"Our drilling program in Colombia (is) encouraging. Based on our latest drilling and testing results, we are adjusting our production estimates in Colombia from 1500 bopd to 2500 bopd. In Peru it is more or less as expected, but we are modifying the estimates from 3300 bopd to 3000 bopd for 2007. In total we expect an average production of 5500 bopd in 2007, compared to the previous guiding of 4800 bopd," said Nils N. Trulsvik, InterOil's CEO.
InterOil Exploration & Productions` two last wells in Colombia produced an average of 400 bopd each, against the projection of 50 bopd each. In Peru, InterOil Exploration & Production drilled a total of eight wells in the fourth quarter of 2006 in the Bronco area of Block IV, with large variations in the results.
"Our average production for the 8 wells drilled last quarter in Peru is 84 bopd, which is in line with the expectations of 80 bopd. The wells have large variations in production, and will require further studies before we can ascertain how to best develop this area further," Trulsvik noted.
The drilling program remains unchanged for 2007, and includes 8 wells in Colombia and 19 wells in Peru. The budget per well in Colombia for 2007 is 200 bopd and for Peru it is 80 bopd.
In 2006 the average drilling cost per well was US$650.000 in Peru and US$1,2 million in Colombia. The average payback time was 3 to 4 months per well.
"We are looking forward to continue our drilling program to utilize the potential of our production and exploration assets in Peru and Colombia. Our current production has now reached approximately 4000 bopd and we estimate that the production by the end of 2007 will reach approximately 7000 bopd," concluded Trulsvik.
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