InterOil Announces 2013 Results

Focus Now on LNG Partnership and Drilling Program

SINGAPORE and PORT MORESBY, Papua New Guinea, March 31, 2014 /CNW/ - InterOil Corporation (NYSE:IOC; POMSoX:IOC) (the "Company") announced today record revenues and products sold in its financial results for the full year ending December 31, 2013.

The year also resulted in new leadership at InterOil and agreement with Total S.A. of France to develop the multi-billion-dollar Elk-Antelope gas field in Papua New Guinea.

In March this year, InterOil also launched the start of a new US$300 million drilling program across four new petroleum prospecting licenses ("PPLs").

Front Rank of Asian Energy Companies
InterOil's Chief Executive, Dr. Michael Hession, said: "This past year was a milestone for InterOil. With new leadership and management, we moved quickly to bring greater stability to our operations in a way that would translate into improved performance and greater market confidence.

"Crucial to this was securing agreement with an oil major to develop on the Elk-Antelope gas field in Petroleum Retention License 15.

"In October 2013, the board approved InterOil's largest exploration and appraisal program and one of the biggest in Papua New Guinea's history. We then accelerated preparation for exploration wells on our PPLs so we could drill as soon as we received the government approval.

"In March this year, approval was given and we successfully acquired the rights to the same acreage as we previously held, for the next six years.

"In March this year, we closed the sales and purchase agreement with Total S.A. of France to develop Elk-Antelope as a multi-billion-dollar LNG project for Papua New Guinea.

"These developments, together with our oil refinery and distribution businesses, position InterOil among the front rank of Asian energy companies.

The Right Team at the Right Time
"To deliver on this potential and realize the value of these assets, we have assembled an experienced, talented management team. In the final months of the year, new senior executives stepped into roles that they would formally assume early in 2014.

"InterOil's growth and success depend heavily on the quality of this senior team to guide our exceptional staff and oversee our energy assets and I am confident that we now have the right team to realize InterOil's full potential.

"We also took significant steps to streamline our operations, bearing down on costs and rationalizing our offices and staffing. We announced the closure by the end of 2014 of our Cairns office, with the transfer of most functions to our office in Port Moresby. Though painful, it was important to align InterOil and ensure we focus our human and financial resources where they can have the greatest impact.

Operating Growth, Developing Growth, Future Growth
"These steps are integral to the strategy that I laid out on my appointment in July.

"This strategy has three horizons, detailing our vision to be a world-class company developing world-class resources with world-class people who have a passion for working together, doing good work and making a difference.

"Horizon One is operating growth: running an efficient and financially stable business, with capital to support investment, low costs, strong skills and capacity, and streamlined processes.

"Horizon Two is developing growth: monetizing our gas resources through partnerships with world-class operators.

"Horizon Three is future growth: investing in new exploration across frontier regions in Papua New Guinea and the region and being a partner or operator of choice for new ventures.

Cash in Hand to Pursue an Aggressive Drilling Program
"In short, we want to make the most of what we already have; turn probable opportunities into realities; and work our possibilities hard so they can become realities.

"This year, we took important steps towards each horizon. The business, at year's end, was stable, assets were being monetized, and we had scaled-up our exploration work.

"The receipt of $401 million as part of the completion of the Total agreement will leave us with a well-capitalized balance sheet to aggressively pursue our exploration program.

"We ended 2013 in excellent shape, and begin 2014 in a position to make InterOil the company its staff, management, shareholders, and other stakeholders, want it to be and know it can be."

