NikiskiNews

Featuring the Latest on InterOil Corporation • Exclusively for Nikiski Partners, Ltd.April 2009 • Volume II, Issue 1

Nikiski News April 20091

Proud moment does not begin to describe the feeling. 11 Wall Street, New York,

March 31, 2009: InterOil officially became list-ed on the New York Stock Exchange (NYSE).I was fortunate enough to have the privilege of ringing the NYSE opening bell sharply at 9:30.

During the celebratin that followed, in front of a national audience, Wayne Andrews produced a lengthy log for Antelope 1 and unrolled it from the podium. At the top of the log, the words “World Record” were hand-written. Proud moment does not describe the feeling. All of us then took some high fives and circulated on the floor of the exchange. CNBC interviewed me on national television. I surprised the reporter by giving her a small vial of condensate. It was all very cool. You can see the opening at www.interoil.com/movies/movie1.asp, and you can see the CNBC interview at www.interoil.com/mov-ies/movie2.asp.

About 40 folks attended the preopen-ing breakfast held at the NYSE Board Room. Dr. and Ms. Patel, Nikiski partners who live in New Jersey were at the opening ably representing Nikiski. Ambassador Paki was there representing the people of Papua New Guinea. The NYSE representative welcomed all who were able to attend, and I was very pleased to thank all present for their atten-dance. The IOC board members and key em-ployees were led to the bell ringing platform above the trading floor and the rest of the IOC supporters there were taken to the trading floor. Friends, I have to tell you ringing that bell was an awesome and incredible experi-

ence. Further, right after the opening bell IOC spiked to another high.

As I watched the excitement March 31, I couldn’t help but think about Nikiski Partners. You Nikiski partners have to be proud. You have to be happy with your investment. It is true that the “opening bell” for Nikiski was 17 long years ago. Seventeen years of patience for you. Seventeen years of devotion and hard work by all of us at InterOil.

Just think, you have received a substantial multiple return on your original investment at this point, and you still have some shares to go. You have had some ups and downs, to say the least. You didn’t expect your investment to take so long to mature. For the most part you stayed the course. You trusted me. With the help of very capable people, I devoted a substantial part of my life and career to making this dream work. You all started with an investment in a broken down refinery in Alaska looking for a home, and a dream. How could anyone expect that investment to morph over time to a vertically integrated

energy company half a world away. You surely didn’t expect your investment to take the course it has. IOC now has the majority of downstream petroleum product distribution in Papua New Guinea, a third world growing economy. You surely didn’t expect your re-finery investment to grow into the upstream E&P that is world class.

2008 had to be the most difficult year many of you have experienced in invest-ing. You may have seen your life savings dwindle. The economy and the uncertainty in the markets have caused much anxiety. Your net worth may have been reduced by substantial hunks of real losses. IOC has been under attack,too. The world economy and the price of petroleum caused IOC stock price to drop to very low levels. IOC was $8.90 in November, 2008. March 31 it closed at 28, a 315% increase. Shameless and unscrupulous stock traders have also caused uncertainty and instability. Wide swings in world petroleum prices have caused further downward pres-sure on energy related companies.

The move to the NYSE is positive. The NYSE offers credibility and stability. IOC still has many challenges ahead, but the opening bell at the NYSE March 31 symbolizes a new era. I thank all of you for staying the course.

–CEO Phil Mulacek

InterOil Listed on the NYSE(Above) InterOil CEO Phil Mulacek (center) rings the bell at the NY Stock Exchange on March 31, 2009, ushering in a new era for Nikiski Partners.

(Left) Dr. and Mrs. Patel attended the opening.

InterOil Corporation (IOC:NYSE) (IOC:POMSoX) recently announced the recovery of oil and oil emulsion

from the Antelope-1 side track. Initial laboratory readings indicate that the oil is approximately 44° API gravity.

During Drill Stem Test (DST) #8, a limited amount of oil and drilling fluid were recovered from an interval of 7,809 feet (2,380 meters) to the current total depth (TD) at 7,930 feet (2,416 meters). The side-track is in close proximity to the original Antelope-1 well bore, which was cemented from total depth at 8,892 feet (2,710 meters) to 7,727 feet (2,355 meters).

Analysis of the test pressure data, oil and oil emulsion by third parties is in progress. IOC is in the early stages of evaluation and has not yet determined any approximate volume, and in particular whether oil volumes would be sufficient to be commercially exploitable. No assur-ances can be given as to whether there will be sufficient volumes, that oil will ultimately be recoverable or of any future oil production.

InterOil is continuing to test the lower sections of the Antelope reservoir to further its understanding of the nature and volume of oil in the reservoir and complete the original objective of testing for higher condensate-to-gas ratios at the base of the gas column.

InterOil Corporation, traded on the NYSE, is develop-ing 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 4.6 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. NN

Nikiski News April 20092

InterOil Recovers Oil from First Drill Stem Test In Antelope-1 Side Track

(L) Phil Mulacek shakes hands with Papua New Guinea Prime Minister Somare. There were a whole lot of smiling faces after InterOil’s drill stem teston Antelope-1 (shown above and below)recovered oiland oil emulsion.