The rig will be commissioned at the refinery site for assembly and testing prior to its anticipated mobilization to our Elk exploration prospect. We currently intend to commence drilling on our Elk exploration prospect in November 2005.
"We are excited by the arrival of our new rig, at a time when there is a worldwide shortage of rig availability, that will provide us with great cost advantages going forward. This rig signals a key event in our exploration program allowing InterOil to kick off a world class drilling program for hydrocarbons in PNG. The rig has been engineered to meet the depth requirements of our key structures and we believe that it will shorten the drilling time between spud to target depth on our next six exploration wells," said Mr Phil Mulacek, CEO and Chairman.
InterOil is developing a vertically integrated energy company whose primary focus is Papua New Guinea and the surrounding region. Its assets comprise an oil refinery, upstream petroleum exploration licenses, and retail and commercial distribution assets. The majority of the refined products from InterOil's refinery are secured by off-take contracts with Shell and InterOil's wholly-owned subsidiary, InterOil Products Limited. BP Singapore is InterOil's agent for crude oil supplied to the refinery. InterOil is also undertaking an extensive petroleum exploration program within its eight million acre license area located in Papua New Guinea.
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