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|Media Contacts:                                                                                                         
                                                                                                                    
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|John Hurst                                                                                                              
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|Cannings Corporate Communications                                                                                       
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|Phone: +61-418-708-663                                                                                                  
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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 the 
InterOil expects, believes or anticipates will or may occur in the future are 
forward-looking statements, including in particular, the use of the funds from 
the loan facility, and closing of the loan facility, the maintenance of the 
pace of upstream activity, completing negotiations with the PNG State, and 
finalizing a SPA with EMPNG. 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 terms of the loan facility. No 
assurances can be given however, that these events will occur. Actual results 
will 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.com or from the SEC at www.sec.gov and 
its Annual Information Form available on SEDAR at www.sedar.com.
 

SOURCE  InterOil Corporation 
http://www.interoil.com 
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CO: InterOil Corporation
ST: Texas
NI: OIL UTI LOAN MNA  
-0- Aug/19/2013 11:30 GMT