Interoil Exploration and Production ASA announced two transactions which strengthen the company’s production growth outlook in both Colombia and Argentina. In Colombia, Interoil has signed a farm-out agreement with SLS and Quantum Resources for the drilling of the remaining committed exploratory well (Mazorca) in the Altair block. This agreement is subject to Interoil’s obtainment of the funding required to meet its obligations under the farm-out agreement. The subscription of the small private placement (the “Private Placement”) announced herein constitutes a Company action aimed at securing such funding. In Argentina, Interoil has signed an agreement with Velitec SA to invest in the re-opening of 15 wells in the Mata Magallanes Oeste (MMO) oil field, including the reconditioning of the nearby dispatch battery at the Las Mesetas #3 (LM#3), located within Las Mesetas Field treatment facility (currently owned and operated by YPF). Drilling of the Mazorca well in the Altair block will commence shortly. As part of the agreement, SLS and Quantum Resources will retain a 22% equity interest in the well and cover 50% of the drilling expense. The cost of the well is estimated at between USD 3.0 million (for dry well) and USD 3.3 million (for a successful discovery). The well will target multiple objectives along its path where the primary exploration target is the Gacheta formation (3,000 meters depth), which is an important producing formation in the Llanos Basin and has shown hydrocarbon potential in the Altair Block, specially the Mizar-1 well which has produced sweet 20 API oil at 337 bopd and Altair-1 which has shown oil but never tested due to mechanical problems when casing the well for testing. Interoil estimates Mazorca’s prospective resources to reach 1.5 MMbbls with a 36% Probability of Success (PoS). Interoil’s exploration commitment at Altair will be fulfilled with this new well. If the well results in commercial discovery and production, 100% of the net oil operating income (oil sales after royalties and lifting costs) will be allocated to repay the investments. Once investment pay-out is reached, then the net oil operating income will be split as per equity interest with 78% share to Interoil.