InterOil Corporation

InterOil Corporation

March 11, 2005 08:00 ET

InterOil Provides Operational Update on Papua New Guinea Refinery


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: INTEROIL CORPORATION

TSX SYMBOL: IOL
ASX., AMEX SYMBOL: IOC

MARCH 11, 2005 - 08:00 ET

InterOil Provides Operational Update on Papua New
Guinea Refinery

TORONTO, ONTARIO--(CCNMatthews - March 11, 2005) - InterOil Corporation
(TSX:IOL)(AMEX:IOC)(ASX/POMSoX:IOC), a Canadian company with operations
in Papua New Guinea, today announced the arrival of a crude cargo at its
refinery on March 10, 2005. This cargo was in substitution for the
previously scheduled supply from the Kumul Terminal in Papua New Guinea.
InterOil had suspended operations at its refinery on February 28, 2005
as a result of the declaration of a force majeure by Oil Search at its
Kumul Terminal.

InterOil recommenced operations at its refinery on March 10, 2005. The
10-day shut-down period was used constructively for elective maintenance
and upgrading activities that had been planned for a later date. The
modifications carried out during this period are expected to result in
the production of a larger volume of higher margin refined product and
to further optimize production from our refinery.

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
    Gary M Duvall
    V.P., Corporate Development
    +1 281 292 1800
    gary.duvall@interoil.com
    Houston, TX USA
    or
    InterOil Corporation
    Anesti Dermedgoglou
    V.P., Investor Relations
    +617 4046 4600
    anesti@interoil.com
    Cairns, Qld Australia