The average production in January 2008, compared to the average production in December 2007, was:
Production* January 2008 December 2007
Peru 3 230 2 877
Colombia 1 800 1 775
Total 5 030 4 652
*The production is average daily production (bopd) and is working interest before royalty
As previously noted InterOil has started an Enhanced Oil Recovery (EOR) campaign, which includes chemical treatment and fracturing. The campaign started in December and will continue throughout the first half of 2008. Several wells in both Peru and Colombia have been down during January due to EOR. InterOil has done a fracturing study in both Peru and Colombia and as a result of this, several wells in both Peru and Colombia have been selected for special fracturing. The fracturing of these wells will take place during March and InterOil is very confident that the result will contribute to a very positive production increase from April 2008.
Oil has been sold at average sales price of USD 88.92 in Peru and USD 80.93 in Colombia per barrel during January, to be compared with the average price during January -September 2007 of USD 64.63 in Peru and USD 60.30 in Colombia.
InterOil will in addition to EOR also continue to drill new wells and has planned to drill 4 wells in Peru and 1 well in Colombia during February and March 2008.
For more information please contact:
Fredrik von Zernichow
Investor Relation Manager
Tel: +47 67518661
Mob: +47 99273843
Fax: +47 6751 8660
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.