InterOil Corporation

InterOil Corporation

January 11, 2005 12:02 ET

InterOil Announces Completion of Reliability Tests at Its Papua New Guinea Refinery


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: INTEROIL CORPORATION

TSX SYMBOL: IOL
ASX., AMEX SYMBOL: IOC

JANUARY 11, 2005 - 12:02 ET

InterOil Announces Completion of Reliability Tests at
Its Papua New Guinea Refinery

TORONTO, ONTARIO--(CCNMatthews - Jan. 11, 2005) - InterOil Corporation
(TSX:IOL) (AMEX:IOC) (ASX/POMSoX:IOC), a Canadian company with
operations in Papua New Guinea today announced that on January 6, 2005
it successfully completed the process performance and reliability tests
at its Papua New Guinea refinery. These tests entailed, among other
things, operating the refinery continuously over 33 days in accordance
with its design specifications. The successful completion of these tests
is critical because it confirms the mechanical and processing integrity
of the refinery. InterOil's refinery is now producing its full
production slate and has demonstrated its ability to operate reliably at
its design capacity, while meeting yield structures and product
specifications. The refinery has also shown its flexibility by
processing crude oils other than Kutubu Blend sourced within Papua New
Guinea.

"This is an important achievement for InterOil and also for Papua New
Guinea. It signifies the commencement of what is expected to be a
reliable domestic supply of refined products in Papua New Guinea and for
the surrounding region" said Mr. Phil Mulacek, CEO of InterOil.

InterOil is developing a vertically integrated energy company whose
primary focus is Papua New Guinea and the surrounding region. Its assets
comprise an oil refinery, upstream petroleum exploration licenses, and
retail and commercial distribution assets. The majority of the refined
products from InterOil's refinery are secured by off-take contracts with
Shell and InterOil's wholly-owned subsidiary, InterOil Products Limited.
BP Singapore is InterOil's agent for crude oil supplied to the refinery.
InterOil is also undertaking an extensive petroleum exploration program
within its eight million acre license area located in Papua New Guinea.

InterOil's common shares trade on the Toronto Stock Exchange under the
symbol IOL in Canadian dollars; on the American Stock Exchange under the
symbol IOC in US dollars; and on the Australian Stock Exchange in CHESS
Depositary Interests in Australian dollars under the symbol IOC which
trade on a 10:1 basis to common shares. For more information please see
the InterOil website at: www.interoil.com.

Cautionary Statements

This press release contains forward-looking statements. All statements,
other than statements of historical facts, included in this release,
including without limitation, statements regarding our drilling plans,
business strategy, plans and objectives of management for future
operations and those statements preceded by, followed by or that
otherwise include the words "believe", "expects", "anticipates",
"intends", "estimates" or similar expressions or variations on such
expressions are forward-looking statements. The Company can give no
assurances that such forward-looking statements will prove to be
correct. Risks and uncertainties include, but are not limited to, the
existence of underground deposits of commercial quantities of oil and
gas; fluctuations in prices for oil and gas production; curtailments or
delays in development due to mechanical, operating, marketing or other
problems; capital expenditures that are either significantly higher or
lower than anticipated because the actual cost of identified projects
varied from original estimates; and from the number of exploration and
development opportunities being greater or fewer than currently
anticipated.

The Company currently has no reserves as defined under Canadian National
Instrument 51-101 reserve definitions. See the Company's filings with
the Canadian securities regulators for additional risks and information
about the Company's business.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    InterOil Corporation - Houston, TX USA
    Gary M Duvall
    V.P., Corporate Development
    (281) 292-1800
    Email: gary.duvall@interoil.com
    or
    InterOil Corporation - Cairns, Qld Australia
    Anesti Dermedgoglou
    V.P., Investor Relations
    +617 4046 4600
    Email: anesti@interoil.com
    Website: www.interoil.com