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Improved financial results in Q1 2008

(Oslo, May 15th) InterOil Exploration & Production ASA's consolidated revenues amounted a all time high of USD 26.8 million in Q1 2008 with an EBITDA of USD 9.8 million. The production increased by 32% and the consolidated revenue has increased by 125% since Q1 2007.
 
- The first quarter of 2008 has been a period of planning and preparing of the upcoming drilling campaign in Colombia, Peru and the exploration wells to be drilled in Angola and Ghana late 2008. There has not been drilled any wells during Q1 and the production is unchanged since last quarter. We have now finally agreed with the local farmers in Peru to drill exploration wells in the south of Block III and we will spud the first of these exciting wells during May this year. InterOil has also secured two rigs in Colombia and will start the drilling of 8 shallow and 3 deeper wells back to back in June this year, says Nils N. Trulsvik, CEO of InterOil Exploration & Production
 
InterOil's first quarter 2008 consolidated revenues were a new record of USD 26.8 million, compared to USD 11.9 million for the first quarter 2007, representing an increase of 125 %. The EBITDA was USD 9.8 million in the first quarter 2008, compared to USD 2.0 million for the same period in 2007.
 
During Q2 2008, InterOil will drill 4 wells in Peru, 2 exploration wells in the southern part of Block III and two shallow wells in Block IV. The exploration wells in Block III are in the "agricultural" area, very close to the discoveries by Olympic, and have significant potential.
 
In Colombia we have had success, using EOR methods, in producing oil from a shallower reservoir of Toqui Toqui and Mana field. This reservoir has previously not been produced and opens for a large number of new shallow production wells. The target is to drill 8 shallow wells starting June 2008. InterOil initiated in May an extensive fracturing campaign, for the deeper reservoir, in the Mana and Toqui Toqui area. Based on a study, carried out the last few months, InterOil has high hopes that both these operations will have a very positive result on the production rates.
 
- InterOil is also very encouraged by the new opportunity received in the latest license round in Colombia. The Altair exploration license lies in the Llanos basin, which holds Colombia's largest number of oil fields and the block is surrounded by established oil production and infrastructure. InterOil will be the operator with 100% working interest and we have estimated prospective resources in the range of 27 - 33 million barrels, recoverable. InterOil is committed to shoot 150 km of seismic and drill 1 exploration well within the next 18 months, says Nils N. Trulsvik.
 
For more information please see Q1 2008 report and presentation enclosed, or contact:
 
Nils N. Trulsvik
CEO
Tel: NO +47 67518650 
Mob: NO +47 41608667 
 
Fredrik von Zernichow
Investor Relation Manager
Tel:  NO +47 67518661
Mob: NO +47 99273843
Fax: +47 67518660
 
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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.
 
Files
InterOil Q1 2008 presentation
InterOil Q1 Report 08

Interoil Main Office:
c/o Advokatfirmaet Schjødt AS
Ruseløkkveien 14
NO-0251 Oslo, Norway

Phone: (+47) 67 51 86 50
Fax: (+47) 67 51 86 60
info@interoil.no

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