From the Chief Executive Officer

Priorities for value creation

Value creation for InterOil is driven by developing the world’s lowest cost, new-build LNG project and by targeting at least 17 trillion cubic feet of gas equivalent in our world-class Papua New Guinea licenses.

Independent cost analysis shows that Elk-Antelope ranks first among potential new build LNG projects, a critical competitive advantage for a project on the doorstep of the world’s biggest LNG market.

Further, InterOil’s internal assessment of its exploration portfolio over the past year indicates that we have potential for about 8 trillion cubic feet of gas equivalent in our Bobcat, Raptor and Triceratops discoveries as a gross, unrisked, contingent resource and about 9 trillion cubic feet of gas equivalent as a gross, unrisked, prospective resource at Wahoo and Antelope South, previously known as Antelope Deep.

This potential resource is additional to the giant Elk-Antelope field.

With Total now appointed as operator of the Elk-Antelope LNG project, the joint venture is on track to select a development concept by mid-year, begin detailed engineering by year end, and to take a final investment decision in 2017.

As well, InterOil is planning a busy exploration and appraisal program over 2015-16 to prove up its gas resources and to high-grade and rank a further 35 leads across our licenses.

We have an exciting story and an exciting future that is built on a fantastic asset base, a well-funded and focused strategy and a first-rate, experienced team.

We look forward to another busy year.

Dr. Michael Hession