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[jft310]

Rig on location, Antelope-4

Latest Elk-Antelope well test data support a two train development Streamlining organization with operator transition in PRL15 Triceratops-3 reaches total depth with positive gas indications US$541 million liquidity at June 30, 2015 InterOil Corporation’s (NYSE: IOC; POMSoX: IOC) analysis of the latest well test data from the Elk-Antelope gas field in Papua New Guinea supports a two-train liquefied natural gas project.   In announcing financial results for the second quarter to June 30, 2015, InterOil Chief Executive Dr Michael Hession said the Antelope-5 well had exceeded all previous Antelope well results.   “Our latest appraisal results confirm our confidence that the field can support two trains,” Dr Hession said.   “Our latest downhole pressure data from flow testing shows clear connectivity across the field – that is, we see no evidence of compartmentalization either laterally or vertically.   “The testing also indicates a world-class, multi-darcy reservoir with strong deliverability, which should favorably influence development costs.”   Appraisal of Elk-Antelope is expected to finish later this year and will be followed by certification of the resource volume.   In the past two weeks, Total of France has assumed operatorship of the PRL15 joint venture and the Elk-Antelope field, which is being developed as the Papua LNG Project. The joint venture recently selected sites for gas field infrastructure, pipelines and the LNG plant, and is proposing to build Papua New Guinea’s second LNG facility next to the ExxonMobil-operated PNG LNG Project near Port Moresby.   Dr Hession said InterOil remained disciplined about capital allocation, would streamline its organization to account for Total becoming operator of PRL15, and would prioritize investment on proving up existing discoveries.   Highlights   Papua LNG Project    The formal change of operatorship from InterOil to Total was completed on August 1, 2015 with InterOil continuing to provide technical services for Total in PRL15 until the end of 2015 under the Operator Transition Agreement.   InterOil will continue to operate its remaining licenses in Papua New Guinea.   On July 2, 2015, the PRL 15 joint venture unanimously endorsed locations for key infrastructure sites for development of the Papua LNG Project.   The central processing facility will be near the Purari River in the Gulf Province, about 360km north-west of Port Moresby, and will be connected to the LNG facility by onshore and offshore gas and condensate pipelines.   Caution Bay near Port Moresby has been selected as the site for the LNG facility.   The site locations and pipeline corridors will be further refined as part of project development.   Selection of the final development concept is expected in the first half of 2016 when appraisal of the Elk-Antelope field has been completed.   This will be followed by front-end engineering and design with early works scheduled to begin later in 2016.   Work has also started on project financing for Papua LNG with the PRL 15 joint venture appointing financial, legal and tax advisors.   Elk-Antelope appraisal update   During the quarter, the Antelope-5 appraisal well was flow tested at different rates, with downhole gauges in Antelope-5 and Antelope-1 recording pressure variations during the flow test.   Detailed analysis of Antelope-5 and Antelope-1 pressure response data across the flowing and shut-in periods provided further confidence that the gas volumes seen by the Antelope-5 test support a two-train LNG project.   Consistent gas compositions and pressure across the field as well as recent flow test data from Antelope-5 and Antelope-1 suggest no evidence of compartmentalization.   On April 27, 2015, Antelope-4 was suspended due to drilling difficulties after intersecting dolomite in the top of the reservoir. A replacement rig has now started sidetrack operations.   Site preparation for Antelope-6 appraisal is nearing completion with drilling expected to begin after the completion of the Antelope-4 sidetrack.   It is expected that the certification payment from Total will occur in mid-2016.   Non-PRL15 operations   The Triceratops-3 appraisal well was spudded on June 15, 2015.   The well is about 5.6km west-north-west of Triceratops-1 and 35km north-west of the Elk and Antelope gas fields.   Triceratops-3 is targeting additional volumes north-west of previous appraisal wells and would provide tie-back potential to an LNG project if sufficient volumes are proven.   Triceratops-3 has penetrated the carbonate reservoir target with positive indications of gas and 13 meters of core was recovered. The well has now reached total measured depth of 2,090m (6,857ft) and preparations for wireline logging are underway.   This well has continued the improvement in our drilling team’s performance and was completed in 59 days, comparable with the Antelope-5 well.   The Wahoo sidetrack is being prepared for plugging and abandonment after sidetrack operations reached 1,589m (5,213ft) measured depth without intersecting any carbonate reservoir.   The well will assist in evaluating future targets in this frontier area.   At June 30, 2015, we had acquired high-resolution airborne gravity gradiometry over 65% of our 16,000sqkm of licenses and had completed seismic acquisition over Raptor, Bobcat and Triceratops.   Other matters           On August 1, 2015, Sheree Ford replaced Geoff Applegate, who retired as General Counsel and Company Secretary.   Ms Ford is an experienced corporate lawyer who has worked with BHP Billiton, Oil Search, Roc Oil and Pexco Energy.   Financial update   InterOil returned a loss of $32.5 million for the quarter, most of which comprised the reversal of $25.9 million of interest income, recognized in relation to the Total certification payment.   The adjustment was required with the certification payment now expected in mid-2016.   After net expenditure of $87 million, InterOil finished the second quarter with liquidity of $541 million, including cash and receivables of $241 million (June 30, 2014 – $610 million).   The credit facility of $300 million

[jft310]

Slide 9-antelope wells are at least as productive as the giant Arun field .in Malaysia . Antelope 5 the standout

[jft310]

Slide 11- IRR is higher than PNGLNG . Looks like 17 percent

[jft310]

Slide 15 -$540 million in liquidity

[jft310]

Slide 20- a 2 train build like PNGLNG yields $1 Billion per year to Interoil investors for 20 years in a row .

[Palm]

http://www.interoil.com/iocfiles/documen...tation.pdf

[Palm]

Antelope-5 achieved higher gas rates at lower draw- down pressures than any other carbonate gas reservoir on public record

[Palm]

Not so good but as some of us predicted:

"Certification payment expected in mid-2016"

[jft310]

Not so good but as some of us predicted: "Certification payment expected in mid-2016"

If the statement as least as productive as Arun proves out it will be well worth the wait . The payment is larger .

[johnwgrant]

From the MD&A (FWIW):
On July 8, 2015, we filed a final short-form base shelf prospectus in the Province of Alberta and with
the SEC pursuant to a registration statement on Form F-10 to enable us to add financial flexibility
and issue up to an aggregate of $1.0 billion of securities in one or more offerings for 25 months.
These issuances may consist of one or more of common shares, preferred shares, warrants, debt
securities or a combination thereof.