InterOil Spuds Altair-1 Onshore Colombia

InterOil E&P announced that the Altair-1 exploration well in the Altair license located in the prolific Llanos basin in Colombia was spudded on April 2. The well will be drilled to a total depth of 2,400 meter. Altair-1 will target multiple Tertiary sandstone reservoirs with TD in the Cretaceous. The initial result from the well is expected during the second half of May 2010. We are presently preparing a second drilling location in order to drill and complete a second well in Altair before the end of May. Expected spud date for this well is April 14. The wells will be drilled by the Colombian drilling contractor Erazo Valencia SA, which will receive a 10% working interest in the Altair license against the drilling and completion of the two exploration wells. Depending on the result of the two exploration wells, Erazo Valencia SA is committed to drill two more wells in Altair in 2011.

"We are looking forward to the result of these two explorations wells, as the targeted reservoir in this area is well known for their good performance due to good quality sandstone reservoirs and a strong water-drive," said Tom Wolden, Managing Director of InterOil E&P ASA.