Financial Highlights

  • Financial and operating results for the fourth quarter and full year ended December 31, 2013, showed record revenues of $1,400 million (2012: $1,321 million) on the back of record total products sold of 9.4 MMbbls (2012: 8.5 MMbbls), an 11% increase from the year before and the largest volume ever sold by the Company. This included a record throughput of 27,999 barrels per day (bbls/d) from the refinery (2012: 24,483 bbls/d) and 738 million liters of downstream sales (2012:753 million liters). At December 31, 2013, the Company continued to operate the only refinery in Papua New Guinea and was the largest downstream and retail distributor with 52 service stations, 18 depots and 12 aviation sites.
  • During 2013, investments in development of Upstream and Midstream Liquefaction resulted in a net loss of $75.1 million (2012: net loss of $59.6 million). This was balanced by Corporate, Refining and Downstream collectively recording a net profit for the year of $34.7 million (2012: $61.2 million). The consolidated $40.4 million net loss compared to a $1.6 million profit in 2012 was mainly driven by the Papua New Guinea kina depreciating 13% against the US Dollar leading to a consolidated $41.2 million in exchange rate losses.
  • At December 31, 2013, the Company had cash, cash equivalents and cash restricted totaling $115.2 million (December 31, 2012: $98.7 million), of which $53.2 million is restricted (December 31, 2012: $49.0 million). In addition, the Company had aggregate undrawn facilities of $308.0 million, including $150.0 million in relation to a Credit Suisse facility to fund the Company's current exploration program, and $158.0 million of working capital facilities to fund the operating business. The Company's gearing levels measured by the debt-to-capital ratio was 26% in December 2013 from 19% in December 2012.

Conference Call Information
The full text of the news release and accompanying financials are available on the company's website at www.interoil.com.

A conference call will be held on March 31, 2014, at 8:30 a.m. US Eastern time (8:30 p.m. Singapore) to discuss the financial and operating results, the development of PRL15, the new drilling program and as well as the company's outlook.

The conference call can be heard through a live audio web cast on the company's website at www.interoil.com or accessed by dialing (800) 230-1096 in the US, or +1-(612) 332-0107 from outside the US.

A replay of the broadcast will be available soon afterwards on the website.

Summary of Consolidated Quarterly Financial Results for Past Eight Quarters


Quarters ended

2013

2012

($ thousands except per share data)

Dec-31

Sep-30

Jun-30

Mar-31

Dec-31

Sep-30

Jun-30

Mar-31

Upstream

1,731

1,918

2,533

1,862

4,136

2,216

1,727

2,284

Midstream – Refining

353,749

251,725

289,300

305,172

301,925

274,671

236,006

302,310

Midstream – Liquefaction

181

-

20,089

-

-

-

-

-

Downstream

213,835

215,651

199,470

208,046

220,512

201,749

223,620

218,974

Corporate

31,832

31,714

36,201

34,923

37,552

26,880

24,742

24,757

Consolidation entries

(202,426)

(195,773)

(201,932)

(199,672)

(207,686)

(178,652)

(186,991)

(210,174)

Total revenues

398,902

305,235

345,661

350,331

356,439

326,864

299,104

338,151

Upstream

(19,974)

(2,842)

(19,478)

(1,311)

(873)

956

(5,730)

(6,374)

Midstream – Refining

10,246

(3,562)

840

12,701

12,370

13,417

(42,647)

18,933

Midstream – Liquefaction

87

2,550

19,850

(123)

192

11

672

(1,410)

Downstream

14,366

14,962

7,542

10,062

12,258

9,275

11,102

21,414

Corporate

6,055

13,446

1,745

10,044

14,133

9,841

9,975

9,188

Consolidation entries

(16,082)

(14,647)

(11,146)

(13,418)

(12,199)

(14,503)

(9,871)

(14,216)

EBITDA (1)

(5,302)

9,907

(647)

17,955

25,881

18,997

(36,499)

27,535

Upstream

(33,535)

(16,206)

(32,046)

(13,774)

(13,081)

(10,936)

(15,532)

(17,244)

Midstream – Refining

74

(11,074)

(4,675)

5,855

13,401

5,358

(32,969)

11,320

Midstream – Liquefaction

(430)

2,373

19,284

(681)

(394)

(573)

