InterOil Corporation has executed a Farm-In Agreement and related documents with Pacific Rubiales Energy Corp. relating to its acquisition of a 10.0 percent net (12.9 percent gross) participating interest in Petroleum Prospecting License 237 ("PPL 237") onshore Papua New Guinea, including the Triceratops structure and exploration acreage located within that license.

Execution of the Farm-In Agreement accomplishes one of the milestones contemplated to complete the farm-in transaction. Completion of the farm-in transaction remains subject to satisfaction of additional conditions within 18 months, including execution of joint venture operating agreements with PRE, and PNG Government approval. Additionally, PRE has the option to terminate the Farm-In Agreement at various stages of the work program and to be reimbursed up to US$96 million of the $116 million initial cash payment, which does not include carried costs, out of future upstream production proceeds.

Tags: InterOil Corporation, Pacific Rubiales Energy Corp.