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InterOil

Exploration & Production ASA

Company Presentation - May 2006

12 May 2006

Fondsfinans

Company Background

Negotiations for the South American assets initiated september 2004

Extensive due diligence prosess and initial financing until September 2005
by the founders Nils N. Trulsvik, Gian Angelo Perrucci and Mrten Rd

Interoil Exploration and Production ASA established (Norwegian joint stock


company), aquisition of the assets by Interoil

Equity issue of USD 45 mill. together with debt financing of USD 42 mill.

Listing on the Norwegian OTC market under INOX

To be listed on OSE during 2006

12 May 2006

Fondsfinans

Key Data
Production (April 2006)
Peru
Colombia
Total

2 500 bbl.
1 057 bbl.
3 557 bbl.

Reserves (December 2005) (proven and probable)


Peru
10.4 boed
Colombia
5.6 boed
Total
16.0 boed
Financial Data
Traded (symbol: INOX)
Share price
Number of shares outstanding *)
Market capitalisation
Net interest bearing debt (end 05)

OTC (to be listed on OSE)


NOK 27
21245000
NOK 574m
(USD 90m)
NOK 276m
(USD 42m)

Production and Reserves are working interest


*) The companys Creditor is entitled to shares corresponding to USD 5m of Market capitalisation by listing of the shares
12 May 2006

Fondsfinans

Peru and Colombia exciting opportunities

Increased political and economic stability

Recent favourable oil policy reforms


- Peru and Colombia two best contract terms in Latin America *

Rapidly attracting new foreign investments in energy sector

Companies like Chevron, Total, Occidental, Petrobras, Nexen, Talisman


and Hocol are all operating in the area. ExxonMobil has returned for
exploration after 10 years, and others like BHP, Repsol, Burlington and
Lukoil have recently arrived

Latin America is under-explored with large oil and gas reserve potential
- Only 11% of Colombias total sedimentary area has been licensed : Oil & Gas Conference,
Cartagena, May 2005

*) Wood Mackenzie Latin America Upstream Insights July 2004


12 May 2006

Fondsfinans

Company objectives and strategy


Develop InterOil as a production and exploration company
active primarily in South America and West Africa
Long-term goal to participate in both onshore and offshore exploration and production
activity and achieving a balanced portfolio consisting of exploration, appraisal, developing
and producing assets

Organizational development
o Build up local technical and operational competence in order to facilitate local
demands and keep costs to a minimum
o Build up a small and effective multi-disciplinary team of key professionals and
outsource all services to the extent practical

Focus on increasing production from current portfolio in Peru and Colombia


o New wells in combination with a large work-over and rehabilitation program
o Further growth to come from purchase of discoveries ready for development and
participating in strategic exploration opportunities

12 May 2006

Fondsfinans

Organization and Management


Advisory Board
Joseph von der Weid

InterOil E&P ASA


Board of directors
Gian Angelo Perrucci, Mrten Rd, Blair Thomas

Nils N Trulsvik
Managing Director
Fredrik von Zernichow
Petroleum Econ. / IR

Jon Wiggen
CFO

Ren Graf
CTO

InterOil E&P
Africa AS

InterOil E&P
Latin America AS

Peru
Pedro Timana
General Manager
Number of staff: 80

12 May 2006

Pascal Berthou
General Manager

Colombia
Mauricio de la Mora
General Manager
Number of staff: 46

Angola

Fondsfinans

Congo

Management team and key personnel CVs


Gian Angelo Perrucci, born 1943, is an Italian entrepreneur. He previously built up a major shipping company in
USA and Europe. During the last 15 years, he has developed a major logistics operation in West Africa including
supply bases, engineering and production yards, and offshore support vessels.
Joseph von der Weid, born 1934, has long experience from executive positions for Shell in South America. Has
been E&P Manager in Shell Argentina, General Manager in Shell Peru (1981-86), President and CEO in Shell
Columbia (1986-88) and President in Shell Argentina (1988-91).
Mrten Rd, born 1948, has long experience as entrepreneur and from the oil and gas industry both upstream
and downstream. Was working 11 years for Arco in the North Sea, founded Northern Energy UK in 1998, an oil
company with production in Texas and Oklahoma, President in Interoil Norway from 1995, which participated in
various oil and mineral projects in West-Africa.
Blair Thomas, Group Managing Director for Energy & Infrastructure works at TCW. He was a Senior Officer
involved in structuring and negotiating private sector non-recourse project finance transactions related to
infrastructure and natural resource development in Global Energy and Infrastructure. He has a BA from the
University of Virginia, a JD from New York Law School and an LLM from Georgetown University Law Center.
Nils N. Trulsvik, born 1948, is a petroleum explorationist with extensive experience throughout the world. Was
working seven years with Saga Petroleum with assignments in the North Sea, Mediterranean, Africa, South and
North America. Co-founded Nopec in 1981, where he was working for 13 years with assignments in Northwest
Europe, Africa and the Far East. Managing Director from 1987 until 1993. He was part of the management team
in Fountain Oil from 1994 1998. Has been working with various oil and gas projects the last 10 years.
Ren Graf, born 1947, has long international experience covering all aspects of exploration with focus on
geophysical field operations, processing and interpretation, both 2-D and 3-D, land and marine. This experience
has been acquired during a period of almost 20 years working for Shell International in The Netherlands, France,
Malaysia and Colombia.
Jon Wiggen, is a state authorized auditor and has over 30 years experience in various businesses including
several publicly listed companies. He was CFO for Brynestad Group of companies for several years.

