Petropars Approves Farm-Out of Cabinda North License in Angola

InterOil announced on May 15, 2009 the agreement with Petropars to sell 10% in the Cabinda North license in Angola with subject to board approval. The agreement has now been approved by the board of Petropars. The transaction will cover all of InterOil's current commitments, including social contribution in this Block. The final book value of the transaction is a net profit after tax of US $7 Million.

This deal reflects the large potential value in InterOil's West African portfolio, and shows that the company is able to realize values even in the current challenging financial environment.