InterOil Closes $70.4MM Registered Direct Common Stock Offering

InterOil Corp.

InterOil has closed its previously announced 2,013,815 share common stock "registered direct" offering. InterOil has received gross proceeds of US $70,443,249 before deducting offering expenses.

Phil Mulacek, Chief Executive Officer of InterOil, commenting on the transaction said, "The opportunity presented by the Elk/Antelope discovery and surrounding prospects coupled with a lull in industry activity creates a unique advantage to ramp up exploration and development activity levels." Mr. Mulacek added, "This transaction further demonstrates investor support for our growth plans and positions us to develop and derive value from our high quality asset base."

"Following a steady improvement and simplification of our in capital structure, this transaction provides the additional funding necessary to progress our various plans," stated Collin Visaggio, Chief Financial Officer of InterOil. Adjusted for the conversion of our 8% Convertible Subordinated Debentures and this equity infusion, first quarter cash and cash equivalents would have totalled $130.2 million, secured debt excluding working capital facilities remained unchanged at $61.4 million, and shareholders' equity would have been $367.3 million.