12 May 2006

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Financial Data 2005


Unaudited figures in USD 1000

INOX
Q4 2005

Proforma
Year 2005

Production, before royalties (bbls)

221 367

927 920

Production, after royalties (bbls)

144 249

611 311

Operating revenue

7 991

28 495

EBITDA

3 200

18 900

Loss before tax

-100

Capitalised Expenditures

3 500

12 May 2006

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8 800

Location Facts & Figures


Colombia
Population: 42.3 mill.
Area:

1 138 910 km2

Political: Republic
Capital:

Bogota

Oil prod: 512 400 bbl/d


Oil cons: 270 000 bbl/d
Oil proved res: 1 436 mill bbl.
Peru
Population: 27.9 mill.
Area:

1 285 220 km2

Political: Republic
Capital:

Lima

Oil prod: 120 000 bbl/d


Oil cons: 157 000 bbl/d
Oil proved res : 370 mill bbl.
12 May 2006

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Peruvian assets

2 blocks, 100% ownership, Operator


-

Block IV

Number of Employees
Total number of wells
Area

80
approx. 800
164,000 acres (663 km2)

Production
Production
Annual production

000 bbl

623

465

1,706

1,275

OPEX

000 USD

3,074

2,351

OPEX

USD/bbl

4.9

5.1

Reserves
RESERVE CATEGORY / BLOCK

Block III

2004

bbl/d

Average daily production

2005

PERU TOTAL

Proven and probable - Working interest (mill bbls)

10,4

Proven and probable - Net entitlement (mill bbls)

6,0

Large number of new well locations available


- 52 proven and 33 probable

Royalty (2005): 40.4 %

Corporate tax: 30 %
1)
2)

12 May 2006

Fondsfinans

Reserves as of Desember 31, 2005. Source: Gaffney Cline & Associates


Royalty is dependent on oil price: Oil price USD 35 Royalty 34.1%
Oil price USD 65 Royalty 45.7%

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Colombian assets

Includes one company and six contract areas


-

Number of employees
Wells in production
Area

46
42
62,945 acres (258 km2)

Production
Production
Annual production

2005
000 bbl

305

290

bbl/d

836

794

Average daily production

OPEX

000 USD

2,303

1,546

OPEX

USD/bbl

7.5

5.3

Reserves
RESERVE CATEGORY

2004

COLOMBIA TOTAL

Proven and probable - Working interest (mill bbls)

5,6

Proven and probable - Net entitlement (mill bbls)

4,7

Large number of new well locations available


- 23 proven and 29 probable

Royalty (2005): 18.3%

Corporate tax: 38.5 %


1)
2)

12 May 2006

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Reserves as of Desember 31, 2005. Source: Gaffney Cline & Associates


Royalty variate between 8 & 20% dependent on contract area

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Peru and Colombia Production Targets


Oil Production in 1000 bbl/d
7

Sharp increase in oil


production in the coming
years

Production target of close


to 6,000 bbl/d in 2008

Modification of planned
program dependent on
success factors

6
5

Colombia

4
3
2

Peru

1
0
2001

12 May 2006

2002

2003

2004

2 005

2006E

2007E

2008E

2009E

2010E

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Peru and Colombia Field Capex

USDm
20.0

Current Capex plan for


2006 approx. USDm 19

One drilling rig and two


workover rigs currently in
operation in Peru

One drilling rig and one


work-over rig currently in
operation in Colombia

18.0
16.0
14.0

Colombia
Colombia

12.0
10.0
8.0
6.0

Peru
Peru

4.0
2.0
0.0
2001

12 May 2006

2002

2003

2004

2005E 2006E 2007E 2008E 2009E 2010E

Fondsfinans

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Peru and Colombia Investment Programme


PERU CAPEX 2006E

COLOMBIA CAPEX 2006E

USD 11 million

USD 8.0 million

Min. 8 New Wells

7 New Wells

20 24 rehabilitations

5 rehabilitations / fracture jobs /


horizontal wells

20 24 workovers

Expected net production


increase
1,100 bbl/d

14 20 workovers

Expected net production


increase
600 bbl/d

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Peru Block III IV - 2006 Drilling Campaign


