The Antelope-3 Appraisal Well Encountered The Reservoir 217 Feet Higher Than
PORT MORESBY, Papua New Guinea and HOUSTON, Nov. 30, 2012 /CNW/ - 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 27(th), 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 |
|Wayne Andrews |Meg
|V. P. Capital Markets |Investor
Relations Coordinator |
|The Woodlands, TX USA |The
Woodlands, TX USA |
|Phone: +1 281-292-1800 |Phone: +1
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
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