Interra Resources has informed shareholders that the operator of the Tanjung Miring Timur ("TMT") oil field in Indonesia has commenced drilling a development well, TMT-51, on November 1, 2008. Interra owns a 70% interest in the TMT Technical Assistance Contract. The TMT oil field is onshore and is located in South Sumatra.
The owner of the remaining 30% and operator of the field is PT Retco Prima Energi. Well TMT-51 is the first of a 3 well development program scheduled for 2008. The program is anticipated to be completed by early 2009. All the wells will be drilled by an external drilling contractor. Interra's 70% share of the cost of the drilling will be funded from existing funds on hand.
TMT is currently producing in excess of 725 barrels of oil per day from 33 wells. Production is from multiple zones within two formations being the deeper Talang Akar ("TAF") sandstones and the overlying Baturaja ("BRF") limestones.
Most of the field's producing reservoirs are the sandstones of the TAF and these will be the primary objective of well TMT-51. This well is planned to be drilled to approximately 1,200 meters to the basement. It is a direct offset to and targets the same producing formation as well TMT-48 which was completed in May 2007 as an oil producer and is also in a similar structural position.
Well TMT-48's cumulative production to date is in excess of 80,000 barrels of oil and its production continues to be around 200 barrels of oil per day from the TAF sandstones. This lowermost TAF sandstone has seen only very minor production in the remainder of the field, so this well and well TMT-48 will set up a new deep objective.
In order to evaluate the sandstones and other aspects of the field, a 3D seismic survey is scheduled to be undertaken in late 2008. Interra estimates that the results of this well should be available in approximately two months' time. The Company will announce the results of the drilling operation as soon as they may be ascertained, as well as the spud of the next well in the drilling program.
The Company 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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