93

(1,969)

Downstream

9,237

9,435

4,346

6,005

7,716

5,626

6,045

13,195

Corporate

2,787

10,780

(1,701)

7,342

10,519

7,849

8,445

6,270

Consolidation entries

(2,946)

(1,626)

1,562

(744)

384

(1,988)

2,205

(2,136)

Net (loss)/profit

(24,813)

(6,318)

(13,230)

4,003

18,545

5,336

(31,713)

9,436

Net (loss)/profit per share (dollars)









Per Share – Basic

(0.51)

(0.13)

(0.27)

0.08

0.38

0.11

(0.66)

0.20

Per Share – Diluted

(0.51)

(0.13)

(0.27)

0.08

0.38

0.11

(0.66)

0.19



(1)

EBITDA is a non-GAAP measure and is reconciled to IFRS under the heading "Non-GAAP Measures and Reconciliation" in our MD&A filed on www.sedar.ca and with the SEC".


InterOil Corporation

Consolidated Balance Sheets

(Expressed in United States dollars)








As at














December 31,

December 31,

December 31,

January 1,


2013

2012

2011

2011


$

$ (revised) *

$ (revised) *

$ (revised) *






Assets





Current assets:





Cash and cash equivalents (note 5)

61,966,539

49,720,680

68,575,269

232,424,858

Cash restricted (note 7)

36,149,544

37,340,631

32,982,001

40,664,995

Short term treasury bills - held-to-maturity (note 7)

-

-

11,832,110

-

Trade and other receivables (note 8)

98,638,110

161,578,481

137,796,513

49,004,667

Derivative financial instruments (note 7)

-

233,922

595,440

-

Other current assets

1,054,847

832,869

862,049

498,302

Inventories (note 9)

158,119,181

194,871,339

171,071,799

127,137,360

Prepaid expenses

8,125,270

8,517,340

5,477,596

3,593,574

Total current assets

364,053,491

453,095,262

429,192,777

453,323,756

Non-current assets:





Cash restricted (note 7)

17,065,000

11,670,463

6,268,762

6,613,074

Plant and equipment (note 10)

244,383,962

255,031,257

246,031,378

225,166,865

Oil and gas properties (note 11)

584,807,023

510,669,431

362,852,766

255,294,738

Deferred tax assets (note 12)

48,230,688

63,526,458

35,965,273

28,477,690

Other non-current receivables (note 18)

29,700,534

5,000,000

-

-

Investments accounted for using the equity method (note 24)

17,557,838

-

-

-

Available-for-sale investments (note 13)

-

4,304,176

3,650,786

-

Total non-current assets

941,745,045

850,201,785

654,768,965

515,552,367

Total assets

1,305,798,536

1,303,297,047

1,083,961,742

968,876,123

Liabilities and shareholders' equity





Current liabilities:





Trade and other payables (note 14)

134,027,347

178,313,483

156,598,973

72,521,373

Income tax payable

17,087,974

11,977,681

4,085,137

955,074

Derivative financial instruments (note 7)

1,869,253

-

11,457

178,578

Working capital facilities (note 15)

36,379,031

94,290,479

16,480,503

51,254,326

Unsecured loan and current portion of secured loans (note 16)

134,775,077

31,383,115

19,393,023

14,456,757

Current portion of Indirect participation interest (note 17)

12,097,363

15,246,397

540,002

540,002

Total current liabilities

336,236,045

331,211,155

197,109,095

139,906,110

Non-current liabilities:





Secured loans (note 16)

65,681,425

89,446,137

26,037,166

34,813,222

2.75% convertible notes liability (note 21)

62,662,628

59,046,581

55,637,630

52,425,489

Deferred gain on contributions to LNG project (note 24)

-

5,191,101

4,700,915

4,694,936

Indirect participation interest (note 17)

7,449,409

16,405,393

34,134,840

34,134,387

Other non-current liabilities (note 18)

