Wayne Andrews:

  Thank you, Roxanne, and hello everyone. This is Wayne Andrews, VP of Capital

  Markets for InterOil Corporation. Before we start, I want to briefly remind

  everyone that some of the statements made during this conference call

  constitute forward-looking statements within the meaning of the U.S.

  Securities laws, including such statements as those regarding expectations of

  future results, general financial performance, future business prospects, and

  strategies.

  These statements are based on management's current expectations and are

  subject to a number of risks and uncertainties which could cause actual

  results to differ materially from those described in the forward-looking

  statements. Investors are cautioned not to place undue reliance on these

  statements.

  Additional information about factors that could cause our results to differ

  materially from those in the forward-looking statements can be found in the

  company's filings with the U.S. Securities and Exchange Commission and SEDAR.

  The speakers from management on the call today are Gaylen Byker, our

  Chairman; Bill Jasper, President; Collin Visaggio, CFO; and Dave Holland.

  Upstream Manager.

  We have a presentation to accompany our comments today. The presentation can

  be accessed on our website at www.interoil.com. You can find the link under

  the Investor Relations section on the homepage.

  At this time, I'd like to turn the call over to Dr. Gaylen Byker. Please go

  ahead, Gayle.

  Gaylen Byker:

  Thank you, Wayne, and thank you, all for participating in today's First

  Quarter Results Conference Call. Please forgive the sound of my voice as I'm

  having some problems with allergies today but let's try to be as articulate

  as possible. I'd like to start with a brief summary of our first quarter

  context and results, and Collin Visaggio, our CFO, will provide additional

  financial details.

  We are pleased to announce that our operating businesses in refining and

  downstream continue to generate profits that support the investment

  expenditures and our development segments have upstream and midstream

  liquefaction. Our first quarter profit was $4 million compared to $9.4

  million in the same period a year ago. The variance is largely driven by

  weakening of the PNG Kina during the quarter compared to the strengthening of

  the Kina a year ago.

  Despite a slightly weakening in the first quarter, the continuing strength of

  the PNG economy was affected from the profitability of our operating

  businesses. Bill Jasper will review our operating business over on the call.

  Additionally, we are approaching to have the developing segments of upstream

  and midstream liquefaction where our investments today are being leased to

  create value for the future.

  Directly addressing our partner selection process, we are well aware that our

  shareholders are eager for us to conclude the long running sell-down and LNG

  partnering process. I assure you that we too are eager to complete this

  process as our potential partners and the PNG government. And all parties

  remain hard at work and moving the process forward.

  On today's call, we will detail a number of changes in PNG, the LNG industry

  and at NOL that create a favorable environment in which to complete our

  partner in process. First, PNG, following the election last year, the

  parliament has formed the strongest coalition government in the country's

  history. The current prime minister has been given an unprecedented 30 months

  before a vote of no confidence can be taken, underscoring a stability of the

  current administration.

  A major objective of the O'Neill administration is to build critical

  infrastructure in the country including railways and power generation. In

  line with this goal, the PNG state has reorganized the entities that managed

  the government's interest in petroleum projects and the current and former

  prime ministers of PNG will act as voting members of the new entity.

  Next in the LNG industry, the forecasted growth in demand for LNG and the

  natural depletion of existing reserves means that there's a constant need to

  bring on new LNG projects. At the same time, one Australian project has been

  canceled and two others are significantly delayed. Cost overruns on other

  projects already under construction had caused the dominant LNG players to

  reevaluate their portfolios. The tension between these two trends has

  resulted in an ever greater interest in new LNG projects with attractive

  economics.

  And finally at InterOil, we too have been positioning for the next phase of

  growth. Our progress in defining our resource, particularly at the Antelope

  field has demonstrated a high quality reservoir capable of supporting live

  scale LNG development. The Triceratops discovery were on early delineation

  stage, provides an opportunity for further upside to our resource estimates.

  On the corporate governance front, our company's board and senior management

  have begun positioning the company for the next phase of its development.

  InterOil's founding CEO, Phil Mulacek, an accomplished entrepreneur, has

  retired after building the multi-billion dollar New York Stock Exchange

  listed trading company from scratch. We are thankful for Phil's many years of

  dedication and hard work and pleased that he will advise the company as we

  continue our very successful exploration program and finalize our LNG

  partnering arrangements.

