InterOil Announces 2013 Results

Focus Now on LNG Partnership and Drilling Program 
SINGAPORE and PORT MORESBY, Papua New Guinea, March 31, 2014 /CNW/ - InterOil 
Corporation (NYSE:IOC; POMSoX:IOC) (the "Company") announced today record 
revenues and products sold in its financial results for the full year ending 
December 31, 2013. 
The year also resulted in new leadership at InterOil and agreement with Total 
S.A. of France to develop the multi-billion-dollar Elk-Antelope gas field in 
Papua New Guinea. 
In March this year, InterOil also launched the start of a new US$300 million 
drilling program across four new petroleum prospecting licenses ("PPLs"). 
Front Rank of Asian Energy Companies InterOil's Chief Executive, Dr. Michael 
Hession, said: "This past year was a milestone for InterOil. With new 
leadership and management, we moved quickly to bring greater stability to our 
operations in a way that would translate into improved performance and greater 
market confidence. 
"Crucial to this was securing agreement with an oil major to develop on the 
Elk-Antelope gas field in Petroleum Retention License 15. 
"In October 2013, the board approved InterOil's largest exploration and 
appraisal program and one of the biggest in Papua New Guinea's history. We 
then accelerated preparation for exploration wells on our PPLs so we could 
drill as soon as we received the government approval. 
"In March this year, approval was given and we successfully acquired the 
rights to the same acreage as we previously held, for the next six years. 
"In March this year, we closed the sales and purchase agreement with Total 
S.A. of France to develop Elk-Antelope as a multi-billion-dollar LNG project 
for Papua New Guinea. 
"These developments, together with our oil refinery and distribution 
businesses, position InterOil among the front rank of Asian energy companies. 
The Right Team at the Right Time "To deliver on this potential and realize the 
value of these assets, we have assembled an experienced, talented management 
team. In the final months of the year, new senior executives stepped into 
roles that they would formally assume early in 2014. 
"InterOil's growth and success depend heavily on the quality of this senior 
team to guide our exceptional staff and oversee our energy assets and I am 
confident that we now have the right team to realize InterOil's full potential. 
"We also took significant steps to streamline our operations, bearing down on 
costs and rationalizing our offices and staffing. We announced the closure by 
the end of 2014 of our Cairns office, with the transfer of most functions to 
our office in Port Moresby. Though painful, it was important to align InterOil 
and ensure we focus our human and financial resources where they can have the 
greatest impact. 
Operating Growth, Developing Growth, Future Growth "These steps are integral 
to the strategy that I laid out on my appointment in July. 
"This strategy has three horizons, detailing our vision to be a world-class 
company developing world-class resources with world-class people who have a 
passion for working together, doing good work and making a difference. 
"Horizon One is operating growth: running an efficient and financially stable 
business, with capital to support investment, low costs, strong skills and 
capacity, and streamlined processes. 
"Horizon Two is developing growth: monetizing our gas resources through 
partnerships with world-class operators. 
"Horizon Three is future growth: investing in new exploration across frontier 
regions in Papua New Guinea and the region and being a partner or operator of 
choice for new ventures. 
Cash in Hand to Pursue an Aggressive Drilling Program "In short, we want to 
make the most of what we already have; turn probable opportunities into 
realities; and work our possibilities hard so they can become realities. 
"This year, we took important steps towards each horizon. The business, at 
year's end, was stable, assets were being monetized, and we had scaled-up our 
exploration work. 
"The receipt of $401 million as part of the completion of the Total agreement 
will leave us with a well-capitalized balance sheet to aggressively pursue our 
exploration program. 
"We ended 2013 in excellent shape, and begin 2014 in a position to make 
InterOil the company its staff, management, shareholders, and other 
stakeholders, want it to be and know it can be." 
Financial Highlights 


        --  Financial and operating results for the fourth quarter and full
            year ended December 31, 2013, showed record revenues of $1,400
            million (2012: $1,321 million) on the back of record total
            products sold of 9.4 MMbbls (2012: 8.5 MMbbls), an 11% increase
            from the year before and the largest volume ever sold by the
            Company. This included a record throughput of 27,999 barrels
            per day (bbls/d) from the refinery (2012: 24,483 bbls/d) and
            738 million liters of downstream sales (2012:753 million
            liters). At December 31, 2013, the Company continued to operate
            the only refinery in Papua New Guinea and was the largest
            downstream and retail distributor with 52 service stations, 18
            depots and 12 aviation sites.
