InterOil Completes Mana-8 in Colombia

InterOil last week completed the Mana-8 well in the southern part of the Mana License in Colombia. The well, classified as an exploration well, successfully penetrated several hundred feet of oil-bearing reservoir in the Upper Cretaceous Monserrate Formation. The well was drilled to total depth of 4341 ft.

The well has now been completed and the initial production is 350 bopd with a 15/64-inch choke, a result slightly above expectations.

The positive result of this southernmost well on the Mana structure together with the improved quality of the reprocessed 3D in the same area, shows that the Mana structure can be extended further to the South. As a result of this InterOil will now re-map this area and plan for additional production wells to be drilled after the ongoing drilling campaign.

The well also encountered oil in a shallow level. This is the second time InterOil find oil in this shallow level. As a result of this, InterOil will start planning shallow wells in the Southern Mana structure. These well can be drilled and put in production at a low cost. The first test with a shallow well will most likely take place in Q4 2007.

The rig has now moved to the Mana-9 location and is presently at 1600 ft. This is an infill production well and InterOil expects the well to reach TD in 10 days.

The rig will drill a total of 7 new wells back to back on the Mana structure before drilling one well on the neighboring Toqui Toqui Field. Given a positive result, the wells can be put in production immediately. The last well in the 2007 drilling campaign is an exploration well to be drilled in the Paraiso license, a license west of the Mana license and where mapping of new seismic has disclosed a structure similar to the Mana structure.

The Mana License is operated by InterOil with a 70% WI. Ecopetrol, the state oil company has a 30% WI.

InterOil Exploration & Production ASA is a Norwegian-based exploration and production company focusing on Latin America and West Africa. The company is operator of several production and exploration assets in Peru and Colombia and is an active license partner in Angola and Ghana. InterOil currently employs approximately 200 people and is headquartered in Oslo.

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