InterOil Begins Multi-well Drilling Program in Papua New Gui

InterOil is planning the largest exploration drilling program on independent structures in the history of Papua New Guinea. This follows positive fiscal policy announced by the Government of Papua New Guinea.

The 6 - 8 well drilling program will commence with the drilling of the "Moose" prospect, which is located in exploration license PPL 230. InterOil is the sole owner and operator of this prospect which exhibits the qualities of a world class structure and a most likely recoverable reserve of 350 million barrels of oil.

The expected date of commencement of the drilling program is the first quarter of 2003. Mr. Andy Carroll, General Manager Exploration said, "The InterOil multi-well drilling program has the potential of making a significant discovery in the Eastern Papuan Basin". InterOil is the second largest holder of exploration licenses in PNG which includes PPL 230 that covers the prospective areas in the Eastern Papuan Basin.