Interra Resources Limited has informed its shareholders that its jointly controlled entity, Goldpetrol Joint Operating Company Inc., commenced drilling a shallow development well, Yenangyaung 3233, in the Yenangyaung oil field in Myanmar on September 9, 2008.
Interra has a 60% interest in the Improved Petroleum Recovery Contract of the Yenangyaung field and also owns 60% of Goldpetrol which is the Operator of the field. Well 3233 will be drilled by Goldpetrol's Cooper LTO 350 rig in the central area of the field. Interra's share of the cost of drilling will be funded from existing funds on hand.
All sands from the U900FT sand to the U3200FT sand have been oil bearing in this central Yenangyaung area and all wells in this block have produced oil. The objective of well 3233 is to drain oil primarily from the 3000FT, 3100FT and U3200FT sands which reservoir pressure and static fluid measurements in nearby wells indicate have good potential. There are at least 6 additional sands that can be classified as secondary objectives. This well will be drilled to 3,100 feet in a structural high position and it is anticipated that production will be established in one or more formations.
Interra estimates that the results of the drilling should be available in approximately two months' time. Interra will announce the results of the drilling operation as soon as they may be ascertained. Additional updates reflecting critical or unexpected events during drilling will also be announced.
Interra wishes to advise that investors should exercise due care and caution when trading Interra's shares. It is not certain that the development drilling mentioned above will ultimately yield commercially recoverable hydrocarbons or profitable production.
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