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The 12th PNG Mining and Petroleum Investment Conference - December 5, 2012
PNG Petroleum Exploration Seminar David Holland - Exploration Manager

Cautionary & Forward-Looking Statements

This presentation includes forward-looking statements as defined in United States federal and Canadian securities laws. All statements, other than statements of historical facts, included in this presentation that address activities, events or developments that the InterOil expects, believes or anticipates will or may occur in the future are forward-looking statements, including in particular designing a seismic and six well delineation plan in the Triceratops structure, further testing of the Triceratops-2 well, development activities including plans to deploy InterOil's rigs, drilling wells in PRL 15, drilling plans in PPLs 236 and 238, the development of the proposed LNG processing facility, the ability to attract a strategic LNG partner, timing and success of the LNG partnering process, satisfaction of the State of InterOil's development plans and satisfaction of the terms of the 2009 LNG Project Agreement with the State, benefits to stakeholders, the relationship with Pacific Rubiales, characteristics of our resources, InterOil's prospect inventory being able to support a multi-year, multi-well exploration program, completion of the farm-in transaction with PRE, satisfaction and timing of conditions to completion of the farm-in transaction with PRE, timing of FEED on the liquefaction facilities, the economic conditions and demand for InterOil's products in the LNG, growth opportunities, closing and timing such closing regarding a refinery asset backed financing transaction, near term corporate goals and the satisfaction of such goals, anticipated financial conditions and performance, business prospects, strategies, regulatory developments, the ability to obtain financing on acceptable terms, the ability to identify drilling locations and the ability to develop reserves and production through development and exploration activities. These statements are based on certain assumptions made by the Company based on its experience and perception of current conditions, expected future developments, agreements with third parties, bids received in respect of the LNG partnering process and other factors it believes are appropriate in the circumstances. No assurances can be given however, that these events will occur. Actual results will differ, and the difference may be material and adverse to the Company and its shareholders. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause our actual results to differ materially from those implied or expressed by the forward-looking statements. Some of these factors include the risk factors discussed in the Companys filings with the Securities and Exchange Commission and on SEDAR, including but not limited to those in the Companys Annual Report for the year ended December 31, 2011 on Form 40-F and its Annual Information Form for the year ended December 31, 2011. In particular, there is no established market for natural gas or gas condensate in Papua New Guinea and no guarantee that gas or gas condensate from the Elk, Antelope and Triceratops fields will ultimately be able to be extracted and sold commercially. Investors are urged to consider closely the disclosure in the Companys Form 40-F, available from us at www.interoil.com or from the SEC at www.sec.gov and its Annual Information Form available on SEDAR at www.sedar.com. Oil and Gas Disclosure Resources in this presentation are based on the report prepared by GJL Petroleum Consultants (GLJ) dated March 7, 2011 with an effective date of December 31, 2011 setting forth certain information regarding contingent resources of InterOils interests in the Elk and Antelope fields in PNG. An evaluation of the resources of gas and condensate for the Elk and Antelope fields has been completed by GLJ Petroleum Consultants Ltd., an independent qualified reserves evaluator, as of December 31, 2011, and was prepared in accordance with the definitions and guidelines in the COGE Handbook and National Instrument 51-101 - . All resources estimated for the Elk and Antelope fields are classified as contingent resources economic status undetermined. Contingent resources are those quantities of natural gas and condensate estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. The economic status of the resources is undetermined and there is no certainty that it will be commercially viable to produce any portion of the resources. The following contingencies must be met before the resources can be classified as reserves: (i) Sanctioning of the facilities required to process and transport marketable natural gas to market; (ii) Confirmation of a market for the marketable natural gas and condensate; and (iii) Determination of economic viability. Although a final project has not yet been sanctioned, pre-FEED studies are ongoing for the LNG Project and FEED studies conducted for the CS Project as options for potential monetization of the gas and condensate. The low estimate is considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. With the probabilistic methods used, there should be at least a 90 percent probability (P90) that the quantities actually recovered will equal or exceed the low estimate. The best estimate is considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. With the probabilistic methods used, there should be at least a 50 percent probability (P50) that the quantities actually recovered will equal or exceed the best estimate. The high estimate is considered to be an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. With the probabilistic methods used, there should be at least a 10 percent probability (P10) that the quantities actually recovered will equal or exceed the high estimate. The accuracy of resource estimates are in part a function of the quality and quantity of the available data and of engineering and geological interpretation and judgment. Other factors in the classification as a resource include a requirement for more delineation wells, detailed design estimates and near term development plans. The size of the resource estimate could be positively impacted, potentially in a material amount, if additional delineation wells determined that the aerial extent, reservoir quality and/or the thickness of the reservoir is larger than what is currently estimated based on the interpretation of the seismic and well data. The size of the resource estimate could be negatively impacted, potentially in a material amount, if additional delineation wells determined that the aerial extent, reservoir quality and/or the thickness of the reservoir are less than what is currently estimated based on the interpretation of the seismic and well data.

