Monday, August 9, 2010

Interoil Corp. (IOC) Antelope-2 well: Papua New Guinea

Interoil Corp. (IOC) released an update on their Antelope-2 horizontal well located in Papua New Guinea:

Interoil Corp. (IOC) announced that during two separate 24 hour flow periods of drill stem test (DST) #5 at the Antelope-2 horizontal well in Papua New Guinea, the well flowed at a stabilized gas rate between 5.7 and 7.3 million cubic feet of natural gas per day (MMcfd) through various choke sizes with no formation water produced. A stabilized condensate-to-gas (CGR) ratio of approximately 20-21 barrels of condensate per million cubic feet of natural gas (Bbls/MMcf)was measured on a 48/64 inch choke. This is a 21%to 27%increase in CGR from DST#1 which was performed at the top of the reservoir and reported on October 14, 2009 at 16.5 Bbls/MMcf.

The forward plans currently being evaluated are to sidetrack from the current Antelope-2 horizontal wellbore and drill a second horizontal section 33 to 49 feet (10-15 meters) deeper in the reservoir to evaluate reservoir quality and further test the condensate ratio. InterOil is also evaluating the proposed next drilling location based on newly acquired and evaluated seismic and information derived from the directional drilling and horizontal program. Phil Mulacek, Chief Executive Officer of InterOil, commented, “The increase in condensate yield with depth demonstrated by the testing we have undertaken to date gives us a basis for optimism for even higher yields below this tested interval. These results continue to reinforce the project economics of our condensate stripping joint venture, which is progressing with our partner Mitsui & Co., Ltd.”

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