The Antelope-3 Appraisal Well Encountered The Reservoir 217 Feet
Higher Than Prognosis
PORT MORESBY, Papua New Guinea
and HOUSTON, Nov. 30, 2012 /PRNewswire/ -- InterOil
Corporation (NYSE:IOC) (POMSoX:IOC) ("InterOil") announced that
the Antelope-3 appraisal well in Petroleum Retention License 15 in
Papua New Guinea has penetrated
the top of the reservoir at 5,328 feet (1,624 meters) measured
depth, 217 feet (66 meters) above the predrill estimate, and 92
feet (28 meters) higher than the Antelope-1 well. The well
began flowing and was shut in at the surface. Subsequently,
the gas kick was circulated out while flaring. The 9 5/8 inch
liner was then installed, vertical well bore seismic (VSP)
acquired, and the 9 5/8 inch casing tied back to surface with dual
downhole deployment valves completed. Once the blow out
preventer is installed and tested we will be running into hole to
commence drilling the reservoir section in 6 ¼" hole.
The forward plan is to drill approximately 300 feet (90 meters)
in to the reservoir and then conduct a drill stem test over the
open hole section of the wellbore below the casing shoe. After
completing DST#1, we plan to drill the entire reservoir interval to
an anticipated total depth of approximately 8,366 feet (2,550
meters) followed by wireline logging, rotary sidewall coring and
drill stem testing.
The Antelope-3 primary objectives are to: 1) confirm reservoir
depth, composition, character and continuity, 2) provide samples
for analysis to further assist in development well planning, 3)
assist in the gas resource evaluation, 4) satisfy work program
obligations for PRL 15 and 5) complete the well as a future
production well.
On November 27th, 2012,
InterOil was notified by the Papua New Guinea Department of
Petroleum and Energy (DPE) that it had been granted an approval of
license variation to PRL 15, allowing the company to defer the
drilling of a second commitment well from the first two year work
program into the second two year work program. This should allow
InterOil to manage service industry cost as we ramp up to a two
well drilling program without straining the available resources in
PNG.
"The Antelope-3 well has confirmed the top of the reservoir is
over 200 feet higher than prognosis. These results support our
reservoir model, and, all else being equal, should have a positive
impact on our year-end resource estimate. Furthermore, we are
pleased to have the support of Minister Duma and the DPE to allow
flexibility to control costs and logistics of a two rig operation,"
said Mr. Phil Mulacek, Chief
Executive Officer of InterOil.
About InterOil
InterOil Corporation is developing 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 3.9 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 liquefaction facilities in Papua New Guinea.
InterOil's common shares trade on the NYSE in US
dollars.
Investor Contacts for InterOil
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|
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Wayne
Andrews
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Meg
LaSalle
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V. P.
Capital Markets
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Investor
Relations Coordinator
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Wayne.Andrews@InterOil.com
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Meg.LaSalle@InterOil.com
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The
Woodlands, TX USA
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The
Woodlands, TX USA
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Phone: +1
281-292-1800
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Phone: +1 281-292-1800
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Forward Looking Statements
This press release includes "forward-looking statements" as
defined in United States federal
and Canadian securities laws. All statements, other than statements
of historical facts, included in this press release that address
activities, events or developments that the InterOil expects,
believes or anticipates will or may occur in the future are
forward-looking statements, including in particular, strategies and
plans, proposed drilling of the Antelope-3 well, predicted total
depth of the well, the time required to drill, log and test the
well, the depth to the top of the reservoir, the potential for gas
and gas condensate to be encountered by the well, completion of the
Antelope-3 well, and the characteristics of the targeted reservoir.
These statements are based on certain assumptions made by the
Company based on its experience and perception of current
conditions, expected future developments and other factors it
believes are appropriate in the circumstances. No assurances can be
given however, that these events will occur. Actual results will
differ, and the difference may be material and adverse to the
Company and its shareholders. Such statements are subject to a
number of assumptions, risks and uncertainties, many of which are
beyond the control of the Company, which may cause our actual
results to differ materially from those implied or expressed by the
forward-looking statements. Some of these factors include the risk
factors discussed in the Company's filings with the Securities and
Exchange Commission and on SEDAR, including but not limited to
those in the Company's Annual Report for the year ended
December 31, 2011 on Form 40-F and
its Annual Information Form for the year ended December 31, 2011. In particular, there is no
established market for natural gas or gas condensate in
Papua New Guinea and no guarantee
that gas or gas condensate from the Elk and Antelope fields will
ultimately be able to be extracted and sold commercially.
Investors are urged to consider closely the disclosure in the
Company's Form 40-F, available from us at www.interoil.com or from
the SEC at www.sec.gov and its Annual Information Form
available on SEDAR at www.sedar.com.
SOURCE InterOil Corporation