Interesting Points on the AGM Presentation

[petrengr1]

http://www.interoil.com/iocfiles/documen...%20ASM.pdf

Slide Page 3

InterOil: Clear Path, Disciplined Focus

Sell-down progressing as planned

Signed Term Sheet with ExxonMobil Papua New Guinea Ltd. (EMPNG)

Major items both commercial and technical are already agreed in a detailed term sheet

EMPNG, InterOil and Pacific LNG are engaged in discussions on finalizing a binding agreement

Monetizing sufficient resource to cover our share of infrastructure costs and fund exploration while retaining maximum upside for IOC equity interest

Post-negotiations, InterOil and Pacific LNG have clear path to resource monetization

Management changing to lead next phase

Global search advanced for new CEO to lead InterOil through next stage of development; Promising interest and talent pool

Sir Wilson Kamit CBE, former Governor of the Bank of Papua New Guinea and Chairman of its Bank Board, nominated for election to the Board of Directors

Isikeli (Keli) Taureka has joined InterOil as Executive Vice President of Corporate Development and Government Relations, after 17 years leading projects and corporate divisions at Chevron

Disciplined focus on value creation

Sharp focus on upstream resource development; Our skill is in exploration and drilling

Monetizing solutions for remaining resources; This will involve international partners

Cash proceeds will go to investing in exploration and proving reserves

Slide Page 4

World-Class Partner with ExxonMobil (EMPNG) on PRL 15 Development

InterOil has entered into exclusive negotiations with EMPNG on the development of PRL 15, which comprises the Elk and Antelope fields

The negotiations between InterOil / Pacific LNG and EMPNG came as the result of a commercial bidding process

Major commercial terms had already been agreed before entering exclusive negotiations aimed to achieve a binding agreement

The transaction has been discussed with the Government of PNG in general terms and any future agreement will be subject to PNG Government approval

The proposed transaction contemplates EMPNG purchasing an interest in PRL 15, representing 4.6 Tcf of 2C resource, that is sufficient to supply gas to develop an additional LNG train which could be located at the Company’s Konebada site

There will be staged payments before and after production commences to compensate for resource revisions

InterOil and Pacific LNG will be funded to drill additional delineation wells in the Elk and Antelope fields, which will be followed by recertification of the resource

The purchase of an interest in PRL 15 is not contingent on recertification

The resource recertification will be used to determine the economic interest in the license and to allocate upstream capital costs

InterOil and Pacific LNG will have the option to either develop a second LNG project in the Gulf Province that may use additional gas from PRL 15 and potentially other discoveries, such as Triceratops, or pursue further cooperation with EMPNG

Slide Page 5

Facts Regarding Our Proposed Transaction

EMPNG, InterOil and Pacific LNG are currently engaged in negotiations towards a Sales and Purchase Agreement (SPA).

Discussions between EMPNG, InterOil and Pacific LNG on price and equity remain subject to a confidentiality agreement.

InterOil believes the best strategy to develop its resources is a dual-development path; with EMPNG at its PNG LNG facility, and an LNG facility in the Gulf Province.

The transaction has been discussed with the PNG Government and any future agreement will be subject to their final approval.

If the gas is processed at PNG LNG it will require partner approvals. Those discussions are expected to commence in 3Q 2013 after the Elk/Antelope SPA is executed.

PNG would benefit from this potential transaction in a number of ways: An additional train at the PNG LNG Project is an efficient means to develop and monetize 4.6 TCF of

the Elk Antelope resource.

The utilization of existing infrastructure that will already be in place creates strong synergies and cost savings for all stakeholders, and allows for early development of the Elk / Antelope resource.

InterOil believes that the economic benefits to the existing project partners and the country of Papua New Guinea are compelling.

http://www.oilsearch.com/Media/docs/1306...d0d1-0.pdf

Slide 18 shows the four seismic lines to be run in PPL 237 and PPL 338

Look at IOC’s Slide 18 at http://www.interoil.com/iocfiles/documen...%20ASM.pdf

So we will have two seismic lines in North Triceratops and two seismic lines in Northwest Triceratops. Seismic work will be done by IOC and paid for by Oil Search. This work will show whether or not the Triceratops structure extends into PPL 338. Apparently Oil Search and their partner Total have the “right” to take up or earn 70% (35% to Oil Search and 35% to Total) by drilling wells. They (Oil Search and Total) have apparently not decided to take up that equity yet (see their slide) but will decide, after reviewing the seismic data, whether or not to drill and take up the equity in PPL 338. After obtaining the seismic data it will be interpreted separately by IOC and Oil Search.

