2010-03-16 11:28:02 -

CAIRNS, AUSTRALIA and HOUSTON, TEXAS -- (Marketwire) -- 03/16/10 -- InterOil Corporation (NYSE: IOC)(POMSoX: IOC) today announced that due to mechanical issues encountered while running a 5 1/2" liner, the 90 degree angle build section of the Antelope-2 well will need to be re-drilled. The mechanical failure was detected after the casing was set. Remedial work will be required and the Company now anticipates the horizontal extension at Antelope-2 to be completed in late-April.



About InterOil


InterOil Corporation is developing a vertically integrated energy business whose primary focus is Papua New Guinea and the surrounding region. InterOil's assets consist of petroleum licenses covering about 3.9 million acres, an oil refinery, and retail and commercial distribution facilities, all located in Papua New Guinea. In addition, InterOil is a shareholder in a joint venture established to construct an LNG plant on a site adjacent to InterOil's refinery in Port Moresby, Papua New Guinea.



InterOil's common shares trade on the NYSE in US dollars.



Forward-Looking Statements


This press release may include "forward-looking statements" as defined in United States federal and Canadian securities laws. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the InterOil expects, believes or anticipates will or may occur in the future are forward-looking statements, including in particular statements concerning drilling and testing of the Antelope-2 well and the drilling and testing of an associated horizontal well. These statements are based on certain assumptions made by the Company based on its experience and perception of current conditions, expected future developments and other factors it believes are appropriate in the circumstances. No assurances can be given however, that these events will occur. Actual results will differ, and the difference may be material and adverse to the Company and its shareholders. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause our actual results to differ materially from those implied or expressed by the forward-looking statements. Some of these factors include the risk factors described in the company's filings with the Securities and Exchange Commission and SEDAR, including but not limited to those in the Company's Annual Report for the year ended December 31, 2009 on Form 40-F and its Annual Information Form for the year ended December 31, 2009. In particular, there is no guarantee that further issues will not be encountered or that the Company will be able to complete the horizontal well within the time anticipated or at all.



Investors are urged to consider closely the disclosure in the Company's Form 40-F, available from us at www.interoil.com : or from the SEC at www.sec.gov : and its and its Annual Information Form available on SEDAR at www.sedar.com : , including in particular the risk factors discussed in the Company's filings.



We currently have no reserves as defined in Canadian National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. All information contained herein regarding resources are references to undiscovered resources under Canadian National Instrument 51-101, whether stated or not.

Contacts:
Investor Contacts for InterOil:
InterOil Corporation
Wayne Andrews
V. P. Capital Markets, The Woodlands, TX USA
+1-281-292-1800
Wayne.Andrews@InterOil.com :

InterOil Corporation
Anesti Dermedgoglou
V.P. Investor Relations, Cairns Qld, Australia
+61 7 4046 4600
Anesti@InterOil.com :
www.interoil.com :

Media Contact for InterOil:
Joele Frank, Wilkinson Brimmer Katcher
Andrea Priest/Ed Trissel
+1-212-355-4449