Proceeds from the placement of more than 1 million shares at $US23.18 per share will also be used for general corporate purposes.
InterOil is currently drilling the Elk-4 appraisal well to further delineate the natural gas resource in Elk-Antelope.
The Elk-1 discovery well had successfully flowed up to 100 million cubic feet of gas per day during testing while results from the Elk-2 appraisal well led the company to upgrade in-place gas reserves at the field up from between 3 trillion cubic feet to 15Tcf of gas to 3.5-18.9Tcf.
The Elk gas field is expected to provide gas for Liquid Niugini Gas' proposed LNG project in PNG.
Liquid Niugini, which is an equal joint venture between InterOil, Merrill Lynch and Clarion Finance, is planning to build a two-train LNG plant capable of producing up to 9 million tonnes of LNG per annum from 2012.