Existing Database
455 wells in Block III
358 wells in Block IV

Block IV

Area of Focus

Block III

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Peru Block III 2006 Drilling Campaign

Well location
Drilled
Well 13004
Well 13006
Well 13009
To be Drilled 2006
Well 13014
Well 13018

12 May 2006

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Peru Block IV 2006 Drilling Campaign

Well location
Drilled:
Well 12612
Well 12616
Well 12617
Well 12618
To be drilled (2006)
Well 12619
Well 12621

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Peru Block IV Development

12 May 2006

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Peru Block IV Development

12 May 2006

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Colombia 2006 Drilling Campaign

Well no. and location


(completed)
TC 13
TC 15
AMB 6
TC 16
Puli 7
Mana 3
To be drilled (2006)
TC 18
Puli 8

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5 km

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Colombia 2006 3D Survey

3D: ~ 80 km2
~ 2.7 MM USD

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How to Reach Production Targets Summary

Establish solid technical foundation

Integrate local knowledge with modern exploration and production technology

Supplement geological and geophysical data where necessary

Build solid subsurface geological structural models

Identify structural and stratigraphic potential

Drill wells to increase production and remaining reserves

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Technical Work Programme


Peru
9 Completion of seismic data loading and well data base (TD, datum elevation, velocity surveys)
9 Incorperation of production data in Geographix production database
9 Interpretation of 3D-seismic in zone C, critical review of existing fault model
9 Digitization of ~800 paper logs into Geographix well base
9 Geological log interpretation to produce facies maps
9 Check possibility of drilling horizontal wells to increase production

Colombia
9
9
9
9
9
9
9
9
9

Review and refine the sedimentological model together with staff in Bogot
Calibrate the seismic data with well logs
Refine the quick interpretation done based on 2D-lines, establish an agreed fault system
On-the-job training for local staff in seismic interpretation
Get and load all production data into Geographix production database
Consider a 3D-seismic survey
Discuss with Ecopetrol and ANH the possibility of swapping commitment wells for 3D-seismic
Consider a Spectraseis survey to directly map hydrocarbons
Check possibility of drilling horizontal wells

12 May 2006

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Angola Licensing
Interoil Awarded (May 10th, 2006)
40% Block 5
20% Block 6

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Angola Block 5
Block 5 Angola
5708 km

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Angola Block 6
Block 6 Angola
4930 km

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Shareholders structure May 2006


Number of
shares

%Ownership

CABERIAN INVESTMENT INC

5 225 000

24,59

Gian Angelo Perrucci

EKSPORTCONSULT AS

5 225 000

24,59

Mrten Rd

CREDIT SUISSE SECURITIES

1 870 600

8,80

BEAR STEARNS SECURITIES CORP.

1 618 800

7,62

FORCE CAPITAL PARTNERS AS

800 000

3,77

NORINVEST LTD

500 000

2,35

AWILCO INVEST AS

450 000

2,12

MUSLIK AS

443 450

2,09

KLP FORSIKRING AKSJER

400 000

1,88

STOREBRAND LIVSFORSIKRING AS

392 420

1,85

SKANDINAVISKA ENSKILDA BANKEN

387 800

1,83

BANK OF NEW YORK, BRUSSELS BRANCH

319 200

1,50

AWECO INVEST AS

300 000

1,41

MORGAN STANLEY AND CO.INTL.LIMITED

281 250

1,32

CONSAFE INVEST AB

275 000

1,29

BANQUE INVIK SA LUXEMBOURG

269 500

1,27

BANQUE INVIK SA LUXEMBOURG

200 000

0,94

KLP AKSJENORGE

120 000

0,56

FOLLUM INVEST AS

100 000

0,47

DEUTSCHE BANK AG LONDON

98 750

0,46

INTERTRADE SHIPPING AS

97 500

0,46

19 374 270

91,19

Total
Number of shareholders

119

Total number of shares

21 450 000

12 May 2006

Fondsfinans

Nils N Trulsvik

*) Total shares owned by


Board/Management 53%

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InterOil Investment Case


First building block
in place

Production in Peru and Colombia


Local management in both countries
Sharp increase in oil production

Large growth
potential

Portfolio provides for substantial organic growth in production


Considerable exploration potential in Colombia
Exploration targeting deeper reservoars to be evalueted

Positioned to grow
in West Africa

Strong historical presence in West Africa


Several projects under evaluation / negotiations
Angola Blocks Awarded

Experienced team

Management with extensive experience in South America and


West Africa
Local management to develop existing and new projects
Strong technical G&G team in Zrich

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