InterOil Acquires Participation Interests in the Elk and Antelope Fields


    


    
</pre>
<p>CAIRNS, <span class="xn-location">Australia</span> and <span class="xn-location">HOUSTON</span>, <span class="xn-chron">Dec. 16, 2010</span> /CNW/ -- InterOil Corporation (NYSE:  IOC) (POMSoX:IOC) announced an acquisition of indirect participation interests held by investors under the Amended and Restated Indirect Participation Interest Agreement dated <span class="xn-chron">February 2005</span> (the "IPI Agreement"). The interests acquired total 1.05% participation in the Elk and Antelope fields in <span class="xn-location">Papua New Guinea</span> and in any future discoveries made as a result of four exploration wells still to be drilled under the IPI Agreement. In exchange for these interests, InterOil issued 546,507 common shares. InterOil's current interest in its exploration licenses is 75.6114 %, assuming that all remaining indirect participation interest investors take up their working interest rights in such licenses and excluding the interests that the Independent State of <span class="xn-location">Papua New Guinea</span> is able to assume under relevant legislation.</p>
<p/>
<p>The premium paid by the Company under these exchange transactions over the original investment made by the IPI investors will be recognized as an expense in accordance with the 'Extinguishment of Liability' accounting standard. This treatment will result in an expense adjustment of approximately <span class="xn-money">$23.1 million</span> to the profit and loss account for the quarter and annual results ended <span class="xn-chron">December 31, 2010</span>. There is no impact on the Company's net cash balance.</p>
<pre>
    

    COMPANY DESCRIPTION

    
</pre>
<p>InterOil Corporation is developing a vertically integrated energy business whose primary focus is <span class="xn-location">Papua New Guinea</span> and the surrounding region.  InterOil's assets consist of petroleum licenses covering about 3.9 million acres, an oil refinery, and retail and commercial distribution facilities, all located in <span class="xn-location">Papua New Guinea</span>.  In addition, InterOil is a shareholder in a joint venture established to construct an LNG plant in <span class="xn-location">Papua New Guinea</span>.</p>
<pre>
    

    InterOil's common shares trade on the NYSE in US dollars.

    
</pre>
<p>This press release shall not constitute an offer to sell or a solicitation of an offer to purchase any of these securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. The securities being offered have not been registered under the Securities Act of 1933 and may not be offered or sold in the <span class="xn-location">United States</span> absent registration or an applicable exemption from registration requirements. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.</p>
<pre>
    


    
</pre>
<p> </p>
<p> </p>
<p>FOR INVESTOR RELATIONS ENQUIRIES:</p>
<p> </p>
<pre>
    
    Wayne Andrews                        Meg Hunt
    V. P. Capital Markets                Investor Relations Coordinator
    Wayne.Andrews@InterOil.com           Meg.Hunt@InterOil.com
    The Woodlands, TX USA                The Woodlands, TX USA
    Phone: 281-292-1800                  Phone: 281-292-1800






    

For further information: For further information: Wayne Andrews, V. P. Capital Markets, Wayne.Andrews@InterOil.com, or Meg Hunt, Investor Relations Coordinator, Meg.Hunt@InterOil.com, both of InterOil Corporation, +1-281-292-1800 Web Site: http://www.interoil.com

Organization Profile

InterOil Corporation

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890