InterOil Updates Moose Resource Estimate to 118 Million Bbls

InterOil has updated its resource estimate for the limestone secondary target based on internal and third party analysis of drilling data, oil shows, core, and log data from the Moose ST-1 well. The contingent resource best estimate is 118 million stock tank barrels of oil (mmstbo) with a range from 50 to 290 mmstbo for the limestone secondary target. The 118 mmstbo estimate compares to a 193 mmstbo pre-drill estimate with the difference primarily being lower average porosity in the core samples. There is no change to the pre-drill estimate for the Cretaceous Sandstones as this primary target has not yet been penetrated in the Moose ST-1 well.

The key parameters will be confirmed through additional drilling and may increase or decrease the volume estimates. The volume estimate is classified as a Contingent Resource Estimate as the evaluation of the accumulation is still at an early stage. This estimate is not a Reserve Estimate as additional data is still required to satisfy SPE reserve criteria. Extended flow testing and at least one to two additional wells is required to determine whether or not an oil field is commercial.

Andy Carroll, General Manager, said "We are delighted to have such a good result on our first well. The work completed to date has allowed us to progress the resource estimate from Prospective (undiscovered) to Contingent, and we are working on obtaining the additional data required to demonstrate the commercial value of this resource. Results so far suggest the resource at Moose is significant and the geological model is robust, providing several follow up prospects."

RobSearch Australia Pty Limited, a third party natural resources consultant, has reviewed InterOil's analysis and has responded with the following: "We have reviewed the well results and other technical data with the company's technical personnel and have satisfied ourselves that these estimates have been prepared in a competent and professional manner. We also consider these estimates to be reasonable and consistent." Baker Hughes Inteq recorded the drilling data and logged the core. CSIRO, an agency of the Australian Government, reported matrix porosity over 12% and confirmed that InterOil's core porosity estimates are "conservative and reasonable."