        --  During 2013, investments in development of Upstream and
            Midstream Liquefaction resulted in a net loss of $75.1 million
            (2012: net loss of $59.6 million). This was balanced by
            Corporate, Refining and Downstream collectively recording a net
            profit for the year of $34.7 million (2012: $61.2 million). The
            consolidated $40.4 million net loss compared to a $1.6 million
            profit in 2012 was mainly driven by the Papua New Guinea kina
            depreciating 13% against the US Dollar leading to a
            consolidated $41.2 million in exchange rate losses.
        --  At December 31, 2013, the Company had cash, cash equivalents
            and cash restricted totaling $115.2 million (December 31, 2012:
            $98.7 million), of which $53.2 million is restricted (December
            31, 2012: $49.0 million). In addition, the Company had
            aggregate undrawn facilities of $308.0 million, including
            $150.0 million in relation to a Credit Suisse facility to fund
            the Company's current exploration program, and $158.0 million
            of working capital facilities to fund the operating business.
            The Company's gearing levels measured by the debt-to-capital
            ratio was 26% in December 2013 from 19% in December 2012.

Conference Call Information The full text of the news release and accompanying 
financials are available on the company's website at www.interoil.com.

A conference call will be held on March 31, 2014, at 8:30 a.m. US Eastern time 
(8:30 p.m. Singapore) to discuss the financial and operating results, the 
development of PRL15, the new drilling program and as well as the company's 
outlook.

The conference call can be heard through a live audio web cast on the 
company's website at www.interoil.com or accessed by dialing (800) 230-1096 in 
the US, or +1-(612) 332-0107 from outside the US.

A replay of the broadcast will be available soon afterwards on the website.
    Summary of Consolidated Quarterly Financial Results for Past Eight Quarters
    Quarters      2013                                    2012
    ended
    ($ thousands
    except per    Dec-31    Sep-30    Jun-30    Mar-31    Dec-31    Sep-30    Jun-30    Mar-31
    share data)
    Upstream      1,731     1,918     2,533     1,862     4,136     2,216     1,727     2,284
    Midstream
    –       353,749   251,725   289,300   305,172   301,925   274,671   236,006   302,310
    Refining
    Midstream
    –       181       -         20,089    -         -         -         -         -
    Liquefaction
    Downstream    213,835   215,651   199,470   208,046   220,512   201,749   223,620   218,974
    Corporate     31,832    31,714    36,201    34,923    37,552    26,880    24,742    24,757
    Consolidation (202,426) (195,773) (201,932) (199,672) (207,686) (178,652) (186,991) (210,174)
    entries
    Total         398,902   305,235   345,661   350,331   356,439   326,864   299,104   338,151
    revenues
    Upstream      (19,974)  (2,842)   (19,478)  (1,311)   (873)     956       (5,730)   (6,374)
    Midstream
    –       10,246    (3,562)   840       12,701    12,370    13,417    (42,647)  18,933
    Refining
    Midstream
    –       87        2,550     19,850    (123)     192       11        672       (1,410)
    Liquefaction
    Downstream    14,366    14,962    7,542     10,062    12,258    9,275     11,102    21,414
    Corporate     6,055     13,446    1,745     10,044    14,133    9,841     9,975     9,188
    Consolidation (16,082)  (14,647)  (11,146)  (13,418)  (12,199)  (14,503)  (9,871)   (14,216)
    entries
    EBITDA (1)    (5,302)   9,907     (647)     17,955    25,881    18,997    (36,499)  27,535
    Upstream      (33,535)  (16,206)  (32,046)  (13,774)  (13,081)  (10,936)  (15,532)  (17,244)
    Midstream
    –       74        (11,074)  (4,675)   5,855     13,401    5,358     (32,969)  11,320
    Refining
    Midstream
    –       (430)     2,373     19,284    (681)     (394)     (573)     93        (1,969)
    Liquefaction
    Downstream    9,237     9,435     4,346     6,005     7,716     5,626     6,045     13,195
    Corporate     2,787     10,780    (1,701)   7,342     10,519    7,849     8,445     6,270
    Consolidation (2,946)   (1,626)   1,562     (744)     384       (1,988)   2,205     (2,136)
    entries
    Net           (24,813)  (6,318)   (13,230)  4,003     18,545    5,336     (31,713)  9,436
    (loss)/profit
    Net
    (loss)/profit
    per share
    (dollars)
    Per Share     (0.51)    (0.13)    (0.27)    0.08      0.38      0.11      (0.66)    0.20
    – Basic
    Per Share
    –       (0.51)    (0.13)    (0.27)    0.08      0.38      0.11      (0.66)    0.19
    Diluted
        EBITDA is a non-GAAP measure and is reconciled to IFRS under the heading "Non-GAAP Measures and
    (1) Reconciliation" in our MD&A filed on
        www.sedar.ca
        and with the SEC".
