InterOil Signs Drilling Pact in Colombia

InterOil (IOX) informed that 10% of its Altair license in the Llanos Basin, Colombia has been traded against the drilling of two firm wells in 2010 and two conditional wells in 2011, depending upon the 2010 drilling results.

The drilling cost in this new area is budgeted by IOX at US $4.5 mill for each well.

The company's new partner in Altair is a major Colombian drilling company. The agreement opens up for additional future cooperation in licenses belonging to the drilling contractor.

"Based on the latest developments, recent visit to Peru and Colombia, and the excellent work performed by our teams, I am confident that we will conclude the refinancing within the timeframe that we have given ourselves," said InterOil Chairman Mårten Rød.