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InterOil Exploration Update

InterOil operates four Licenses in the Eastern Papuan Basin of PNG. PRL15 (Pale blue) PPL236 PPL237 and PPL238 The licenses have a total area of over 16,000 km2 or nearly 4 million acres

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Recent Drilling Operations Triceratops-2

Well Name: Well Location: X Y Z G.L. Kb to GL Triceratops-2 254,365.39 9,228,201.03 415.21 (KB) 408.16 7.05

Triceratops-2 suspended as a gas condensate discovery and potential future producer. InterOil's third successive discovery in succession after Elk and Antelope.

Permit: PPL 237 Total Depth Measured: 2,236.1m MD Total Depth TVD: 2,230.8m TVD Total Vert. Depth AMSL: 1,822.6m TVDSS Spud Date: 15/01/2012 Release Date: 13/08/2012 Drilling: 82 Days Logging: 8 Days Testing: Open Hole 44 Days- DST 1-9 Cased Hole 61 Days - DST 10 Wireline Logs: Open Hole 12 ZOVSP-GR Gyro-GR Open Hole 8 PEX-HSTS-HRLA-GR FMI-GPIT-DSI-PPC-GR ZOVSP-GR MSCT-GR 6 Runs 157 Cores Recovered APS-PEX PEX-AIT Cased Hole 7 CBL-GR USIT-GR Conventional Core : Nil Drill Stem Tests: 10

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Exploration Infrastructure
Supporting Elk, Antelope and Triceratops Operations

Antelope-3 well site

Triceratops2
Triceratops Field

Hou Creek Elk -3 Antelope-3 Camp

Elk and Antelope Fields

Antelope-3

Hou Creek Provides Northern Logistic Hub to Support Elk, Antelope and Triceratops Fields Operations

Logistics Hub Access Roads

Purari

Herd Base

Purari

River

Antelope-3 Support facilities - Camp and Field Roadways to aid logistics

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Current Drilling Operations

PRL15

Elk #3 InterOil Rig#3 - Currently Rigging Up

Antelope #3 Currently Drilling

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Antelope-3 Well Status

Top Reservoir high to prognosis

Antelope-3 well penetrated the top of the reservoir 217 feet above the pre-drill estimate The Antelope-3 well spudded on September 30, 2012. The well penetrated the top of the reservoir at 5,328 feet (1,624 meters) measured depth, 217 feet (66 meters) above the predrill estimate, and 92 feet (28 meters) higher than in Antelope-1 well. The well kicked and was shut in at the surface. Subsequently, the gas kick was circulated out while flaring. Subsequently the 9 5/8 inch liner was installed, vertical well bore seismic (VSP) acquired, and the 9 5/8 inch casing tied back to surface and dual downhole deployment valves. The cement plug was drilled and after a Formaton Integrity Test (FIT) commenced drilling the Antelope Reservoir Interval.
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Elk-3 Well Status

Infrastructure and Rig Up Operations

Rig-3 mobilized at Hou Creek logistics Hub

InterOil Rig#3 rig up at Elk-3 well site After obtaining an extension to the well InterOil and its partners plan are working to spud Elk-3 well.

Rig-3 being being transported to Elk-3 site

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Future Drilling Operations

PPL236 and PPL238

Proposed Tuna-1

Proposed Wahoo-1 Lese Airstrip Herisu Base Camp

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PPL236 Proposed Well

Wahoo/Mako Prospect
Composite Section - Strikeline
Proposed Tuna-1
Proposed Wahoo-1 Orubadi Equivalent Seal Most Likely Top Carbonate

Herisu Base Camp Lese Airstrip

Proposed Wahoo-11500 m Closure (29 km2)

Kapuri-1
1650 m Closure (42 km2)

Wahoo-1

Composite Section Onshore - Offshore

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PPL238 Proposed Well

Tuna-1
Composite Section
Most Likely Top Carbonate Orubadi Equivalent Seal Proposed Tuna-1

Proposed Tuna-1

TU02IOL10

TU04IOL12 Strike Line Section

TU03IOL10

Line: TU03IOL11

Lese Airstrip
Line: TU01IOL10

Herisu Base Camp

Line: TU02IOL11

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Antelope and Triceratops invalidates old palaeogeographic models

The discovery of the Antelope shallow marine carbonate platform and reef complex onshore in the Eastern Papuan Basin does not fit existing basin models that were developed based on the historical work from the 1950s to the 1990s. The fundamental question as to the prospectivity of the Eastern Papuan Basin: are these singularities, or do they signify more significant shallow marine carbonate development in this region.

Micritic Limestone

Lithic Sst/Mdst

Marine Mudstone

Conglomerate Sst/Mdst

Triceratops
Bioclastic Limestone

The Triceratops and Antelope areas were believed to lie in basinal deeper water setting on the margins of a major facies transition from carbonate to siliciclastic. Based on this palaeogeography the shallow marine carbonate depositional systems identified at Antelope and Triceratops should not be present.

