InterOil Corporation

InterOil Corporation

December 18, 2008 09:02 ET

InterOil Corporation Antelope-1 Well Drilling Report No. 3

TORONTO, ONTARIO--(Marketwire - Dec. 18, 2008) - InterOil Corporation (TSX:IOL) (AMEX:IOC) (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

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

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.

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