  We have engaged Spencer Stuart to conduct a global search for a new CEO to

  lead the company to its next stage of development. Discussions with a number

  of candidates, several with project management experience are underway and we

  look forward to introducing the next leader of InterOil. Our eight members of

  the Board of Directors will make the decision on our LNG partnering process

  independent of our CEO search.

  The company and its investment banking advisers are in final discussions with

  multiple partners, including major oil companies and a national oil company,

  each of whom we believe if chosen would satisfy the PNG Government's

  objectives. This is an advantageous position for us to be in and we believe

  that it is best to allow our advisers and our board the time they need to

  finalize the most beneficial transaction for our stakeholders.

  The PNG government has been kept apprised of our discussions and

  [indiscernible] (07:22) to support our plans to partner with a qualified

  operator. This will be a multi-billion dollar transaction and we are

  fortunate to be on a competitive process. We appreciate your patience and

  support and are confident of a successful outcome.

  On the upstream businesses, I'm glad to report that the Department of

  Petroleum and Energy has approved well commitment variations on PPL 236 and

  PPL 238. This allows us to focus on further delineating our existing

  resources at Elk, Antelope, and Triceratops.

  All of our licenses are in good standing. As we have previously announced,

  the joint venture operating agreement relating to the operations in Petroleum

  Retention License 15 and Petroleum Prospecting License 237 have been approved

  by the Ministry of Petroleum and Energy and registered under the Oil and Gas

  Act.

  With the incoming partners, the joint venture intends to finalize the

  development plan for the LNG project and complete the proper documentations

  to move the LNG project forward.

  A gas agreement with the PNG state, which is currently being drafted by the

  government, we should receive our 2009 project agreement and control the

  project development. It will be finalized with the government and the LNG

  partner we select.

  Dave Holland will comment on our current upstream operations and future

  drilling, and plans a little bit later in the call. I'd now like to turn the

  call over to CFO, Mr. Collin Visaggio, to cover the financials in more

  detail.

  Collin F. Visaggio:

  Thanks, Gaylen, and welcome to everyone listening to today's presentation. As

  Gaylen stated, our net profit for the quarter ended March 31, 2013, was $4

  million. The operating segments of corporate, midstream, refining, and

  downstream, collectively derived a net profit for the quarter of $18.5

  million, mainly due to an increase in gross margins attributable to the

  positive crude and product price movements and higher margins from export

  cargos.

  Our balance sheet remains robust with our debt to capital ratio at 19%. As of

  the 31st of March 2013, our total book assets amounted to $1.4 billion and

  our total liabilities amounted to $589 million. Our current ratio and quick

  ratio were 1.5 times and 0.8 times respectively. The quick ratio was below

  our internal target of 1. However, the closing of the selldown transaction

  whereby party will participate in the development of the LNG project and

  acquire an interest in the Elk and Antelope fields will bring this ratio well

  below our internal target.

  The farm-in agreement with Pacific Rubiales Energy was completed during the

  quarter and we received a completion settlement from Pacific Rubiales of $56

  million on Marcy 24, 2013.

  Firstly, summarizing our results of the group. As mentioned, our operating

  business segments had a combined net profit of $18.5 million and the

  investments in our developing business segments resulted in a net loss of

  $14.5 million for a consolidated profit of $4 million. Our EBITDA for the

  quarter was $18 million.

  The decrease in net profit after tax for the quarter compared to $5.4 million

  in the same period of 2012 was mainly the result of a $15.6 million increase

  in foreign exchange losses due to the weakening of the PNG Kina against the

  U.S. dollar. The foreign exchange rate decreased from 0.4755 to 0.4675.

  Compared to the first quarter of 2012, the foreign exchange rate had

  increased during that period from 0.4665 to 0.4820 and the one-off transfer

  of $7.8 million in foreign exchange gains previously included in other

  comprehensive income to the profit and loss upon repayment of certain

  intercompany loans during the prior quarter ended March 31, 2012, and a $1.7

  million increase in other income primarily attributable to the lower covering

  of expenses related to upstream construction and drilling-related activities.

  These decreases in profit had been partially offset by a $6.9 million

  reduction in exploration cost incurred primarily for the seismic activity on

  PPL 236 in the prior period, and a $4.7 million decrease in income tax

  expenses resulting mainly from the lower downstream current quarter profit

  earned and the impact of unfavorable foreign exchange movements impacting

  temporary differences and translation of the non-monetary assets of the

  midstream refinery operation using period in-rates.

