InterOil's Board OKs Increased Capital Spending Plans

InterOil Corp.

InterOil's Board of Directors has approved an increase in capital spending. Following the June 8th closing of a $70 million registered direct stock offering, the Company believes that it is in the best financial condition in its history. The Company intends to take advantage of the opportunities created by the global downturn in industry activity to accelerate its upstream activities.

InterOil is currently inspecting a number of drilling rigs and intends to purchase an additional drilling rig. InterOil is also planning to acquire additional seismic data to delineate the Elk/Antelope structure and to prioritize a number of adjacent prospects. This increased activity should accelerate our growth plans and position us to develop and derive value from our asset base.