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OEFA fine successfully appealed

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With reference to the press release issued by Interoil on 7 June 2013, which stated that the Agency of Environmental Supervision and Control in Peru (OEFA) had imposed a fine of USD 1,8 million on Interoil Peru SA due to the drilling of four wells outside the locations approved by the Agency.

As previously communicated, Interoil Peru SA appealed the fine imposed by OEFA.

On 26 March 2014, Interoil Peru SA was notified by the OEFA Tribunal that the fine has been reversed, as it recognized that Interoil, by moving the well locations, actually reduced the environmental impact.

As the fine was appealed, it was not actually paid by Interoil Peru SA. Hence, the resolution will have no cash impact. However, the provision made in Q2 2013 of USD 1,8 million will be reversed in Q1 2014.

Interoil Peru SA has not yet been notified of any ruling by the arbitral tribunal on the arbitration proceeding against Perupetro regarding the force majeure case, but expects the final ruling to be made by 31 March 2014.

As previously stated, Interoil's legal advisors are of the opinion that Interoil has a strong case. However, as a contingency in the event that Interoil receives a negative ruling from the arbitral tribunal, Interoil is currently in negotiations regarding a 12 month license contract.

For more information please contact:

Thomas J. Fjell
CEO
Mob: +47 958 15 300
E-mail: tfjell@interoil.no

Erik Sandøy
CFO
Mob: +47 488 94 426
E-mail: esandoy@interoil.no
www.interoil.no

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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. The company is operator of several production and exploration assets in Peru, and Colombia. Interoil currently employs approximately 275 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.

Interoil Main Office:
c/o Advokatfirmaet Schjødt AS
Tordenskiolds gate 12
NO-0160 Oslo, Norway


E-mail: ir@interoil.no

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