    InterOil Corporation
    Consolidated Balance Sheets
    (Expressed in United States dollars)
                                     As at
                       December 31,  December 31,  December 31,  January 1,
                       2013          2012          2011          2011
                       $             $ (revised) * $ (revised) * $ (revised) *
    Assets
    Current assets:
    Cash and cash
    equivalents (note  61,966,539    49,720,680    68,575,269    232,424,858
    5)
    Cash restricted    36,149,544    37,340,631    32,982,001    40,664,995
    (note 7)
    Short term
    treasury bills -   -             -             11,832,110    -
    held-to-maturity
    (note 7)
    Trade and other
    receivables (note  98,638,110    161,578,481   137,796,513   49,004,667
    8)
    Derivative
    financial          -             233,922       595,440       -
    instruments (note
    7)
    Other current      1,054,847     832,869       862,049       498,302
    assets
    Inventories (note  158,119,181   194,871,339   171,071,799   127,137,360
    9)
    Prepaid expenses   8,125,270     8,517,340     5,477,596     3,593,574
    Total current      364,053,491   453,095,262   429,192,777   453,323,756
    assets
    Non-current
    assets:
    Cash restricted    17,065,000    11,670,463    6,268,762     6,613,074
    (note 7)
    Plant and
    equipment (note    244,383,962   255,031,257   246,031,378   225,166,865
    10)
    Oil and gas
    properties (note   584,807,023   510,669,431   362,852,766   255,294,738
    11)
    Deferred tax       48,230,688    63,526,458    35,965,273    28,477,690
    assets (note 12)
    Other non-current
    receivables (note  29,700,534    5,000,000     -             -
    18)
    Investments
    accounted for      17,557,838    -             -             -
    using the equity
    method (note 24)
    Available-for-sale
    investments (note  -             4,304,176     3,650,786     -
    13)
    Total non-current  941,745,045   850,201,785   654,768,965   515,552,367
    assets
    Total assets       1,305,798,536 1,303,297,047 1,083,961,742 968,876,123
    Liabilities and
    shareholders'
    equity
    Current
    liabilities:
    Trade and other    134,027,347   178,313,483   156,598,973   72,521,373
    payables (note 14)
    Income tax payable 17,087,974    11,977,681    4,085,137     955,074
    Derivative
    financial          1,869,253     -             11,457        178,578
    instruments (note
    7)
    Working capital
    facilities (note   36,379,031    94,290,479    16,480,503    51,254,326
    15)
    Unsecured loan and
    current portion of 134,775,077   31,383,115    19,393,023    14,456,757
    secured loans
    (note 16)
    Current portion of
    Indirect           12,097,363    15,246,397    540,002       540,002
    participation
    interest (note 17)
    Total current      336,236,045   331,211,155   197,109,095   139,906,110
    liabilities
    Non-current
    liabilities:
    Secured loans      65,681,425    89,446,137    26,037,166    34,813,222
    (note 16)
    2.75% convertible
    notes liability    62,662,628    59,046,581    55,637,630    52,425,489
    (note 21)
    Deferred gain on
    contributions to   -             5,191,101     4,700,915     4,694,936
    LNG project (note
    24)
    Indirect
    participation      7,449,409     16,405,393    34,134,840    34,134,387
    interest (note 17)
    Other non-current
    liabilities (note  96,000,000    20,961,380    -             -
    18)
    Asset retirement
    obligations (note  4,948,017     4,978,334     4,562,269     -
    19)
    Deferred tax
    liabilities (note  -             -             1,889,391     -
    12)
    Total non-current  236,741,479   196,028,926   126,962,211   126,068,034
    liabilities
    Total liabilities  572,977,524   527,240,081   324,071,306   265,974,144
    Equity:
    Equity
    attributable to
    owners of InterOil
    Corporation:
    Share capital      953,882,273   928,659,756   905,981,614   895,651,052
    (note 20)
    Authorized -
    unlimited
    Issued and
    outstanding -
    49,217,242
    (Dec 31, 2012 -
    48,607,398)
    (Dec 31, 2011 -
    48,121,071)
    2.75% convertible  14,297,627    14,298,036    14,298,036    14,298,036
