InterOil has today signed the farm-out agreement with Sonangol P&P on the onshore Cabinda North Block. As previously noted on the 23 of October 2008, InterOil will have a 21% working interest (WI) in the license and Sonangol P&P is the operator with 20% WI, which is their normal participation. Other partners in the Group are Teikoku, Soco, and ACR.
The highly prospective Cabinda North license area is 2400 km² and lies north in Angola on the border to Congo (Brazzaville). Several discoveries has been made on the license, which is on trend and not far from major production in Congo, and is very close to the Loufika discovery made in late 2006 by Maurel & Prom and now operated by ENI.
The onshore Cabinda blocks are licensed under the terms of a PSC similar to those for the offshore blocks of Angola. Sonangol's share of exploration costs are carried until the time of first commercial discovery.
InterOil will pay USD 33 million combined signing fee and social projects contribution for the 21% participation in the license. The working program for the partners in the initial phase of 3 years is to acquire 1200 km of 2d seismic and drill 5 wells. The group has already started the acquisition of 1450 km 2d seismic and will finish the acquisition probably during Q2 2008. The first well is expected to be drilled in 2009.
For more information please contact:
Fredrik von Zernichow
Investor Relation Manager
Tel: +47 67518661
Mob: +47 99273843
Fax: +47 67518660
InterOil Exploration & Production ASA is a Norwegian based exploration and production company - listed on the Oslo Stock Exchange - with focus on Latin-America and West-Africa. The company is operator of several production and exploration assets in Peru and Colombia, and is an active license partner in Angola and Ghana. InterOil currently employs approximately 200 people and is headquartered in Oslo.