InterOil has completed well 13169D on the San Luis discovery in Peru with an
initial production of 500 bopd. The last well of the 2010 San Luis drilling
campaign, 13162D, encountered oil and will be tested within the next couple of
days. In Colombia InterOil has decided to drill Altair-2 in February 2011.

InterOil has completed the testing of the fifth well, 13169D, on the San Luis
discovery. The well encountered oil in 4 different zones and was last week dual
completed and put in production. The well produces today approximately 500 bopd
from two zones trough a 3/8 and 1/4 choke, which is higher than expected. The
well provides us with very important information about the different reservoirs
and their lateral distribution.

InterOil has also reached total depth and logged the sixth and final well
(13162D) in the 2010 drilling campaign. The well was drilled as an appraisal,
located to the West and in a structural low position. The main target was oil
filled. The reservoir characteristics look very good with high porosity and
permeability. A new gas bearing sand was encountered at the top suggesting a
potential oil-leg even further down flank. The well also provided us with very
useful information for the water injection project. Logging and pressure testing
is completed, and the well is now ready for testing.

InterOil has initiated a study for a water injection project on the San Luis
discovery. All information gathered during the drilling campaign, and 3 D
seismic data, support the idea that San Luis is a good candidate for water
injection. Subject to the conclusion of the study, and with permits in place,
water injection will be initiated. Water injection will increase both the
production and the recovery factor of the field.

The San Luis discovery has proven the presence of a structure consisting of
several oil bearing intervals, some of which consists of good quality
reservoirs. The discovery will be the most important contributor to the
increased production from Peru going forward. InterOil will monitor the San Luis
closely and spend the next 2-3 months to update reservoir models and prepare for
the next drilling campaign and water injection in 2011.

The Totare license in Colombia expired December 31, 2010 and InterOil has
returned the license back to Ecopetrol. InterOil has concluded a service
agreement with Ecopetrol to continue operate the field on behalf of Ecopetrol.
The Totare license produces today 100 bopd. InterOils WI in the Totare Field was
50%.

InterOil decided to temporarily shut in the Altair-1 well 1(st) January 2011.
The combination of lower production than expected due to road transportation
restriction and high watercut from the well made the operation from the well non
economic. InterOil has now taken several steps in order to reduce the
operational cost and have together with our partner decided to drill Altair-2
during February. Altair-2 will be drilled as a production well on the Altair
structure. Altair-1 will be opened up again during first week of February. As a
result of the shut in, InterOil will lose approximately 150 bopd from its
operation in Colombia during January.
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
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, Colombia 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)

[HUG#1480070]

Operational update Peru and Colombia