InterOil has initiated cash calls from its indirect participation partners, PNG Energy Investors LLC and PNG Drilling Ventures Ltd, for the work program to test and complete the limestone section of the Moose-1 ST. The subsequent work program will include logging and flow testing of the limestone section. InterOil anticipates starting the subsequent work program within the next 3 weeks. InterOil has cased off the limestone section in anticipation of the subsequent work program and continues drilling ahead to its primary targets, the Pale and Subu sandstones. These targets are expected to be reached prior to 1,700 meters (5,578 feet).
InterOil's analysis is based on preliminary data only and additional testing, production and development drilling will be required to determine the structure's resource potential.
"The initiation of the testing program on the first of a 16 well exploration program in PNG is an exciting step, which will allow us to better quantify the potential of the Moose structure and of other structures in our multi-well exploration program," said Andy Carroll, InterOil's General Manager of Exploration and Production.
InterOil is focused on Papua New Guinea and the surrounding region, and is developing an integrated energy business consisting of an oil refinery, petroleum exploration, and retail assets. The majority of product from the refinery is secured by contracts with Shell Overseas Holdings Ltd. BP Singapore is the exclusive agent for all crude oil supplied to the refinery. In addition to the refinery and retail assets, InterOil has commenced an extensive exploration program in Papua New Guinea.
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