  The total volume of all product sold by us was 2.4 million barrels for the

  quarter ended March 31, 2013 compared with 2.2 million barrels in the same

  period of 2012. A full detailed analysis for your review is available in the

  press release and in the filed financials and Management Discussion and

  Analysis document.

  Analyzing the cash position of the group, as of the 31st of March, 2013, we

  had cash, cash equivalents and cash restricted of $107 million. Since the

  start of 2013, we have spent $7 million on Antelope-3 drilling and testing

  rigs, $4 million on Elk-3 site preparation pre-spud, drilling and standby

  works, $3 million on the Gulf LNG project, $20 million on other upstream

  infrastructure works and $4 million on the operating business maintenance

  upgrades.

  As of the 31st of March 2013, the company has capacity to increase debt

  levels. Based on existing book values, a gearing of 50% allows open debt of

  some $600 million, more than sufficient available cash as we continue

  progress towards achieving our near-term strategic objectives.

  During the quarter ended March 31, 2013, we filed a new shelf of $1 billion,

  which will add to our financial flexibility. We had focused on our strategic

  plan to monetize the Elk and Antelope fields through an integrated

  development project.

  As of March 31, 2013, $384 million has been spent on the Elk and Antelope

  fields. $52 million on the LNG joint venture, $141 million on construction

  equipment, roads, logistics and site works associated with the upstream

  development sites. And $53 million has been spent on the condensate

  stripping, front-end engineering and design. In addition, we have spent $74

  million on the Triceratops-2 field.

  We're working very closely with the government of PNG to keep them updated on

  the strategic partnering process and the licensing applications. We're

  certainly very excited about the opportunities ahead of us and we look

  forward to maintaining momentum and concluding the strategic partner process

  and certifying the requirements of the government and the stakeholders to

  proceed to final investment decision on the Gulf LNG project.

  With that, I will hand back to Gaylen.

  Gaylen J. Byker:

  Well, thank you, Collin. I'd like to move on to the refinery and downstream

  operations, so I'll pass the call to our president, Mr. Bill Jasper.

  William J. Jasper:

  Thanks, Gaylen, and good morning, everyone. I'm pleased to report that the

  first quarter of this year has produced another quarter of great gross

  refining margin for the refinery, and that is at 19.9 million gross refining

  margin for the quarter.

  This quarter was notable as being the highest ever quarterly run rate for the

  refinery at 27,500 barrels a day per calendar day, and the highest level of

  sales for any quarter. The main reason for this is our switch to a

  naphtha-rich crude diet as the premiums for these crudes are currently much

  lower than the higher value middle distillate crudes which we traditionally

  prefer. As a result, we are running the refinery at higher rates to meet the

  diesel demand and overall gaining a higher grossing margin.

  Domestic sales remain very strong with this quarter only marginally lower

  than the first quarter of 2012 which was a record quarter for the refinery.

  When combined with the increased naphtha exports, this results in a record

  total sales level for the quarter. The downstream business has a sales volume

  for the first quarter of 2013 were 183.7 million liters which is a 2.8%

  decrease on the volume sold in the first quarter of 2012.

  The PNG economy has slowed slightly in the first quarter as the construction

  phase of the ExxonMobil at the LNG project nears completion and the

  construction contractors complete their projects. This trend may continue in

  the short term.

  Our retail business accounted for approximately 15% of our total downstream

  sales in the first quarter and we continued to invest in new fourth quarter

  technology and in new retail fuel distribution systems.

  During the quarter, we reopened one new retail site after it was purchased

  from our previous dealer and completely refurbish. We were also about to

  commence operations on two newly constructed truck stop commercial sites. And

  our safety record at the end of the first quarter of 2013 has a refinery

  achieving a total of 5.2 million man hours without a lost time injury. This

  great achievement coupled with our continued focus in the remainder of the

  corporation [ph] had us  (18:28) with just over 9 million man hours without a

  lost time injury.

  And with that Gaylen, I'll turn it back to you.

  Gaylen Byker:

  Thank you, Bill. We'll move on to exploration and production. I'll hand the

  call over to General Manager of Exploration, Mr. Dave Holland.

