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Interoil Exploration & Production ASA : Summons for bondholder meeting

The recent judgment in a tax dispute involving Eksportconsult AS and Force Capital Partners AS has entitled Interoil Exploration & Production ASA (IOX) to receive an amount of approximately NOK 45 million from Eksportconsult AS and Force Capital Partners AS (Tax Refund).

Under the 15.00 per cent IOX Senior Callable Bond Issue 2010/2014 (Loan Agreement) the Tax Refund was assigned to the Bond Trustee as Security for the Bond and is to be used to redeem bonds at a call premium of 110% of par.

With respect to, this and in light of the successful 50% farm-out of three Colombian blocks, the Company is seeking to improve its working capital in the short term by retaining the Tax Refund.  Investing in these blocks will increase the value of the Company's assets in Colombia to the benefit of the bond and shareholders.

IOX has therefore called for a bondholder meeting to be held 27 April 2012. The company has agreed with a group of its largest bondholders to postpone the repayment of the Tax Refund with one year until the interest payment date in March 2013. Furthermore the company has agreed to a tighter covenant structure, including no dividends for the duration of the bond, as well as adjustment of an existing restriction on oil price hedging, which will now allow for new hedging. Bondholders are offered NOK 4.5 million in consent fee and the Tax Refund shall be repaid at 5% premium to par when it is due in March 2013. Please see the attached summons for full details on the proposal.

Pareto Securities and RS Platou Markets have been retained as financial advisors in connection with the bondholder meeting.

For more information please contact:

Erik Sandøy
Tel: +47 6751 8654
Mob: +47 4889 4426
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. The company is operator of several production and exploration assets in Peru, Colombia and Ghana. InterOil currently employs approximately 250 people and is headquartered in Oslo.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Summons to Bondholder Meeting

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

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