Antelope

After Carman (1993)

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InterOil Exploration History

2012 marks 13 years of InterOils exploration in Papua New Guinea. InterOil began exploration in Papua New Guinea with an initial license award in April of 1999. InterOil took a somewhat contrarian view and saw evidence with previous oil and gas discoveries and abundant gas and oil seeps indicating an active Petroleum System of an under explored Greenfields province. In the late 1990s most of the Eastern Papuan Basin lay fallow and unlicensed. Despite early success in carbonates in the late 1950s and 1960s exploration in the eastern basin had stagnated. Best shown with only 2 non-InterOil onshore wells drilled in the area since 1970 (Puri South 1, 1988 and Ipigo 1, 1970). By comparison in that 40 year period nearly 160 wells were drilled elsewhere in the Papuan Basin. InterOil was awarded a large exploration area of nearly 8 million acres of frontier basin with such a large frontier license a systematic approach was required to focus our efforts. In 2009 InterOil extended its licenses and relinquished 50% reducing the total area to a little approximately 16,000 km2 (~3.9 million acres).

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Systematic Exploration Focus

With such a large frontier license a systematic approach was required to focus our efforts and leverage cost effective data acquisition techniques The aim: to gain maximum coverage leading to maximum knowledge at minimum cost

(37,300 kms)

This systematic approach manifested in our exploration template which has provides a multidisciplinary knowledge base and framework we continue to expand
(1,038 kms)

Airborne Gravity and Magnetics has proved to be an extremely valuable and effective low cost regional tool

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Airborne Gravity and Magnetics Coverage

2011 Infill Program

Data Gaps

Data Gaps

Data Gaps

Data gaps filled with a new airborne program in early 2011

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Current Potential Field Coverage

InterOil has acquired 37,300 line kilometres of airborne gravity and magnetics data covering an area of 22,660 square kilometres. The data was acquired in four separate surveys undertaken in 2003, 2005, 2007 and 2011.

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A New Petroleum System

Spatial and Temporal Distribution of Family B System

The new carbonate discoveries represent more than a new reservoir fairway. Detailed geochemistry of condensate from flows, shows and seeps has defined a separate source rock called Family B. The biomarker data and distribution of the family system tie it to the coral syn-rift and post-rift megasequences.

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Family B Source Rock System

CSIRO have completed extensive geochemical studies on seeps, show and flow samples from InterOils wells in the Eastern Papuan Basin. The 17 oil samples largely from different locations within the Eastern Papuan Basin of Papua New Guinea can be differentiated into two genetic groups, Family A and Family B. The Family B oils are characterized by the presence of oleanane lupane, and relatively high abundances of homohopanes, organic sulfur compounds, 2a-methyl hopanes and C29 ab hopanes. These oils are interpreted to be generated from Cretaceous or younger, marine calcareous source rock(s) containing predominantly prokaryotic OM with some terrigenous OM inputs deposited in anoxic to sub-oxic environments. The hydrocarbon fluids from the economically significant Elk-Antelope field fall within this group, as do FI oils from the Western Papuan Basin.

Ahmed, M., et al. Origin of oils in the Eastern Papuan Basin, Papua New Guinea. Org. Geochem. (2012)
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Basin Architecture
Papuan Basin and N.E. Australian Carbonate Systems

Papuan Basin carbonate system is the northern extension of the vast carbonate system that developed along Australias NE margin from the Eocene to the Late Miocene

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Offshore Gulf of Papua Basin Fabric

Extensional System

Pandora Trough

Turama Trough

Pasca Trough

Flinders Trough

Uramu High Platform Carbonate and reef

Dibiri Ridge ? Inverted Half Graben Timing ? Late Middle Miocene ?

Pasca High Pinnacle Reef

Pandora/Portlock High Platform Carbonate and reef

Extensional highs hosting detached shallow carbonate depositional system platforms and reef complexes separated by depositional troughs

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Gulf of Papua
Composite Bathymetry and Topography

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New Potential Field Data

Southern PPL238 and Northern PPL236
Tuna Gravity Anomaly

New potential reefal anomalies on the periphery of the gravity high

Bouguer Gravity Map

Residual Gravity Map (30 km High Pass Filter)

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Summary
2012 has seen the resumption of InterOil Drilling Operations. Triceratops-2 was drilled and suspended as a gas condensate discovery. Antelope-3 spudded Sept. 30 - currently drilling ahead in the Antelope reservoir.

Elk-3 received an extension from the Department and mobilisation, rig up and certification are underway. Preparation for the Wahoo-1 and Tuna-1 well have commenced. Potential Field results provide incentive for further exploration in PPL236, 237 and 238. Infrastructure is in place ready to support Elk and Antelope and Triceratops Appraisal operations (particularly given finalization of the Pacific Rubialis farm-in announced earlier in the conference).

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An Energy Development Company With Significant Exploration Potential

Thank You