96,000,000

20,961,380

-

-

Asset retirement obligations (note 19)

4,948,017

4,978,334

4,562,269

-

Deferred tax liabilities (note 12)

-

-

1,889,391

-

Total non-current liabilities

236,741,479

196,028,926

126,962,211

126,068,034

Total liabilities

572,977,524

527,240,081

324,071,306

265,974,144

Equity:





Equity attributable to owners of InterOil Corporation:





Share capital (note 20)

953,882,273

928,659,756

905,981,614

895,651,052

Authorized - unlimited





Issued and outstanding - 49,217,242





(Dec 31, 2012 - 48,607,398)





(Dec 31, 2011 - 48,121,071)





2.75% convertible notes (note 21)

14,297,627

14,298,036

14,298,036

14,298,036

Contributed surplus (note 20)

26,418,658

21,876,853

25,644,245

16,738,417

Accumulated Other Comprehensive Income

4,541,913

25,032,953

29,380,882

9,261,177

Conversion options (note 17)

-

12,150,880

12,150,880

12,150,880

Accumulated deficit

(266,319,459)

(225,961,512)

(227,565,221)

(245,217,682)

Total equity attributable to owners of InterOil Corporation

732,821,012

776,056,966

759,890,436

702,881,880

Non-controlling interest

-

-

-

20,099

Total equity

732,821,012

776,056,966

759,890,436

702,901,979

Total liabilities and equity

1,305,798,536

1,303,297,047

1,083,961,742

968,876,123






See accompanying notes to the consolidated financial statements

* Revised to effect transition to IFRS 11 - Joint arrangements, refer note 2(c)(ii) for further information


InterOil Corporation

Consolidated Income Statements

(Expressed in United States dollars)






Year ended






December 31,

December 31,

December 31,


2013

2012

2011


$

$ (revised)*

$ (revised)*





Revenue




Sales and operating revenues

1,395,698,906

1,308,051,816

1,106,533,853

Interest

81,699

247,882

1,356,122

Other

4,347,963

12,257,833

11,058,090


1,400,128,568

1,320,557,531

1,118,948,065





Changes in inventories of finished goods and work in progress

(36,752,158)

23,799,540

43,934,439

Raw materials and consumables used

(1,222,760,734)

(1,242,987,054)

(1,064,866,361)

Administrative and general expenses

(37,664,297)

(40,576,580)

(40,188,605)

Derivative (losses)/gains

(6,157,231)

(4,229,190)

2,006,321

Legal and professional fees

(11,169,769)

(5,187,704)

(5,150,107)

Exploration costs, excluding exploration impairment (note 11)

(18,793,902)

(13,901,558)

(18,435,150)

Finance costs

(28,603,278)

(28,614,981)

(18,163,769)

Depreciation and amortization

(23,411,336)

(21,855,228)

(20,111,016)

Gain on conveyance of oil and gas properties (note 11)

500,071

4,418,170

-

Gain/(loss) on available-for-sale investment (note 13)

3,719,907

-

(3,420,406)

Foreign exchange (losses)/gains

(41,209,608)

(40,260)

25,031,788

Share of net profit/(loss) of joint venture partnership accounted

for using the equity method (note 24)

2,275,090

(490,186)

(2,662,204)


(1,420,027,245)

(1,329,665,031)

(1,102,025,070)

(Loss)/profit before income taxes

(19,898,677)

(9,107,500)

16,922,995





Income taxes




Current tax expense (note 12)

(13,453,725)

(15,883,469)

(5,512,842)

Deferred tax (expense)/benefit (note 12)

(7,005,545)

26,594,678

6,248,509


(20,459,270)

10,711,209

735,667





(Loss)/profit for the period

(40,357,947)

1,603,709

17,658,662





(Loss)/profit is attributable to:




Owners of InterOil Corporation

(40,357,947)

1,603,709

17,652,461

Non-controlling interest

-

-

6,201


(40,357,947)

