Interoil Enters Short Term $25 Million Secured Credit Facility

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12th August 2010, 12:51am - Views: 972

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InterOil Enters Short Term $25 Million Secured Credit Facility

CAIRNS, Australia and HOUSTON, Aug. 11 /PRNewswire-AsiaNet/ --

    InterOil Corporation (NYSE: IOC) (POMSoX: IOC) today announced that it has 

closed on a $25 million secured term loan bearing a 10% interest rate with Clarion Finanz

AG.  The term loan facility matures on January 31, 2011 and will be used for upstream

development and general corporate purposes.  InterOil has agreed to pledge to Clarion

Finanz a 2.5% interest in the Elk and Antelope fields as collateral for the facility.

    Collin Visaggio, Chief Financial Officer of InterOil, commented, "We are pleased to

have obtained this facility from Clarion Finanz.  It allows us to maintain financial

flexibility while seeking potential industry investors in the Elk and Antelope fields. 

InterOil intends to use the proceeds from the facility to further develop the Elk and

Antelope fields in advance of the proposed development of the longer term condensate

stripping and liquefied natural gas projects."

    About InterOil

    InterOil Corporation is developing a vertically integrated energy business whose

primary focus is Papua New Guinea and the surrounding region.  InterOil's assets consist

of petroleum licenses covering about 3.9 million acres, an oil refinery, and retail and

commercial distribution facilities, all located in Papua New Guinea.  In addition,

InterOil is a shareholder in a joint venture established to construct an LNG plant on a

site adjacent to InterOil's refinery in Port Moresby, Papua New Guinea. InterOil's common

shares trade on the NYSE in US dollars.

    Investor Contact for InterOil:

    Wayne Andrews, V. P. Capital Markets

    The Woodlands, TX USA

    Phone: +1-281-292-1800

    Forward-Looking Statements

    This press release may include "forward-looking statements" as defined in United

States federal and Canadian securities laws.  All statements, other than statements of

historical facts, included in this press release that address activities, events or

developments that InterOil expects, believes, plans, projects or anticipates will or may

occur in the future are forward-looking statements. In particular, this press release

includes forward-looking statements concerning the use of the proceeds from the facility,

the collateral to secure the facility, the potential sale of interests in the Elk and

Antelope fields, the development and completion of a condensate stripping facility and

liquefied natural gas plant. These statements are based on certain assumptions made by

the Company based on the terms of agreements in place in addition to its experience and

perception of current conditions, expected future developments and other factors it

believes are events will occur, including, in particular the sale of any interest in the

Elk and Antelope fields, the development of the proposed condensate stripping facility or

liquefied natural gas plant.  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 described in the company's filings with the

Securities and Exchange Commission and SEDAR, including but not limited to those in the

Company's Annual Report for the year ended December 31, 2009 on Form 40-F and its Annual

Information Form for the year ended December 31, 2009.  In particular, there is no

established market for natural gas in Papua New Guinea, and no guarantee that gas, gas

condensate or oil from the Elk/Antelope field will ultimately be able to be extracted and

sold commercially.

    Investors are urged to consider closely the disclosure in the Company's Form 40-F,

available from us at or from the SEC at and its Annual

Information Form available on SEDAR at, including in particular the risk

factors discussed in the Company's filings.

    We currently have no reserves as defined in Canadian National Instrument 51-101

Standards of Disclosure for Oil and Gas Activities.  All information contained herein

regarding resources are references to undiscovered resources under Canadian National

Instrument 51-101, whether stated or not.

SOURCE  InterOil Corporation

    CONTACT:  Wayne Andrews, 

              V. P. Capital Markets of InterOil Corporation, 



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