InterOil Tests Positive Oil from Second Antelope-1 Sidetrack

InterOil announced the recovery of oil from testing below the 7-inch liner in the second sidetrack of the Antelope-1 well. Drill Stem Test (DST) #12, performed over an interval from 7,700 feet (2,347 meters) to 7,881 feet (2,402 meters) in the second side track, recovered gas, condensate and oil over the 180 foot (55 meter) open hole section.

Subsequently, DST #13 was performed over an interval from 7,792 feet (2,375 meters) to 7,881 feet (2,402 meters) to isolate the oil zone from the gas bearing zone included in DST #12. DST #13, completed on May 28th, recovered oil and very little gas from this 89 foot (27 meter) interval. The oil measured 35 degree API gravity in the field. Detailed analysis of the oil samples and downhole pressures are underway.

DST #13 is the third test in the Antelope 1 well from which oil has been recovered. The forward plan is to drill an additional 148 feet (45 meters) then perform another DST with a view to evaluating the extent of the oil column height. Additional zones of interest may also warrant further drilling and testing contingent on the results derived from the next DST. The Company is in the early stages of evaluation and has not yet been able to determine any reasonable approximation of oil volumes, and in particular whether oil volumes would be sufficient to be commercially exploitable.

The Company is continuing to test the lower sections of the Antelope reservoir to further its understanding of the nature and volume of both condensate and oil in the reservoir and complete the original objective of testing for higher condensate-to-gas ratios and to determine the existence of an oil leg at the base of the gas column.


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