Interoil to Develop Cabinda North with sonangol

Interoil to Develop Cabinda North With Sonangol

10-25-2007

Interoil has been exclusively invited by Sonangol to participate in an existing license onshore in Angola.

The Cabinda North license area with several discoveries, is on trend and not far from major production in Congo (Brazzaville), and very close to the Luifica discovery made by ENI earlier this year.

Sonangol P&P will be operator with a working interest (WI) of 20%, which is their normal participation. IOX has been invited to take 21% (WI).

"In view of our ambition to become operator onshore in the upcoming bidding round next year, this direct invitation by Sonangol to participate in the highly prospective Cabinda North Area onshore, is very encouraging," said CEO Nils N Trulsvik.

"Apparently our successful drilling experience onshore Peru and Colombia during the past two years qualifies IOX as an interesting partner," said Marten Rod, chairman of Interoil.

Interoil is still negotiating the final terms and signature bonus for the license. We expect the negotiation to be completed during the next two months and will inform the market accordingly.