First Drill Stem Test and Reservoir Cores From the Antelope-2 Appraisal Well Confirms Extent of Reef Reservoir
October 14 2009 - 9:30AM
PR Newswire (US)
HOUSTON, and CAIRNS Australia, Oct. 14 /PRNewswire-FirstCall/ --
InterOil Corporation (NYSE:IOC) (POMSoX: IOC), today announced that
drill stem test (DST) #1 in the Antelope-2 well in Papua New
Guinea, tested natural gas and condensate at a rate of 14.1 million
cubic feet of gas per day with 16.5 barrels of condensate per
million cubic feet. The test was conducted in the open hole
interval from 6,011 feet (1,832 meters) to 6,175 feet (1,882
meters) through a 35/64 inch choke with flowing tubing pressure of
2,070 pounds per square inch. The gas flow rate was significantly
limited by the 3/4 inch downhole DST equipment. Prior to initiating
DST #1, the well was cored from 6,057 feet (1,846 meters) to 6,175
feet (1,882 meters) and 117.5 feet (35.8 meters) of 4 inch core was
successfully recovered (99.4% recovery). We believe that the core
sampling indicated very good visual porosity and vugs (small to
medium sized cavities inside the core) from the reefal reservoir.
"We believe that the core demonstrates excellent visible porosity
and the core sample closely resembles the reservoir quality
demonstrated by the flow test at Antelope-1," stated Mr. Phil
Mulacek, Chief Executive Officer of InterOil. "In addition, the DST
and core confirms the presence of reefal dolomitization 345 feet
higher than expected and 2.23 miles from the Antelope-1 well." The
primary objectives of the Antelope-2 well are to: 1) penetrate the
southern margin of the Antelope Reef and determine the extent of
the dolomite cap or higher porosity limestone reservoir predicted
from seismic evaluation; and 2) investigate the lower transition
zone to further quantify and evaluate the nature of the fluid
contacts in the southern extent of the field, in particular
providing more information on the vertical extent and any
commercial potential for either a heavy condensate or oil leg.
COMPANY DESCRIPTION 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 4.6 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 an LNG plant on a site adjacent to
InterOil's refinery in Port Moresby, Papua New Guinea. The Company
is headquartered in Cairns, Australia and has offices in Houston,
Texas, Port Moresby, Papua New Guinea and Singapore. InterOil's
common shares trade on the NYSE in US dollars. FOR INVESTOR
RELATIONS ENQUIRIES: Wayne Andrews Anesti Dermedgoglou V. P.
Capital Markets V.P. Investor Relations mailto: The Woodlands, TX
USA Cairns Qld, Australia Phone: 281-292-1800 Phone: +61 7 4046
4600 Cautionary Statements This press release may include
"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 statements
concerning drilling of the Antelope-2 well in the Elk/Antelope
field, the characteristics of the Antelope reef structure, the
potential for an oil leg, and a review of the Company's resource
estimates. 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 SEDAR, including but not limited to those
in the Company's Annual Report for the year ended December 31, 2008
on Form 40-F and its Annual Information Form for the year ended
December 31, 2008. In particular, there is no established market
for natural gas in Papua New Guinea and no guarantee that oil, gas
or condinsate from the Elk/Antelope field will ultimately be able
to be extracted and sold commercially. There is no guarantee that
an oil leg will be established of a size and grade as to be
commercially exploitable. In addition, there is no guarantee that
the Antelope-2 well will ultimately be successful. Investors are
urged to consider closely the disclosure in the Company's Form
40-F, available from us at http://www.interoil.com/ or from the SEC
at http://www.sec.gov/ and its and its Annual Information Form
available on SEDAR at http://www.sedar.com/. We currently have no
reserves as defined in Canadian National Instrument 51-101
Standards of Disclosure for Oil and Gas Activities. All information
contained herein regarding resources are references to undiscovered
resources under Canadian National Instrument 51-101, whether stated
or not. DATASOURCE: InterOil Corporation CONTACT: Wayne Andrews, V.
P. Capital Markets, The Woodlands, TX, +1-281-292-1800, , or Anesti
Dermedgoglou, V.P. Investor Relations, Cairns Qld, Australia, +61 7
4046 4600, mailto:, both of InterOil Corporation Web Site:
http://www.interoil.com/
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