InterOil Announces Increased Capital Spending Plans



    THE WOODLANDS, Texas, June 22 /CNW/ -- InterOil Corporation (NYSE:   IOC)
(POMSoX:IOC) is pleased to announce that its board of directors has approved
an increase in capital spending. Following the June 8th closing of a $70
million registered direct stock offering, the Company believes that it is in
the best financial condition in its history. The Company intends to take
advantage of the opportunities created by the global downturn in industry
activity to accelerate its upstream activities. InterOil is currently
inspecting a number of drilling rigs and intends to purchase an additional
drilling rig. InterOil is also planning to acquire additional seismic data to
delineate the Elk/Antelope structure and to prioritize a number of adjacent
prospects. This increased activity should accelerate our growth plans and
position us to develop and derive value from our asset base.
    

    COMPANY DESCRIPTION
    
    InterOil Corporation is developing a vertically integrated energy
business whose primary focus is Papua New Guinea and the surrounding region. 
InterOil's assets consist of petroleum licenses covering about 4.6 million
acres, an oil refinery, and retail and commercial distribution facilities, all
located in Papua New Guinea.  In addition, InterOil is a shareholder in a
joint venture established to construct an LNG plant on a site adjacent to
InterOil's refinery in Port Moresby, Papua New Guinea.
    
    InterOil's common shares trade on the NYSE in US dollars.

    

    FOR INVESTOR RELATIONS ENQUIRIES:

    
    Wayne Andrews                             Anesti Dermedgoglou
    V. P. Capital Markets                     V.P. Investor Relations
    Wayne.Andrews@InterOil.com                Anesti@InterOil.com
    The Woodlands, TX USA                     Cairns Qld, Australia
    Phone: 281-292-1800                       Phone:  +61 7 4046 4600

    Cautionary Statements

    
    This press release may include "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 the InterOil expects, believes
or anticipates will or may occur in the future are forward-looking statements,
including in particular the Company's financial conditions and the timing and
execution of future capital spending plans. These statements are based on
certain assumptions made by the Company based on its experience and perception
of current conditions, expected future developments and other factors it
believes are appropriate in the circumstances.  No assurances can be given
however, that these events will occur.  Actual results will 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 SEDAR, including but not limited to those in the Company's
Annual Report for the year ended December 31, 2008 on Form 40-F and its Annual
Information Form for the year ended December 31, 2008.  In particular, there
is no established market for natural gas in Papua New Guinea and no guarantee
that gas from the Elk/Antelope field 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 and its Annual Information Form available on SEDAR at
www.sedar.com.

    %SEDAR: 00008794E




For further information:

For further information: Wayne Andrews, V. P. Capital Markets,
+1-281-292-1800, Wayne.Andrews@InterOil.com, or Anesti Dermedgoglou, V.P.
Investor Relations, +61 7 4046 4600, Anesti@InterOil.com, both of InterOil
Corporation Web Site: http://www.interoil.com

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InterOil Corporation

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