1,603,709

17,658,662





Basic (loss)/profit per share

(0.83)

0.03

0.37

Diluted (loss)/profit per share

(0.83)

0.03

0.36

Weighted average number of common shares outstanding




Basic (Expressed in number of common shares)

48,793,986

48,352,822

47,977,478

Diluted (Expressed in number of common shares)

48,793,986

49,357,256

49,214,190





See accompanying notes to the consolidated financial statements

* Revised to effect transition to IFRS 11 - Joint arrangements, refer note 2(c)(ii) for further information


InterOil Corporation

Consolidated Statements of Comprehensive Income

(Expressed in United States dollars)








Year ended








December 31,

December 31,

December 31,



2013

2012

2011



$

$

$






(Loss)/profit for the period

(40,357,947)

1,603,709

17,658,662






Other comprehensive (loss)/income:




Items that may be reclassified to profit or loss:




Exchange (loss)/gain on translation of foreign operations, net of tax

(20,245,215)

(5,001,319)

20,527,270

(Loss)/gain on available-for-sale financial assets, net of tax

(245,825)

653,390

(407,565)

Other comprehensive (loss)/income for the period, net of tax

(20,491,040)

(4,347,929)

20,119,705

Total comprehensive (loss)/income for the period

(60,848,987)

(2,744,220)

37,778,367






Total comprehensive (loss)/income for the period is attributable to:




Owners of InterOil Corporation

(60,848,987)

(2,744,220)

37,772,166

Non-controlling interests

-

-

6,201



(60,848,987)

(2,744,220)

37,778,367







See accompanying notes to the consolidated financial statements


InterOil Corporation

Consolidated Statements of Changes in Equity

(Expressed in United States dollars)








Year ended








December 31,

December 31,

December 31,



2013

2012

2011

Transactions with owners as owners:

$

$

$

Share capital





At beginning of year

928,659,756

905,981,614

895,651,052


Issue of capital stock (note 20)

25,222,517

22,678,142

10,330,562


At end of year

953,882,273

928,659,756

905,981,614

2.75% convertible notes





At beginning of year

14,298,036

14,298,036

14,298,036


Conversion of convertible notes during the year (note 21)

(409)

-

-


At end of year

14,297,627

14,298,036

14,298,036

Contributed surplus





At beginning of year

21,876,853

25,644,245

16,738,417


Fair value of options and restricted stock transferred to share capital

(12,380,121)

(11,649,459)

(5,598,009)


Stock compensation expense

4,770,971

7,882,067

14,721,387


Gain on conversion of 2.75% convertible notes

75

-

-


Loss on buyback of non-controlling interest

-

-

(217,550)


Waiver of all remaining IPI conversion options (note 17)

12,150,880

-

-


At end of year

26,418,658

21,876,853

25,644,245

Accumulated Other Comprehensive Income





Foreign currency translation reserve





At beginning of year

24,787,128

29,788,447

9,261,177


Foreign currency translation movement for the year, net of tax

(20,245,215)

(5,001,319)

20,527,270


Foreign currency translation reserve at end of year

4,541,913

24,787,128

29,788,447


Gain/(loss) on available-for-sale financial assets





At beginning of year

245,825

(407,565)

-


(Loss)/gain on available-for-sale financial assets as a result of foreign currency translation, net of tax

(277,553)

449,413

(407,565)


(Loss)/gain on revaluation of available-for-sale financial assets, net of tax

(203,977)

203,977

-


Gain on disposal of available-for-sale financial assets, net of tax

235,705

-

-


Gain on available-for-sale financial assets at end of year

-

245,825

(407,565)


Accumulated other comprehensive income at end of year

4,541,913

25,032,953

29,380,882

Conversion options





At beginning of year

12,150,880

12,150,880

12,150,880


Transfer of balance to contributed surplus (note 17)

(12,150,880)

