InterOil Issues Elk-1 Drilling Report

InterOil announced on Thursday that it has drilled a 12 1/4-inch hole to 4,075 feet (1,242 meters) in its Elk Prospect exploration well, which is located in PPL 238 in the Eastern Papua Basin in Papua New Guinea.

According to the company, the hole began swelling and sloughing at approximately 3,150 feet (960 meters) while making a wiper trip. A cement plug was set from approximately 2,766 to 2,560 feet (840 to 780 meters) to establish the kickoff point. The well is being sidetracked to go around the problem area. Presently, the well is kicked off and drilling ahead at 2,621 feet (796 meters).

Previously, InterOil set a 20-inch conductor at 15 feet (5 meters), drilled a 17 1/2-inch hole to 1,007 feet (307 meters), and ran 13 3/8 inches of surface casing.

The planned total depth of the well is approximately 9,843 feet (3,000 meters). The top zone of interest is 4,000 to 4,750 feet in the Puri/Mendi fractured limestone.

InterOil subsidiary SPI (208) is the operator.