InterOil Corporation Antelope-1 Well Drilling Report No. 3

• Press Release
• Source: InterOil Corporation
• On Thursday December 18, 2008, 9:01 am EST

TORONTO, ONTARIO--(MARKET WIRE)--Dec 18, 2008 -- InterOil Corporation (Toronto:IOL.TO - News) (AMEX:IOC - News) (POMSoX: IOC) -

 

Prospect:              Antelope

Type:                  Appraisal well

Location:              PPL 238, Eastern Papuan Basin

                       294,277m E; 9,210,679m N - AGD 66, Zone 55

Current Status:        Preparing to run 9 5/8 inch casing to 5,738 feet
                       (1,749 meters) after reaching the top limestone
                       at 5,735 feet (1,748 meters). This is 1,595 feet
                       (486 meters) higher than the top limestone at
                       Elk-4.

Past activity:         Drilled a 13 inch top hole and 12 1/4 inch bottom
                       hole section from 3,288 feet (1,002 meters) to
                       5,738 feet (1,749 meters). Coal and shallow marine
                       fossils fragments were observed in the lower
                       claystone section indicating a shallow marine
                       depositional environment. Limestone and dolomite
                       were present at the top of the carbonate reservoir
                       interval. Back ground gas (C1-methane to C5-pentane)
                       (i) was observed while drilling the lower claystone
                       and carbonate interval.

                       ((i)note: previous wells drilled in the area have
                       experienced background gas, however background gas
                       in no way confirms commercial accumulations of
                       hydrocarbons reached to date on this well, until
                       the well is drilled out and testing and logging is
                       completed. The structure may need further geological,
                       geophysical and appraisal work before a commercial
                       confirmation of gas accumulations. There is no
                       assurance that any such accumulations will be
                       established.)

Planned Total Depth:   Approximately 8,200 feet (2500 meters)

Operator:              InterOil subsidiary, SPI (208) Limited.

Prospect Description:  This well is targeting the Puri and Mendi, and
                       Antelope reef limestone.

FOR INVESTOR RELATIONS ENQUIRIES: (See technical update on InterOil web site)

Cautionary Statements

We currently have no reserves as defined in Canadian National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. All information contained herein regarding resources are references to undiscovered resources under Canadian National Instrument 51-101, whether stated or not.

     Contacts:
     InterOil Corporation
     Anesti Dermedgoglou
     V.P., Investor Relations
     +61 7 4046 4600
     Email: anesti@interoil.com
     Website: http://www.interoil.com