    notes (note 21)
    Contributed        26,418,658    21,876,853    25,644,245    16,738,417
    surplus (note 20)
    Accumulated Other
    Comprehensive      4,541,913     25,032,953    29,380,882    9,261,177
    Income
    Conversion options -             12,150,880    12,150,880    12,150,880
    (note 17)
    Accumulated        (266,319,459) (225,961,512) (227,565,221) (245,217,682)
    deficit
    Total equity
    attributable to    732,821,012   776,056,966   759,890,436   702,881,880
    owners of InterOil
    Corporation
    Non-controlling    -             -             -             20,099
    interest
    Total equity       732,821,012   776,056,966   759,890,436   702,901,979
    Total liabilities  1,305,798,536 1,303,297,047 1,083,961,742 968,876,123
    and equity
    See accompanying notes to the consolidated financial statements
    * Revised to effect transition to IFRS 11 - Joint arrangements,
    refer note 2(c)(ii) for further information
    InterOil Corporation
    Consolidated Income Statements
    (Expressed in United States dollars)
                            Year ended
                            December 31,    December 31,    December 31,
                            2013            2012            2011
                            $               $ (revised)*    $ (revised)*
    Revenue
    Sales and operating     1,395,698,906   1,308,051,816   1,106,533,853
    revenues
    Interest                81,699          247,882         1,356,122
    Other                   4,347,963       12,257,833      11,058,090
                            1,400,128,568   1,320,557,531   1,118,948,065
    Changes in inventories
    of finished goods and   (36,752,158)    23,799,540      43,934,439
    work in progress
    Raw materials and       (1,222,760,734) (1,242,987,054) (1,064,866,361)
    consumables used
    Administrative and      (37,664,297)    (40,576,580)    (40,188,605)
    general expenses
    Derivative              (6,157,231)     (4,229,190)     2,006,321
    (losses)/gains
    Legal and professional  (11,169,769)    (5,187,704)     (5,150,107)
    fees
    Exploration costs,
    excluding exploration   (18,793,902)    (13,901,558)    (18,435,150)
    impairment (note 11)
    Finance costs           (28,603,278)    (28,614,981)    (18,163,769)
    Depreciation and        (23,411,336)    (21,855,228)    (20,111,016)
    amortization
    Gain on conveyance of
    oil and gas properties  500,071         4,418,170       -
    (note 11)
    Gain/(loss) on
    available-for-sale      3,719,907       -               (3,420,406)
    investment (note 13)
    Foreign exchange        (41,209,608)    (40,260)        25,031,788
    (losses)/gains
    Share of net profit/
    (loss) of joint venture
    partnership accounted   2,275,090       (490,186)       (2,662,204)
    for using the equity
    method (note 24)
                            (1,420,027,245) (1,329,665,031) (1,102,025,070)
    (Loss)/profit before    (19,898,677)    (9,107,500)     16,922,995
    income taxes
    Income taxes
    Current tax expense     (13,453,725)    (15,883,469)    (5,512,842)
    (note 12)
    Deferred tax
    (expense)/benefit (note (7,005,545)     26,594,678      6,248,509
    12)
                            (20,459,270)    10,711,209      735,667
    (Loss)/profit for the   (40,357,947)    1,603,709       17,658,662
    period
    (Loss)/profit is
    attributable to:
    Owners of InterOil      (40,357,947)    1,603,709       17,652,461
    Corporation
    Non-controlling         -               -               6,201
    interest
                            (40,357,947)    1,603,709       17,658,662
    Basic (loss)/profit per (0.83)          0.03            0.37
    share
    Diluted (loss)/profit   (0.83)          0.03            0.36
    per share
    Weighted average number
    of common shares
    outstanding
    Basic (Expressed in
    number of common        48,793,986      48,352,822      47,977,478
    shares)
    Diluted (Expressed in
    number of common        48,793,986      49,357,256      49,214,190
    shares)
    See accompanying notes to the consolidated financial statements
    * Revised to effect transition to IFRS 11 - Joint arrangements,
