(07-17-2012, 11:22 AM)petrengr1 Wrote: I would like to highlight some of the points made on the Presentation made at the AGM on June 15th.

http://www.interoil.com/presentation/2012-06-15_AGM_Final-1.pdf

Chart 3

Achievements Since 2011 Annual General Meeting
Profitable annual results

Recorded an annual profit for the 2011 year of $17.7 million

Strengthened Balance sheet to over $1 billion in assets

Refined product sales volumes increased by 8%
Pacific Rubiales investment

Signed a binding Heads of Agreement with Pacific Rubiales Energy on a 10.0% net participating interest in the PPL237

Staged initial cash payments totaling US$116 million

Carry of an additional 25% of the expenditures associated with exploration and delineation activities and a final resource payment
Sell Down Process Nearing Completion

Working with a short list of qualified bidders

Advancing binding agreements on conforming bids

All Bids accretive to shareholders, top bids at a multiple to share value
Discovered another significant resource at Triceratops

DST #9 flowed at 28 mmcfd from the top 750 feet of the estimated 2,200 feet of reservoir

Triceratops-2 delineation well test results established the Triceratops structure as a significant discovery in PNG

Currently setting casing to test possible liquid hydrocarbons in lower 1450 feet of reservoir
Next exploration prospects are ready to drill

Completed seismic data acquisition and interpretation on three additional reef targets

Drilling locations identified for exploration wells in PPL 236 and PPL 238

Chart 5

LNG Partnering and Elk and Antelope Sell Down Process Nearing Completion
Working with a short list of qualified bidders

All bidders capable of satisfying the 2009 LNG project agreement

Financing and other requirements for closure include:
 Funding for purchase of interest in E/A
 Funding and approvals for development plan
 Off-take commitments
 Board Approvals
Advisors improving competitive bids

Significant interest in InterOil’s LNG project by internationally recognized LNG partners

Competitive tension maximizes the value of the resource to all stakeholders

Bids values today are multiples higher than first offers
Advancing binding agreements on conforming bids

Require detailed binding agreements

Multi-Billion dollar arrangements with significant upfront payments

The ideal balance to maximize IOC shareholder value is a sale of 25% to 32.5%

Minimal preconditions and PNG government acknowledgement
Bids accretive to shareholders

Minimum bid price under discussion is substantially accretive to the implied current market value of the company’s certified resources

Upper range is multiple times higher than the current valuation
Management’s highest priority

Completing a transaction and achieving final investment decision (FID) as soon as possible

PNG government acknowledgement is required and should be a priority after the election

Chart 16

PRL 15 Commitment Wells

InterOil plans to move both rigs to PRL 15

Rig #2 to drill Antelope-3

Rig #3 to drill Elk-3
Well locations to reduce resource risk

Shift C3 and C2 resource to C2 and C1

Onshore, near coast (75 Km)

Chart 26


The Acquisition of the PPL236 and PPL238 strike lines are complete

Both lines appear to confirm four way dip closure.

The Wahoo Build up is large approximately 7.5 to 8 km in strike length and preliminary mapping suggest the Wahoo/Mako trend may have a structural closure of approximately 18,039 acres(73 sq. Kilometres).

Chart 35

Near term corporate goals:

Maintain positive EBITDA from our operating businesses and have a positive year end financial outcome

Complete Triceratops #2 and file a PRL for Triceratops Development

Continue LNG pre-investment to drive the development timeline and reduce EPC contractor and Strategic LNG Partner bid risks
IOC LNG Activities

Our sell down and partnering process has now reached a stage where we expect to be able to demonstrate to the DPE, in the coming weeks, our ability to abide by all of the terms of the 2009 LNG Project Agreement.

This accords with our stated intention since the previously announced engagement of advisors for this process at the end of last year.

The best outcome for our shareholders is balanced gas monitization stragey, represented by a sale of 25% to 32.5% of the Elk and Antelope fields to a recognized LNG partner

InterOil, and the partner we select, intends to bring an LNG processing facility to Papua New Guinea of a nature and in a manner which will be satisfactory to the State.