Dear Retailers

[Tree]

From the Chief Executive Officer

A New Chapter for InterOil

The decision to sell our refinery and distribution businesses to Puma Energy is a logical step in the growth of InterOil as a major regional energy company and one that maximises opportunities for Papua New Guinea. It enables us to further strengthen our financial position and to focus on high-value exploration and LNG development. This is our future; these are the opportunities to extract greatest value for our shareholders and the people of Papua New Guinea.

Puma Energy is a world-class downstream business operator, committed to growing its business in Papua New Guinea and retaining all staff at the refinery and downstream distribution businesses. We thank the staff for their dedication and loyalty and wish them the very best. We are sure they will embrace the huge opportunity that Puma Energy offers across its operations in more than 40 countries.

The rest of us at InterOil still have much to do in an exciting future as a large and growing employer in Papua New Guinea. Our exploration and appraisal program involves up to eight wells in the next 18 months and we are busy preparing for development of the LNG project at Elk-Antelope in the Gulf Province. Strategic focus and financial discipline have enabled us to create valuable new opportunities. Those same qualities will continue to guide us.

Dr. Michael Hession

[jft310]

Note Hession says LNG plant location in the Gulf Province.

[Tree]

Note Hession says LNG plant location in the Gulf Province.

WRONG!!!  Read and re-read!!!  LNG plant has been renamed Antelope LNG and it WILL NOT be in Gulf Province.  It WILL BE adjacent to PNG LNG.

Bank on it.  Wild expectation #1.

[jft310]

Let's see wild expectations or the CEO speak in the last 24 hours???

Geez that's a tough one ,!

[ArtM72]

Note Hession says LNG plant location in the Gulf Province.

WRONG!!!  Read and re-read!!!  LNG plant has been renamed Antelope LNG and it WILL NOT be in Gulf Province.  It WILL BE adjacent to PNG LNG.

Bank on it.  Wild expectation #1.

I've taken your advice and reread this line several times: "development of the LNG project at Elk-Antelope in the Gulf Province"

"LNG project at Elk-Antelope" sounds pretty clear, whether or not the prepositional phrase "in the Gulf Province" refers to where E/A is or where the LNG plant will be located.  Maybe the good Dr. misspoke.

[Getitrt2]

Hession has good English, but English grammar is not among his primary strengths. That phrase is open to interpretation, and I would advise against reaching any conclusions from it. I would need to hear "LNG project in the Gulf Province", and would still have questions.

[Tree]

Hession has good English, but English grammar is not among his primary strengths. That phrase is open to interpretation, and I would advise against reaching any conclusions from it. I would need to hear "LNG project in the Gulf Province", and would still have questions.

...we are busy preparing for development of the LNG project at Elk-Antelope in the Gulf Province.

Surprised Jim didn't read that the LNG project was to be built at Elk-Antelope.

Translation is:  'Prep work for the LNG project is being performed at E/A in Gulf Province'

Location of LNG plant is why IOC made such a big deal about being E/A being 300 km closer to Port Moresby than Hides is for PNG LNG in the AGM presentation.  If 'Antelope LNG' was to be in The Gulf as "Gulf LNG' was proposed it would make sense to highlight the distance comparison of ~90 km vs PNG LNG's 600 km.

[ArtM72]

Prep work for the LNG project has been being performed at E/A in Gulf Province for a decade. When Hession says something it might be perfectly transparent but you have to read it with a fun mirror.

Check out TheStreet article. http://www.thestreet.com/story/12760951/...-deal.html. A good one although it has some computer generated trash in it.

[jft310]

Rereading I think Trees right. I think he's saying to the reporter who might not have known that Elk Antelope is located in Gulf Province . That the would fit with the AGM presentation. Plant in Port Moresby .friend called Meg for clarification.

I told him build it on Mars just build the darn thing. Hoho