    refer note 2(c)(ii) for further information
    InterOil Corporation
    Consolidated Statements of Comprehensive Income
    (Expressed in United States dollars)
                                    Year ended
                                    December 31, December 31, December 31,
                                    2013         2012         2011
                                    $            $            $
    (Loss)/profit for the period    (40,357,947) 1,603,709    17,658,662
    Other comprehensive
    (loss)/income:
    Items that may be reclassified
    to profit or loss:
    Exchange (loss)/gain on
    translation of foreign          (20,245,215) (5,001,319)  20,527,270
    operations, net of tax
    (Loss)/gain on
    available-for-sale financial    (245,825)    653,390      (407,565)
    assets, net of tax
    Other comprehensive
    (loss)/income for the period,   (20,491,040) (4,347,929)  20,119,705
    net of tax
    Total comprehensive             (60,848,987) (2,744,220)  37,778,367
    (loss)/income for the period
    Total comprehensive
    (loss)/income for the period is
    attributable to:
    Owners of InterOil Corporation  (60,848,987) (2,744,220)  37,772,166
    Non-controlling interests       -            -            6,201
                                    (60,848,987) (2,744,220)  37,778,367
    See accompanying notes to the consolidated financial statements
    InterOil Corporation
    Consolidated Statements of Changes in Equity
    (Expressed in United States dollars)
                                  Year ended
                                  December 31,  December 31,  December 31,
                                  2013          2012          2011
    Transactions with owners as   $             $             $
    owners:
    Share capital
     At beginning of year         928,659,756   905,981,614   895,651,052
     Issue of capital stock (note 25,222,517    22,678,142    10,330,562
     20)
     At end of year               953,882,273   928,659,756   905,981,614
    2.75% convertible notes
     At beginning of year         14,298,036    14,298,036    14,298,036
     Conversion of convertible
     notes during the year (note  (409)         -             -
     21)
     At end of year               14,297,627    14,298,036    14,298,036
    Contributed surplus
     At beginning of year         21,876,853    25,644,245    16,738,417
     Fair value of options and
     restricted stock transferred (12,380,121)  (11,649,459)  (5,598,009)
     to share capital
     Stock compensation expense   4,770,971     7,882,067     14,721,387
     Gain on conversion of 2.75%  75            -             -
     convertible notes
     Loss on buyback of           -             -             (217,550)
     non-controlling interest
     Waiver of all remaining IPI  12,150,880    -             -
     conversion options (note 17)
     At end of year               26,418,658    21,876,853    25,644,245
    Accumulated Other
    Comprehensive Income
     Foreign currency translation
     reserve
     At beginning of year         24,787,128    29,788,447    9,261,177
     Foreign currency translation
     movement for the year, net   (20,245,215)  (5,001,319)   20,527,270
     of tax
     Foreign currency translation 4,541,913     24,787,128    29,788,447
     reserve at end of year
     Gain/(loss) on
     available-for-sale financial
     assets
     At beginning of year         245,825       (407,565)     -
     (Loss)/gain on
     available-for-sale financial
     assets as a result of        (277,553)     449,413       (407,565)
     foreign currency
     translation, net of tax
     (Loss)/gain on revaluation
     of available-for-sale        (203,977)     203,977       -
     financial assets, net of tax
     Gain on disposal of
     available-for-sale financial 235,705       -             -
     assets, net of tax
     Gain on available-for-sale
     financial assets at end of   -             245,825       (407,565)
     year
     Accumulated other
     comprehensive income at end  4,541,913     25,032,953    29,380,882
     of year
    Conversion options
     At beginning of year         12,150,880    12,150,880    12,150,880
     Transfer of balance to
     contributed surplus (note    (12,150,880)  -             -