  David Holland:

  Thanks, Gaylen. Good morning, everyone. [Inaudible] (18:51) in providing an

  update on our exploration activities. In the first quarter of 2013, we

  completed the Antelope-3 Well and our resources [ph] actually the,

  [indiscernible] (19:01) Elk, Antelope and Triceratops fields. As reported in

  the last call, the very positive results of Antelope-3 and Triceratops-2,

  this quarter took  (19:11) net resource base to over 1 billion barrels oil

  equivalent on a 2P basis.

  During this quarter, we continued work finalizing infrastructure at Hou Creek

  (19:21) and Herd base, which will support further appraisal drilling of

  Antelope and our new discovery, Triceratops. During this quarter, we also

  completed the farm-In with our new partner, Pacific Rubiales Energy into our

  PPL 237. And shortly after, as a new joint venture [indiscernible] (19:45)

  replication for Petroleum Retention License over the Triceratops gas fields.

  The Triceratops gas field discovery has generated significant interest and

  InterOil has finalized an agreement to acquire a joint project program

  covering the areas of the North Triceratops and the North West Triceratops

  prospects which based on the current mapping of the seismic extend from PPL

  237 into our neighboring license PPL 338. The PPL 338 joint venture were for

  most of this program. We see this as a very positive step and recognition of

  the perspective potential of this new discovery.

  In other regulatory activity during the quarter, the DPE approved our joint

  venture operating agreement riding to operations in PRL 15. Also following

  success of the Triceratops gas discovery and the better than expected results

  in Elk-3, we have had the said discussions with the DPE and our forward focus

  in priorities. We've included our clear mutual objective is to focus on

  progressing the Gulf LNG project.

  Subsequently, we applied for variations to modify our well commitments for

  our licenses PPL 236 and PPL 238. And on March 28 of this year, the DPE

  approved the variations and the deferral of the well commitments for both PPL

  236 and 238.

  So in summary, we look forward to resume in seismic acquisition with PPL 238

  early next week and after that, resumption of our drilling program with the

  Elk-3 well once our partnering for the LNG project is finalized. We remain

  excited by the prospectivity of our  licenses and look forward to the

  opportunity to make further announcements on our future exploration of

  seismic and drilling activity as our plans are finalized.

  Now with that, I would like to hand you back to Gaylen.

  Gaylen J. Byker:

  Well, thank you, Dave. So in closing, I'd like to assure everyone that the

  InterOil Management and Board of Directors are firmly committed to our

  stakeholders. My mandate as Chairman and Interim CEO is to drive this well

  down and partnering process to close in as swiftly as possible while

  maximizing the value for all.

  We look toward to working with a qualified LNG partner, simultaneously

  creating value for our stakeholders, and satisfying the objectives with the

  PNG government. We are excited to be in the final stage of our LNG partnering

  process. We thank our shareholders, our staff, our co-workers, our partners

  in the PNG government for their continued support.

  That concludes our prepared remarks and we will now open the call up for

  questions.

Q&A

  Operator:

  Our first question comes from the line of Evan Calio with Morgan Stanley.

  Please go ahead.

  <Q - Evan Calio>: Yes, good morning, guys, and good evening to some. I just

  wanted to congratulate Phil Mulacek who's largely responsible for the vision

  and formation of InterOil and wish him the best going forward.

  Let me start with a question on his replacement now with Gaylen. You

  mentioned that the CEO and sell down process are independent. But just to

  clarify, I mean do you intend or does the Board need to announce a new CEO

  prior to the finalization of the partnership sell-down process or is the

  board going to complete this prior to determining who the next leader is?

  <A - Gaylen Byker>: No. We will not have to announce a new CEO before we go

  to the next step in the partnering process. Both are quite independent and we

  anticipate that we will be announcing the partnering process before we find

  the new CEO.

  <Q - Evan Calio>: Excellent. And then - I mean generally, there's clearly a

  lot of transformative events on the horizon for the company and then maybe

  ultimate options - or multiple options today. And the change in the CEO, only

  the firms second and first outside the founders one of them. I mean, can you

  discuss generally what the board is looking for? Are there particularly

  different skill set or a different vision of InterOil going forward or might

  this even be a fluid process here?