Comment: I think additional seismic lines are needed before PRE drills in the IOC portion of Triceratops (PPL 237 or PRL?). I think IOC will do the seismic work and PRE will pay for 35% (10% + 25% carry). It is my understanding that they are presently obtaining seismic data at the Raptor prospect. I am hoping that the first well PRE drills will be at Raptor. Since much emphasis is being placed on developing known resources first by both IOC and the Government, it is probably more likely that the first well will be at Triceratops.

[sageo]

Pet- Thanks for the fine post! Lots of great info. I too am hoping PRE will drill Raptor first, but as you say ,they will probably go with Tricera instead.

[admin]

Yes, sageo, I second that. What a problem, drilling Raptor or Triceratops, haha. Actually it's a toss up, I think. Triceratops is already a discovery, but we need a couple of wells to hit the sweet spot and/or prove the extensity of the field, since seismics show it's enormous. Raptor would be a new discovery, if the drilling yields positive results, of course. I'm inclined to go for Triceratops first, prove more gas and liquids there, which could strengthen the case for a gulf LNG.

[Getitrt2]

I think PRE should bring in two rigs and drill both at the same time!!! Ha! They originally scheduled two wells for this year, anyway.

Pet, who has the PPL 338 lease now? Take up the equity from whom?

[petrengr1]

Kina has the original license. They farmed out 70% to Oil Search who has to earn the farm out by doing an agreed amount of drilling and geophysical work. Oil Search farmed out half of their 70% to Total. Each will have 35% and Kina will retain 30% assuming the partners perform the required work to earn their farm-out percentages. That is all from memory but I think it is accurate.

[ArtM72]

FWIW Colin expressed some disappointment about PRE not yet having moved on the drilling campaign. The explanation given was they were holding back until the new seismics were in. I don't get the linkage but that's what was offered.

There might well be something going on in 237 of a commercial nature. Ford stated different bidders asked for and received different data sets outside PRL15. Parallel deal? Dunno.

[sageo]

Thanks gentlemen for your responses to Pet's great info. Pet , on slide/page 18 I couldn't locate the (proposed) 4 new seismic lines, but I did see the yellow dash lines to the north and northwest . If the new seismics do extend Tricera into these areas, won't this make Tri the largest (in sq.kms) reservoir in the country of PNG ?? ( maybe another "claim to fame" by Interoil ??

[petrengr1]

Sageo- You have to look at the Oil Search slide 18 to see the location of the seismic lines. Then you can look at the IOC slide 18 to see where they would be in relation to the North and Northwest Triceratops Field on the IOC slide.

I believe Triceratops is already by far the largest field in PNG on a geographical basis based on the seismic. What we need is some more wells to the North and Northwest to prove productivity and the seismic picture. If Oil Search likes what they see on the new seismic they will drill a well on their side of the lease line in PPL 338. If they drill, that will give us some information (good or bad) for the North or Northwest part of the field, depending on where they drill.

[sageo]

[quote='petrengr1' pid='25099' dateline='1372427483'] Sageo- You have to look at the Oil Search slide 18 to see the location of the seismic lines. Then you can look at the IOC slide 18 to see where they would be in relation to the North and Northwest Triceratops Field on the IOC slide. I believe Triceratops is already by far the largest field in PNG on a geographical basis based on the seismic. What we need is some more wells to the North and Northwest to prove productivity and the seismic picture. If Oil Search likes what they see on the new seismic they will drill a well on their side of the lease line in PPL 338. If they drill, that will give us some information (good or bad) for the North or Northwest part of the field, depending on where they drill. [/quote

Thanks for clearing that up for me ! sageo

[sageo]

Yes, sageo, I second that. What a problem, drilling Raptor or Triceratops, haha. Actually it's a toss up, I think. Triceratops is already a discovery, but we need a couple of wells to hit the sweet spot and/or prove the extensity of the field, since seismics show it's enormous. Raptor would be a new discovery, if the drilling yields positive results, of course. I'm inclined to go for Triceratops first, prove more gas and liquids there, which could strengthen the case for a gulf LNG.

Admin-Thanks for your post. The more I go back and cogitate on Henry A. and Dave H.'s remarks about IOC's potential, I truly believe most folks are not realizing Interoil's prospective future greatness if they survive as a company.(there are oil and gas companies out there that would "kill" for IOCs set of prospects) . Sometimes I wish I were 62 instead of 82 ! If we survive,the next decade could very well let everyone know where PNG is located on the map.If Oneill and Duma would shake hands and go forward, they could be known as their country's heroes. More schools, more hospitals and more good roads . All would give them a quality country . ( pardon me if I rambled!) Sometimes I guess I get too pensive. Good luck.