InterOil Corporation
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AMEX : IOC

InterOil Corporation

January 17, 2008 19:58 ET

InterOil Corporation: Elk-4 Appraisal Well Drilling Report No. 2 January 17, 2008

TORONTO, ONTARIO--(Marketwire - Jan. 17, 2008) - InterOil Corporation (TSX:IOL)(AMEX:IOC)(POMSoX:IOC):

Elk Prospect

Type:

Gas appraisal / oil exploration well

Location:

PPL 238, Eastern Papua Basin

294,206m E, 9213,459m N

Current Status:

Nippling up BOP and preparing to run in the hole with 8 1/2-inch bit to drill out the 9 5/8-inch casing shoe. The forward plan is to drill down to the primary target of the Puri and Mendi Limestone.

Drilled a 12 1/4-inch hole from 1,789 feet (540 meters) to 3,733 feet (1,127 meters). Set 9 5/8-inch casing to 3,717 feet (1,122 meters) and cemented in place. Installed a downhole deployment valve (DDV) within the 9 5/8-inch casing.

Past Data:

Set 18 5/8-inch surface casing at 517 feet, (156 meters). Drilled a 17 1/2-inch hole to 1,792 feet (541 meters), followed by setting 13 3/8-inch intermediate casing at 1, 789 feet (540 meters).

Planned Total Depth:

Approximately 8,000 feet (2,450 meters)

Operator:

InterOil subsidiary, SPI (208) Limited.

Prospect Description:

This well is targeting the Puri and Mendi, and the Antelope structure Reef limestone.

Cautionary Statements

This press release may include "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 Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by the Company based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. 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.

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.

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