  <A - Gaylen Byker>: I can give you just a brief summary of the board's

  perspective is that we'll transition from being a very entrepreneurial

  company to being a much more highly-developed and diversified operation. And

  we're looking for someone with very extensive management experience, but

  also, experience with explorations and production and with LNG project

  development. The growth of the company I think has been astonishing and we

  need to make sure that we have a sustainable management structure and

  processes and procedures and people to carry it to a whole new level.

  <Q - Evan Calio>: Got it. Maybe I can shift gears on a question, if I could,

  on the seismic joint venture that you announced today.  Can you discuss where

  oil searches block is relative or how close the border of that block is

  relative to the Triceratops discovery? I mean, do you believe that the

  structure extends across the lease line into their structure, and obviously,

  is there agreement to fund the seismic, indication of some potential for a

  unitization or something in that regards?

  <A - Collin Visaggio>: Yes, sure. I think it's probably best if people have

  access to the presentation or you caught me out, but at least take note of

  the map on page 18, and there, you'll see the - outlined in yellow is the

  prospective area, the North Triceratops and the Northwest Triceratops. Also

  on that map is the PPL 338 license and PPL 237 license down here.

  From that, you can see that based on the current mapping  of the existing

  seismic that both of those prospects extends north into PPL 338 and that in

  terms of that, I mean after the acquisition of seismic and mapping, I believe

  that the joint venture would be looking to drill a well as part of the

  farming process that, although such an undertaking, with the current loss

  with all the cleanup petroleum. If that were to be a discovery, then

  obviously they're on track in - under the European PNG Oil & Gas Act, we will

  be looking at work requirements to form a unit.

  <Q - Evan Calio>: Is there any kind of volumetric on the area and their

  closure of where that structure is? You care to mention the size of that

  structure for us?

  <A - Collin F. Visaggio>: Well, except on there I think the total closure we

  think [ph] with what we can map (27:47) just in seismic, is at the order of

  around 128 square kilometers for the prospective area. However, we believe

  that that extends westward our current seismic control and potentially

  extends east of our seismic control.

  So, we will be looking to reduce seismic after this joint program and we

  would definitely be focusing on testing the limits of the closure and also

  focusing on significant other potential prospects that we have in PPL 237.

  We've - based on the gravity, we believe we have a number of gravity

  anomalies which run between Triceratops to the west and Elk and Antelope to

  the east. And we think and believe that this is a real - potentially a

  significant resource trend that with the addition of seismic in this area

  that we would be looking to mature probably at least two more prospects on

  that trench between Triceratops and Elk and Antelope.

  <Q - Evan Calio>: And in terms of new activity, I mean is it safe to say that

  you're not - you won't be drilling or spending additional CapEx until a deal

  is signed? Is it like reduced InterOil's financial obligations with regard to

  those wells? Is that an accurate statement?

  <A - Collin F. Visaggio>: Yes, that's an accurate statement.

  <Q - Evan Calio>: Great. I'll leave it there, guys. Thank you.

  Operator:

  Our next question comes from the line of Pavel Molchanov with Raymond James.

  Please go ahead.

  <Q - Pavel Molchanov>: Thanks very much. First, just on the timing for

  partnership announcement. Correct me if I'm wrong, is there a June 30

  deadline under the existing project agreement to reach a partnership deal or

  is that not the case?

  <A - Gaylen Byker>: No, there is not. There's a number of parts to your

  question there that or least implications of your questions. The 2009 project

  was entered into the different projects in mind and pre-dates the current

  partnering process. It's our expectation that when the partnering process is

  completed, we, together with our partners, will negotiate a gas agreement

  with the state. And by the way, the state has already started drafting and

  that will replace the project agreement.

  The gas agreement is the way that PNG state under the Oil & Gas Act usually

  controls the development of an LNG project. There may be some changes but we

  expect that most of the provisions in the project agreement will be

  incorporated into the gas agreement and it is not a deadline for the

  partnering process.

  Now the partnering process is a multiple negotiations and a major

  multi-billion dollar project and it has long-term significance for all of the

  InterOil stakeholders. And so that isn't going to be rushed, but those two

  are not in the same category in terms of timing.

  <Q - Pavel Molchanov>: Okay, understood. Another question on kind of the

  regulatory front. Last November when the cabinet approved the revised

  project, there was a cabinet committee forum that was supposed to negotiate a

  gas purchase from the Antelope field for the purpose of domestic gas

  projects, power plants and so on. Has that committee been in discussions with

  the company and what is the status of that?

