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Oslo, 4 March 2015: The Board of Directors of Interoil Colombia Exploration and Production Inc ("Interoil" or the "Company") is pleased to announce that a settlement has been reached with Trayectoria Oil & Gas ("TOG") in relation to the Altair and COR-6 exploration licenses in Colombia.
Interoil and TOG entered into an assignment agreement in February 2013 regarding the rights of the exploration and production contracts Altair and COR-6. A dispute arose under the assignment agreement, which was referred to arbitration in March 2014.
Interoil and TOG have now agreed to settle the dispute and have entered into a settlement agreement under which TOG will pay Interoil US$4,000,000 in four instalments as follows:
30 June 2015 US$ 500,000
30 September 2015 US$ 1,000,000
30 December 2015 US$ 1,000,000
30 March 2016 US$ 1,500,000
The payment is guaranteed by 5 tradable promissory notes totalling US$ 5,200,000 and Interoil can claim against Trayectoria in the future in the event one or more instalments are not paid and execute the promissory notes.
Interoil and TOG will request for termination of the arbitration proceedings.
Alejandro Jotayan, Chief Executive Officer of Interoil, commented:
"We are very pleased to have reached an agreement with Trayectoria, that will enable us to focus on the development of our licenses and avoid time-consuming and expensive litigation. We plan to use the proceeds in our drilling program for Llanos-47."
Contact:
ir@interoil.no
Interoil Exploration and Production ASA is a Norwegian based exploration and production company - listed on the Oslo Stock Exchange - with focus on Latin-America. The Company is operator of several production and exploration assets in Colombia. Interoil currently employs approximately 95 people and is headquartered in Oslo.