InterOil Corporation
TSX : IOL
AMEX : IOC

InterOil Corporation

March 23, 2006 09:25 ET

InterOil Corporation Elk-1 Drilling Report No. 2 March 23, 2006

TORONTO, ONTARIO--(CCNMatthews - March 23, 2006) - InterOil Corporation (TSX:IOL) (AMEX:IOC):



Elk Prospect

Type: Oil / Gas exploration well

Location: PPL 238, Eastern Papua Basin
145 degrees 08' 27.6" E; 007 degrees 06' 0.5" S

Past activity: Set 20" conductor at 15 feet (5 meters).
Drilled 17 1/2" hole to 1,007 feet (307
meters) and ran 13 3/8" surface casing.

Current activity: Currently kicked off and drilling ahead at
2,612 feet (796 meters)

Since last report: Drilled 12 1/4" hole to 4,075 feet (1,242
meters). The hole began swelling and
sloughing at around 3,150 feet (960 meters)
while making a wiper trip. Set a cement plug
from approximately 2,766 to 2,560 feet (840
to 780 meters) to establish the kickoff point.
The well is being sidetracked to go around the
problem area.

Planned Total Depth: Approximately 9,843 feet (3,000 meters), Top
zone of interest 4,000 to 4,750 feet.

Operator: InterOil subsidiary, SPI (208) Limited.

Prospect Description: This well is targeting the Puri/Mendi
fractured limestone.


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.

Contact Information