     17)
     At end of year               -             12,150,880    12,150,880
    Accumulated deficit
     At beginning of year         (225,961,512) (227,565,221) (245,217,682)
     Net (loss)/profit for the    (40,357,947)  1,603,709     17,652,461
     year
     At end of year               (266,319,459) (225,961,512) (227,565,221)
    Total InterOil Corporation
    shareholders' equity at end   732,821,012   776,056,966   759,890,436
    of year
    Transactions with
    non-controlling interest
     At beginning of year         -             -             20,099
     Net profit for the year      -             -             6,201
     Buyback of non-controlling   -             -             (26,300)
     interest
     At end of year               -             -             -
    Total equity at end of period 732,821,012   776,056,966   759,890,436
    See accompanying notes to the consolidated financial statements
    InterOil Corporation
    Consolidated Statements of Cash Flows
    (Unaudited, Expressed in United States dollars)
                                  Year ended
                                  December 31,  December 31,  December 31,
                                  2013          2012          2011
                                  $             $ (revised) * $ (revised) *
    Cash flows generated from
    (used in):
    Operating activities
    Net (loss)/profit for the     (40,357,947)  1,603,709     17,658,662
    year
    Adjustments for non-cash and
    non-operating transactions
    Depreciation and amortization 23,411,336    21,855,228    20,111,016
    Deferred tax                  15,295,770    (29,450,576)  (5,598,192)
    Gain on conveyance of         (500,071)     (4,418,170)   -
    exploration assets
    Accretion of convertible      3,617,760     3,408,951     3,212,141
    notes liability
    Amortization of deferred      4,589,536     598,698       223,944
    financing costs
    Timing difference between
    derivatives recognized and    2,103,175     350,061       (762,561)
    settled
    Stock compensation expense,   4,770,970     7,882,067     14,721,387
    including restricted stock
    Inventory write down          -             322,535       259,406
    Accretion of asset retirement 356,830       331,096       159,356
    obligation liability
    Non-cash settlement on PNGEI  6,837,000     -             -
    buyback
    Gain on conversion of         (500)         -             -
    convertible notes
    (Gain)/loss on Flex LNG       (3,719,907)   -             3,420,406
    investment
    Share of net (profit)/loss of
    joint venture partnership     (2,275,090)   490,186       2,662,204
    accounted for using the
    equity method
    Unrealized foreign exchange   (352,348)     (1,070,269)   (2,618,814)
    gain
    Change in operating working
    capital
    Increase in trade and other   (21,273,999)  (43,579,657)  (54,630,047)
    receivables
    Decrease/(increase) in other
    current assets and prepaid    170,092       (3,010,564)   (2,247,769)
    expenses
    Decrease/(increase) in        30,610,288    (28,886,641)  (28,003,484)
    inventories
    Increase in trade and other   47,360,333    25,912,734    73,291,275
    payables
    Net cash generated from/(used 70,643,228    (47,660,612)  41,858,930
    in) operating activities
    Investing activities
    Expenditure on oil and gas    (128,285,583) (179,779,865) (116,492,551)
    properties
    Proceeds from IPI cash calls  29,942,167    3,497,542     749,794
    Expenditure on plant and      (25,951,297)  (30,855,107)  (36,874,794)
    equipment
    Proceeds from Pacific
    Rubiales Energy (conveyance   -             20,000,000    -
    accounted portion)
    Maturity of/(investment in)   -             11,832,110    (11,832,110)
    short term treasury bills
    Proceeds from disposal of/
    (acquisition of) Flex LNG Ltd 7,778,258     -             (7,478,756)
    shares, net of transaction
    costs
    (Increase)/decrease in
    restricted cash held as       (4,203,450)   (9,760,331)   8,027,306
    security on borrowings
    Change in non-operating
    working capital
    Decrease/(increase) in trade  5,000,000     5,000,000     (10,000,000)
