InterOil Ties-In New Production Well in Peru's South Mirador Area

InterOil has just completed the second last well of the 2008 drilling program (12 wells in total) in the new South Mirador Area. The well produces 800 bopd and is tied into the existing production facilities. InterOil has a 100% interest.

Total production from the new South Mirador Field has already exceeded 4,400 bopd. This has been achieved since the discovery of the Field in June 2008. The last well is in the Eastern part of the Area, and encountered hydrocarbons in the reservoir as expected. The well has been logged and will be tested within a few days.

InterOil has now commissioned a 3D survey in the South Mirador area, which will take 4 to 6 months to complete and analyse. This survey will support InterOil's 2009 Development Plan for the whole Mirador area. Preliminary analysis of the South Mirador drilling suggests that some 20 more wells can be drilled within the proven area. This number will be adjusted upon completion of the 3D survey.

"The South Mirador discovery in Peru is proving to be a significant development for InterOil. In addition to the main Field have we also proven and tested hydrocarbons to the west of the Field. The new seismic 3D survey will provide us with information to what is the lateral extent of the Field. In addition to the already existing production, total production from Peru is now close to 7,000 bopd.

The final well was drilled just before year end, has been logged, and is also expected to be a good producer. In total this will bring us very close to our forecasted production of 10,000 bopd from Peru and Colombia, which is a major milestone for InterOil," said Nils N. Trulsvik, CEO of InterOil E&P ASA.