-

-


At end of year

-

12,150,880

12,150,880

Accumulated deficit





At beginning of year

(225,961,512)

(227,565,221)

(245,217,682)


Net (loss)/profit for the year

(40,357,947)

1,603,709

17,652,461


At end of year

(266,319,459)

(225,961,512)

(227,565,221)

Total InterOil Corporation shareholders' equity at end of year

732,821,012

776,056,966

759,890,436






Transactions with non-controlling interest





At beginning of year

-

-

20,099


Net profit for the year

-

-

6,201


Buyback of non-controlling interest

-

-

(26,300)


At end of year

-

-

-

Total equity at end of period

732,821,012

776,056,966

759,890,436






See accompanying notes to the consolidated financial statements



InterOil Corporation

Consolidated Statements of Cash Flows

(Unaudited, Expressed in United States dollars)






Year ended


December 31,

December 31,

December 31,


2013

2012

2011


$

$ (revised) *

$ (revised) *





Cash flows generated from (used in):








Operating activities




Net (loss)/profit for the year

(40,357,947)

1,603,709

17,658,662

Adjustments for non-cash and non-operating transactions




Depreciation and amortization

23,411,336

21,855,228

20,111,016

Deferred tax

15,295,770

(29,450,576)

(5,598,192)

Gain on conveyance of exploration assets

(500,071)

(4,418,170)

-

Accretion of convertible notes liability

3,617,760

3,408,951

3,212,141

Amortization of deferred financing costs

4,589,536

598,698

223,944

Timing difference between derivatives recognized and settled

2,103,175

350,061

(762,561)

Stock compensation expense, including restricted stock

4,770,970

7,882,067

14,721,387

Inventory write down

-

322,535

259,406

Accretion of asset retirement obligation liability

356,830

331,096

159,356

Non-cash settlement on PNGEI buyback

6,837,000

-

-

Gain on conversion of convertible notes

(500)

-

-

(Gain)/loss on Flex LNG investment

(3,719,907)

-

3,420,406

Share of net (profit)/loss of joint venture partnership accounted for using the equity method

(2,275,090)

490,186

2,662,204

Unrealized foreign exchange gain

(352,348)

(1,070,269)

(2,618,814)

Change in operating working capital




Increase in trade and other receivables

(21,273,999)

(43,579,657)

(54,630,047)

Decrease/(increase) in other current assets and prepaid expenses

170,092

(3,010,564)

(2,247,769)

Decrease/(increase) in inventories

30,610,288

(28,886,641)

(28,003,484)

Increase in trade and other payables

47,360,333

25,912,734

73,291,275

Net cash generated from/(used in) operating activities

70,643,228

(47,660,612)

41,858,930





Investing activities




Expenditure on oil and gas properties

(128,285,583)

(179,779,865)

(116,492,551)

Proceeds from IPI cash calls

29,942,167

3,497,542

749,794

Expenditure on plant and equipment

(25,951,297)

(30,855,107)

(36,874,794)

Proceeds from Pacific Rubiales Energy (conveyance accounted portion)

-

20,000,000

-

Maturity of/(investment in) short term treasury bills

-

11,832,110

(11,832,110)

Proceeds from disposal of/(acquisition of) Flex LNG Ltd shares, net of transaction costs

7,778,258

-

(7,478,756)

(Increase)/decrease in restricted cash held as security on borrowings

(4,203,450)

(9,760,331)

8,027,306

Change in non-operating working capital




Decrease/(increase) in trade and other receivables

5,000,000

5,000,000

(10,000,000)

(Decrease)/increase in trade and other payables

(17,744,539)

22,115,815

(6,399,657)

Net cash used in investing activities

(133,464,444)

(157,949,836)

(180,300,768)





Financing activities




Repayments of OPIC secured loan

-

(35,500,000)

(9,000,000)

(Repayments to)/proceeds from Mitsui for Condensate Stripping Plant

(34,375,748)

