Update of the result from the ongoing exploration drilling activity in the Altair Block, Central Llanos Basin, Colombia

Two wells have been drilled (Altair-1 and Purrita-1).  In order to conclude a
better understanding of the Altair Block, production testing of Altair-1,
detailed seismic interpretation and drilling of minimum one additional well will
be performed during 2010.

In April InterOil Colombia drilled the first exploration well (Altair-1) in the
Altair Block. The well encountered oil in several intervals. A 14 days
production test of the prospective Carbonera C7 reservoir was performed and the
initial results were 1392 BOPD with an oil gravity of 24.3° API and a 4% water
cut. The well was suspended awaiting the approval from Ministry of Mines for the
Long Term Test (LTT). The LTT is expected to start during the next 2-3 days. The
test will be performed in two phases:

Phase No.1 cover a period of four months, whereby the upper and lower reservoir
intervals will be tested.

By using a jet pump at three different injection pressures, 500, 700, 900 psi,
flow rates of 1200, 1400 and 1500 BFPD (Barrels of Fluid per Day) with a water
cut of approximately 40 % can be expected.

Phase No.2, will take place immediately after the phase 1 for a period of two
months. During this test only the upper interval will be tested in order to
analyze the water cut behavior in the previous test. The test will be performed
at 700 and 900 psi injection pressure. Expected flowrates are 1100 BFPD, with a
20% water cut. In both phases, build up pressure test will be performed to
acquire reservoir data.

The relative thin oil column (21 ft), together with very good reservoir
parameters (permeability of up to 20 Darcy) makes the prediction of the water
cut from the test uncertain. The result from the LTT will give us a better
understanding of the reserves we can expect from the Altair-1 structure.

The second exploration well in the Altair Block, Purrita-1, drilled during May,
was targeting a stratigraphic trap at the Gacheta level. The well reached the
final depth at 7020 ft in economic basement. Poor oilshows was recorded at the
target level. Electrical Logs were run, confirming the precense of a 40 ft net
sand associated with the stratigraphic trap, but the petrophysical analysis
showed a water wet sand. The well is being considered as a water injector for
the Altair-1 well.

Based on the result from Altair-1 and Purrita-1, InterOil will use the next 6
months to re-evaluate the remaining potential of the Block and subject to
result, drill another exploration well by the end of 2010.



For more information please contact:

Fredrik von Zernichow

Investor Relation Manager

Tel: +47 6751 8661

Mob: +47 9927 3843

Fax: +47 6751 8660

E-mail: f.zernichow@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, and is an active license partner in Angola and
Ghana. InterOil currently employs approximately 250 people and is headquartered
in Oslo.


This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)


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