InterOil Corporation Antelope-2 Well Drilling Report No. 2 October 9, 2009

PORT MORESBY, Papua New Guinea, Oct. 9  /PRNewswire-FirstCall/ -- 

  Prospect:             Antelope

  Type:                 Appraisal well

  Location:             PPL 237, Eastern Papua Basin
                        295,377.77mE; 9,207,339.97mN - AGD 66, Zone 55


  Current Status:       Currently preparing to obtain core in the dolomite
                        from 6,057 feet (1,846 meters).  Drilled the top of
                        the carbonate reservoir from 6,011 feet (1,832
                        meters) to 6,057 feet (1,846 meters), including the
                        acquisition of a 5.4 meter core.  Gas was recovered
                        at surface while drilling overbalanced.  Encountered
                        dolomite facies at 6,044 feet (1,842 meters).
                        Following the coring, we plan to drill switch and
                        drill underbalanced through the reservoir and begin
                        DST's.

  Past activity:          -  Intersected the top of the Antelope reservoir
                             at 6,007 feet (1,831 meters measured depth)
                             which was 345 feet (105 meters) higher than the
                             pre-drill estimates.
                          -  Successfully ran a 9 5/8 inch liner to the top
                             of the reservoir and cemented.
                          -  Conducted a CBL (cement bond log) and a VSP
                             (velocity seismic profile).
                          -  Ran a 9 5/8 inch tieback string incorporating
                             dual DDV's (downhole deployment valves).
                          -  Rigged up BOP and rotating head for pressure
                             control.

  Planned Total Depth:  Approximately 8,366 feet (2,550 meters)

  Operator:             InterOil subsidiary, SPI (220) Limited

  Prospect Description: This well is targeting the Antelope reef dolomite
                        and limestone


  FOR INVESTOR RELATIONS ENQUIRIES:

  Wayne Andrews                     Anesti Dermedgoglou
  V.P. Capital Markets              V.P. Investor Relations (Australasia)
          
  The Woodlands, TX USA             Cairns Qld, Australia
  Phone: [phone]               Phone:  [phone]

  Cautionary 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 or anticipates will or may occur in the future are forward-looking statements, including in particular statements concerning proposed drilling of the Antelope-2 well in the Elk/Antelope field and the characteristics of the Antelope reef structure. These statements are based on certain assumptions made by the Company based on its experience and perception of current conditions, expected future developments 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 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, 2008 on Form 40-F and its Annual Information Form for the year ended December 31, 2008.  In particular, there is no guarantee that the Antelope-2 well will be successful, no established market for natural gas in Papua New Guinea and no guarantee that gas 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 http://www.interoil.com/ or from the SEC at http://www.sec.gov/ and its and its Annual Information Form available on SEDAR at http://www.sedar.com/.

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. 

DATASOURCE: InterOil Corporation



CONTACT:  Wayne Andrews, V.P. Capital Markets, The Woodlands, TX USA,

[phone], , or Anesti Dermedgoglou, V.P.

Investor Relations (Australasia), Cairns Qld, Australia, [phone],

, both of InterOil Corporation



Web Site:  http://www.interoil.com/ 

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