InterOil has accelerated its drilling program currently underway in Papua New Guinea. This follows the recently completed private placement of common shares for C$68,750,000 (US$48,950,000 or A$75,725,650) with Institutional Investors in the United States and Canada. InterOil plans to accelerate the drilling and exploration program as follows:
The company has contracted the Simmons Rig #3, a heli-portable conventional oilfield rig that is currently being mobilized and is expected to commence drilling on Sterling Mustang in October 2003.
InterOil is in discussions to contract other rigs by year-end for drilling additional wells on other prospective structures and to drill appraisal and/or development wells as needed.
Testing and appraisal drilling on the Moose structure secondary target consisting of 168 meters (551 ft) of limestone is expected to follow the completion of current drilling and coring activities. This follows the encouraging 14 oil shows in the limestone section.
Two separate drill sites are currently being prepared to drill the first appraisal wells on the Moose structure and will enable the company to delineate the extent of the potentially productive limestone.
Phil Mulacek, CEO of InterOil said, "We are excited to be in a position to execute and move forward with our multi-structure drilling program and better identify the value of our upstream assets for our shareholders."
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.