InterOil Corporation filed the Elk-2 well technical review and final drilling report of its Elk-2 appraisal well in Papua New Guinea.

"The drilling and subsequent testing of the Elk-2 appraisal well has confirmed conductive fractures, porosity and deliverability and a larger rock volume and better than anticipated reservoir quality, which indicate increased potential gas resource in the Elk structure. The results from the Elk-2 well continue to support a significant hydrocarbon column and potential gas resource required to underpin a proposed LNG project in Papua New Guinea by our joint-venture," said Mr. Phil Mulacek, Chief Executive Officer of InterOil.

Results from drilling and subsequent logging, coring and testing of the Elk-2 appraisal well, indicate the following: - Primary targeted Puri Limestone stratigraphic thickness is 1,749 feet (533 meters) and the Mendi Limestone is 958 feet (292 meters) both thicker than pre-drill estimates.

• Logged net reservoir is 663 feet (202 meters) measured thickness with average log porosity of 4.5%.

• Mendi Limestone average porosity of 6.3%.

• The fracture conductivity measured with the FMI log was supported by the DST's which resulted in flow capacities (kh) as high as 472,000 millidarcy-feet and water flow rates of up to 2,565 barrels per day in lower part of the well.

• Comprehensive understanding of the reservoir from technical data obtained from the full suite of logs including FMI, VSP and extensive sidewall coring.

• Most pre-drill expectations have been achieved and future drilling on the Elk structure will be undertaken to confirm oil/gas reserves.