3,578,489

9,872,532

Proceeds from drawdown of Westpac secured loan

-

15,000,000

-

Repayments of Westpac secured loan

(12,857,000)

(2,143,000)

-

Proceeds from drawdown of BSP and Westpac secured facility (net of transaction costs)

33,835,101

-

-

Repayments of BSP and Westpac secured facility

(11,070,578)

-

-

Proceeds from drawdown of Credit Suisse secured facility (net of transaction costs)

93,042,488

-

-

Proceeds from Pacific Rubiales Energy for interest in PPL237 (net of transaction costs)

73,600,000

20,000,000

-

(Repayments of)/proceeds from working capital facility

(57,911,448)

77,809,976

(34,773,823)

(Repayments of)/proceeds from ANZ, BSP & BNP syndicated loan

(16,000,000)

95,924,091

-

Proceeds from issue of common shares, net of transaction costs

6,839,930

11,028,683

4,488,703

Payment on conversion of convertible notes

(1,546)

-

-

Net cash generated from/(used in) financing activities

75,101,199

185,698,239

(29,412,588)





Increase/(decrease) in cash and cash equivalents

12,279,983

(19,912,209)

(167,854,426)

Cash and cash equivalents, beginning of year

49,720,680

68,575,269

232,424,858

Exchange (losses)/gains on cash and cash equivalents

(34,124)

1,057,620

4,004,837

Cash and cash equivalents, end of year

61,966,539

49,720,680

68,575,269

Comprising of:




Cash on Deposit

31,738,440

49,086,353

18,487,116

Short Term Deposits

30,228,099

634,327

50,088,153

Total cash and cash equivalents, end of year

61,966,539

49,720,680

68,575,269






See accompanying notes to the consolidated financial statements

* Revised to effect transition to IFRS 11 - Joint arrangements, refer note 2(c)(ii) for further information


About InterOil
InterOil Corporation is an independent oil and gas business with a primary focus on Papua New Guinea. InterOil's assets include one of Asia's largest undeveloped gas fields, Elk-Antelope, in the Gulf Province, exploration licenses covering about 16,000sqkm, Papua New Guinea's only oil refinery, and retail and commercial petroleum distribution facilities throughout the country. The company employs more than 1100 people and has its main offices in Singapore and Port Moresby. InterOil is listed on the New York and Port Moresby stock exchanges.

Investor contacts for InterOil




Houston

Singapore

Wayne Andrews, Vice President Capital Markets

Don Spector, Chief Financial Officer

Wayne.Andrews@InterOil.com

Don.Spector@InterOil.com

Phone: +1-281-292-1800

Phone: +65-6507-0222



Meg LaSalle, Investor Relations Coordinator


Meg.LaSalle@InterOil.com


Phone: +1-281-292-1800




Media contacts for InterOil




John Hurst, Cannings


jhurst@cannings.net.au


Phone: +61 418 708 663


Forward Looking Statements
This press release includes "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 InterOil expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on our current beliefs as well as assumptions made by, and information currently available to us. No assurances can be given however, that these events will occur. Actual results could differ, and the difference may be material and adverse to the Company and its shareholders. 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. Some of these factors include the risk factors discussed in the Company's filings with the Securities and Exchange Commission and on SEDAR, including but not limited to those in the Company's Annual Report for the year ended 31 December 2013 on Form 40-F and its Annual Information Form for the year ended 31 December 2013. In particular, there is no established market for natural gas or gas condensate in Papua New Guinea and no guarantee that gas or gas condensate from the Elk and Antelope fields will ultimately be able to be extracted and sold commercially. Investors are urged to consider closely the disclosure in the Company's Form 40-F, available from us at www.interoil.com or from the SEC at www.sec.gov and its Annual Information Form available on SEDAR at www.sedar.com.

SOURCE InterOil Corporation

For further information:

http://www.interoil.com