InterOil Uses Falcon Technology on Papua New Guinea Field

InterOil has contracted BHP Billiton to run the Falcon survey over exploration licenses PPL210 and PPL230. InterOil is the first company to utilize this technology in Papua New Guinea and the 7500 km survey to be run, is the largest oil exploration program to utilize the Falcon technology. InterOil considers the survey to be a significant technological breakthrough to confirm previously identified structures that are potential drilling prospects in PPL 210 and PPL 230. Mr. Andy Carroll, General Manager, Exploration and Production says, "InterOil has all the ingredients for an exciting exploration program and this survey is a cost effective and time saving technique that can identify structures and confirm the final targets for our multi-well drilling program."

The Falcon survey is a highly sensitive instrument and process system that can detect minute changes in gravity fields due to different rock densities, and will also image underground pinnacle reefs, folds and faults. This revolutionary process is based on US Military technology developed by BHP Billiton for minerals exploration. The first commercial system was delivered to BHP in 1999 after seven years of development, with a ten-year exclusive license on the Falcon technology. InterOil has more than 4 million acres held under exploration licenses PPL 230 and 210 in PNG. The most prospective targets are the 877 feet thick "Pale" sandstones cored at Subu-1 and Subu-2. These sands are below a relatively dense limestone that can be imaged by the Falcon survey, supporting the use of the technology. Synthetic modelling has shown that the survey can image the Puri structure in InterOil's PPL 230 that was drilled and flowed 1610 barrels of oil per day in 1957.