    and other receivables
    (Decrease)/increase in trade  (17,744,539)  22,115,815    (6,399,657)
    and other payables
    Net cash used in investing    (133,464,444) (157,949,836) (180,300,768)
    activities
    Financing activities
    Repayments of OPIC secured    -             (35,500,000)  (9,000,000)
    loan
    (Repayments to)/proceeds from
    Mitsui for Condensate         (34,375,748)  3,578,489     9,872,532
    Stripping Plant
    Proceeds from drawdown of     -             15,000,000    -
    Westpac secured loan
    Repayments of Westpac secured (12,857,000)  (2,143,000)   -
    loan
    Proceeds from drawdown of BSP
    and Westpac secured facility  33,835,101    -             -
    (net of transaction costs)
    Repayments of BSP and Westpac (11,070,578)  -             -
    secured facility
    Proceeds from drawdown of
    Credit Suisse secured         93,042,488    -             -
    facility (net of transaction
    costs)
    Proceeds from Pacific
    Rubiales Energy for interest  73,600,000    20,000,000    -
    in PPL237 (net of transaction
    costs)
    (Repayments of)/proceeds from (57,911,448)  77,809,976    (34,773,823)
    working capital facility
    (Repayments of)/proceeds from
    ANZ, BSP & BNP syndicated     (16,000,000)  95,924,091    -
    loan
    Proceeds from issue of common
    shares, net of transaction    6,839,930     11,028,683    4,488,703
    costs
    Payment on conversion of      (1,546)       -             -
    convertible notes
    Net cash generated from/(used 75,101,199    185,698,239   (29,412,588)
    in) financing activities
    Increase/(decrease) in cash   12,279,983    (19,912,209)  (167,854,426)
    and cash equivalents
    Cash and cash equivalents,    49,720,680    68,575,269    232,424,858
    beginning of year
    Exchange (losses)/gains on    (34,124)      1,057,620     4,004,837
    cash and cash equivalents
    Cash and cash equivalents,    61,966,539    49,720,680    68,575,269
    end of year
    Comprising of:
    Cash on Deposit               31,738,440    49,086,353    18,487,116
    Short Term Deposits           30,228,099    634,327       50,088,153
    Total cash and cash           61,966,539    49,720,680    68,575,269
    equivalents, end of year
    See accompanying notes to the consolidated financial statements
    * Revised to effect transition to IFRS 11 - Joint arrangements,
    refer note 2(c)(ii) for further information

About InterOil InterOil Corporation is an independent oil and gas business 
with a primary focus on Papua New Guinea. InterOil's assets include one of 
Asia's largest undeveloped gas fields, Elk-Antelope, in the Gulf Province, 
exploration licenses covering about 16,000sqkm, Papua New Guinea's only oil 
refinery, and retail and commercial petroleum distribution facilities 
throughout the country. The company employs more than 1100 people and has its 
main offices in Singapore and Port Moresby. InterOil is listed on the New York 
and Port Moresby stock exchanges.
    Investor contacts for InterOil
    Houston                                                                                                             
       Singapore
    Wayne Andrews, Vice President Capital Markets                                                                       
       Don Spector, Chief Financial Officer
    Wayne.Andrews@InterOil.com Don.Spector@InterOil.com
    Phone: +1-281-292-1800                                                                                              
       Phone: +65-6507-0222
    Meg LaSalle, Investor Relations Coordinator
    Meg.LaSalle@InterOil.com
    Phone: +1-281-292-1800
    Media contacts for InterOil
    John Hurst, Cannings
    jhurst@cannings.net.au
    Phone: +61 418 708 663

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. These statements are based on our current beliefs 
as well as assumptions made by, and information currently available to us. No 
assurances can be given however, that these events will occur. 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 31 December 2013 on Form 40-F and 
its Annual Information Form for the year ended 31 December 2013. 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.



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