PNG Well Runs at Rate of 2.5-4.5MMcfd

InterOil announced that during stabilized flow from drill stem test (DST) #7 at the Antelope-2 Horizontal 2A well in Papua New Guinea, the well flowed gas at rates between 2.5 to 4.5 million cubic feet of natural gas per day (MMcfd) through various choke sizes with limited formation water produced. A stabilized condensate-to-gas ratio (CGR) of approximately 24-27.7 barrels of condensate per million cubic feet of natural gas (Bbls/MMcf) was measured on both a 32/64 and 22/64 inch choke. This is approximately a 60% increase in CGR from DST #1 which was performed at the top of the reservoir and reported on October 14, 2009 at 16.5 Bbls/MMcf. DST #7 was conducted over a 355 foot horizontal interval from 9,357 feet (2,852 meters) to 9,712 feet (2,960 meters) total measured depth, at a true vertical depth (TVD) of 7,743 feet (2,360 meters).

Formation evaluation logs from the entire Antelope-2 Horizontal-2A well were obtained over the total measured depth (TMD) interval of 1,719 feet from 7,937 feet (2,419 meters) to 9,656 feet (2,943 meters) and indicate 99% limestone and dolomite with an average porosity of 10% through the pay intervals. The extensive data gathering process has been successfully completed at the Antelope-2 well and subsequent horizontal laterals. The forward plan is to continue subsurface analysis of the reservoir while preparing the well for long-term production.


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