InterOil Corporation

InterOil Corporation

July 06, 2005 08:36 ET

InterOil Corporation Drilling Report No.5 July 6, 2005

TORONTO, ONTARIO--(CCNMatthews - July 6, 2005) - InterOil Corporation (TSX:IOL) (AMEX:IOC) (ASX/POMSoX:IOC):

Black Bass Prospect

Type: Oil / Gas exploration well

Location: PPL 236, Eastern Papuan Basin

-8 degrees 30' 7.4"S / 146 degrees 23' 12.53"E

Current Status: Past data: Set 20" conductor at 33 feet (10
meters), Set 13-3/8" surface casing at 119
feet (36 meters), Set 9-5/8" intermediate
casing at 1,178 feet (357 meters). Set 7"
intermediate casing at 3,100 feet (945

Drilled to 5,953 feet (1,789 meters) with a
6-1/4" drill bit. Currently in the process of
the testing program for Black Bass, which
includes the running of Drill Stem Tests -
"DST" for the well. This follows the
mobilization of testing equipment to location
and the completion of electric logs.

Several gas shows were encountered during
drilling from 3,140 feet (957 meters) to
current depth which in conjunction with the
electric logs warrants DST's across three
zones to test for gas. Testing is expected to
be complete within a week.

(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. The structure is logged and now
must be tested and would need further
geological, geophysical and appraisal work
before a commercial confirmation of gas

Planned Total Depth: Approximately 5,990 feet (1,800 meters)

Operator: InterOil subsidiary, SPI (210) Limited.

Prospect Description: A sandstone system identified by seismic

FOR FURTHER INFORMATION: Please see the InterOil web site at
InterOil currently has no reserves as defined in Canadian National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Any information contained herein regarding resources are references to undiscovered resources under NI 51-101, whether stated or not.

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