  <A - Gaylen Byker>: Yes. State negotiating team has met with the company on a

  number of occasions and has basically suspended the process other than the

  drafting of the gas agreement until the partner agreement is confirmed.

  <Q - Pavel Molchanov>: Okay. And then just last one from me, have you

  disclosed the names of the final bidders to the government and has the

  government explicitly told you that all of them qualify under the

  government's criteria?

  <A - Gaylen Byker>: The government is aware of all of the people that we are

  negotiating with and they are in the category that the government has said

  they would approve.

  <Q - Pavel Molchanov>: Okay. Thank you very much.

  Operator:

  Our next question comes from the line of Chris McDougall with Westlake

  Securities. Please go ahead.

  <Q - Christopher McDougall>: Good morning, gentlemen. A few questions on the

  joint venture operating interim on Triceratops into 37. So now that you've

  laid out and gotten agreement approved, could you just share with us a little

  bit more on what the plans are there? You've got the seismic as the next step

  and then have you identified well locations and kind of the timing of those?

  And what level of that work is going to be carried over the next year from

  the Rubiales agreement.

  <A - Collin F. Visaggio>: Okay, we had an agreed work program between

  InterOil and particularly, Rubiales Energy which forms the basis of the

  funding of the farming. There's a carry associated with that and we will be

  looking to complete a program that's at least 250 kilometers of seismic with

  PRE and multiple wells. At this stage, we are completing some of our

  technical studies we had - and we will have several technical committee

  meetings before we finalize that. But at this stage, mostly we'd be looking

  to pick up the seismic...

  <Q - Christopher McDougall>: Hello?

  <A - Collin F. Visaggio>: Feels like we've lost them.

  <Q - Christopher McDougall>: So perhaps we lost part of the group. Who's

  still on the call?

  Operator:

  Your lines all are still connected. This is the operator. All lines are still

  connected.

  <A - Collin F. Visaggio>: Except for Singapore, you can - just call in and

  see if I can find out what's going on. Gaylen, we've just lost the office

  there. Okay, okay. Operator, they're about to dial back in.

  Operator:

  Yes, we'll watch for them.

  <A - Collin F. Visaggio>: He was talking about the multi-well program.

  Operator:

  And your line is back on the conference.

  <A - Gaylen Byker>: Sorry about that.

  <A - David Holland>: Yes, sorry about that. I think I just got most of the

  way through my answer before it cut out. I think just my conclusion I think

  to that was that we would be looking to acquire additional seismic after this

  joint program with the PPL 238 joint venture and we will be looking to use

  that seismic to mature our well locations for Triceratops' appraisal. And

  then also, mature well locations for exploration on that new trains that I

  identified earlier.

  <Q - Christopher McDougall>: Okay, and those wells are planned for 2014

  drilling or what do you expect?

  <A - Collin F. Visaggio>: We would be looking when you think of this stage to

  - as a target to potentially spot a well either at Triceratops or appraisal

  well and an exploration well this year. And if the seismic are particularly

  well, then we may look at accelerating an exploration well into this year as

  well.

  <Q - Christopher McDougall>: Great. And while we're talking about seismic, so

  oil search working with you guys on their seismic program. How much,

  approximately do you think they're spending on this where you're getting the

  full benefit of it but not having to spend...

  <A - Collin F. Visaggio>: At this stage, I think that's commercially

  insensitive. I really can't comment on that.

  <Q - Christopher McDougall>: Okay, fair enough. And then let's see, Dr.

  Byker, just to clean up the language a little better, make sure our

  expectations are aligned. Is there any difference between a super-major and a

  major oil company in your communication with the market?

  <A - Gaylen Byker>: No.

  <Q - Christopher McDougall>: I'm sorry, I think you said no.

  <A - Gaylen Byker>: The answer is no, there is not a distinction. How major

  is it is a common term and okay.

  <Q - Christopher McDougall>: Fair enough. And I guess at higher level, Dr.

  Byker, I wanted to give you an opportunity just to talk a little bit more on

  your strategy for coming into the Interim CEO role and as you look to select

  the CEO will the partnership chosen kind of the winning bidding contingent.

  Will that have a bearing on the CEO selection or are those completely

  independent?

  <A - Gaylen Byker>: Just to comment, I have been involved in the InterOil for

  17 years, so I think I understand the trajectory quite well. Secondly, on

  choosing the CEO, we really, I think, keep those two things separate. We're

  looking at a long-term project to develop multi-billion dollar facility and

  we need to be drilling and doing seismic. It's a fairly, I think, extensive

  company for its size and we need a CEO who can manage that. And I don't think

  that the partnering process will affect what we're looking for or what we

  select.

  <Q - Christopher McDougall>: Great. And building on that comment about the

  kind of long nature of this opportunity, the current expectations are for the

  first stage here to be around the 4 million ton a year train, but I would

  assume, there is some expectations, and I'd love to get them some more color

  around that, that that would be a starting point and what can TCF of gross

  gas in the area that you would expect to add a second train in the kind of

  coming years. Is that a fair expectation?

  <A - Gaylen Byker>: Yes, it is. And I think that with Dave described in

  Triceratops and some of other prospects, we anticipate that this will be a

  series of opportunities for train to be developed over the coming years.

  <Q - Christopher McDougall>: Great. Thanks. And then we've seen in the news

  that just - well, I guess my questions would be I'd love to understand the

  little difference between Gulf province and the Highlands region as it

  relates to population density and potential land owner relationships? And

  just to understand how you've advanced along the way of managing all the

  stakeholders in the region of potential development.

  <A - Gaylen Byker>: The Gulf region is a very lightly populated part of Papua

  New Guinea, not merely as dense as the highlands. And the development of the

  area is also far less advanced. And my sense is that we have done a lot more

  work upfront than it has done in the highlands. And that the number of

  landowners and the level of cooperation has been really at a boom for us and

  there's no problems to date. And we've done a lot of work in the area and

  we're doing a lot in community development and education and healthcare.

  Even though we've never taken the renewed sources out of the region yet, we

  understand that. And I think that both the number of people and the level of

  cooperation are very much in our favor.

  <Q - Christopher McDougall>: Great. Thanks. Collin, a couple of last

  questions for you on the income statement, there was an uptick in the legal

  and professional fees during the quarter. Assuming that relates to the

  agreement and I want to get a sense of what we should expect going forward

  and if you could provide any color on the split for those expenses between

  the bankers and potentially lawyers that might be drafting agreements.

  <A - Collin F. Visaggio>: Yes. Sure. In terms of the consent, the uptick is

  related to the asset sell down process. And in terms of going forward,

  obviously again, it's a commission with sensitive matter between ourselves

  and the investment banks so I really don't want to go into the detail of

  that.

  <Q - Christopher McDougall>: Okay. Fair enough and thank you very much. Look

  forward to hearing more results.

  Operator:

  And at this time, there are no other questions in queue. Please continue.

  Wayne Andrews:

  And that ends the formal remarks from the call. We'll be available to take

  questions and I thank you all for your participation today and look forward

  to updating you on our next quarterly briefing. Thank you.

  Operator:

  And, ladies and gentlemen, that does conclude our conference for today. Thank

  you for your participation and for using AT&T executive teleconference

  service. You may now disconnect.

This transcript may not be 100 percent accurate and may contain misspellings

and other inaccuracies. This transcript is provided "as is", without express or

implied warranties of any kind.

Hey Gator, next time don't take so long to get the CC transcribed

'efi426hemi' pid='22392' datel Wrote:

Hey Gator, next time don't take so long to get the CC transcribed

Keep it on Ice,

Hemi

Sorry, I would have had them sooner, but it appears that I share the same internet service provider as IOC, I had a blackout this AM.

Also from Page 17:

"Delineation plans include seismic data acquisition and 6 additional wells at Triceratops.

-Seismic data indicates there is an enormous attic in terms of height and areal extent to the south, west and

northwest of the Triceratops-2 well.

-We believe Triceratops-2 is a significant discovery well and the southern potential reefal attic and the western

attic will be our focus during the forward seismic and well program.

-Final negotiations have been completed for InterOil to acquire a seismic program over part of neighbouring

licence PPL338 and northernmost PPL237.

-The seismic will be funded by the PPL338 Joint Venture

-During the Quarter an independent resource Assessment of the Triceratops field was completed by GLJ Petroleum Consultants. The assessment based on data available at year end 2012."

Have to wonder who all is involved in the "PPL 338 Joint Venture".