InterOil Spuds Moose Well
InterOil reports that its Moose-1 well was spudded in Papua New Guinea this week. The Moose is the first well of InterOil's previously announced eight well drilling program and targets the Late Cretaceous Pale and Subu Sands, at 1,500-2,000 meters (4921-6561 feet) with a secondary target of Eocene limestone, at 1,100 meters (3,608 feet). The drilling of the Moose is expected to last approximately 30 days.
Through an alliance with General Exploration Drill Holdings (“GEDH”), parent of the drilling contractor, RB Drilling, of the Moose Prospect, a special purpose built drilling rig was developed encompassing slim hole drilling technology. InterOil and GEDH have entered into an agreement, subject to regulatory approvals, whereby InterOil will issue approximately 31,240 shares of common stock at a price consistent with its last equity issuance, or C$13.75 per share, to GEDH for part of the payment for the drilling rig and design services. In total, this equates to a transaction value of approximately C$429,550 (US$293,654). These shares will be subject to a four-month hold period.
"We welcome RB Drilling's commitment to InterOil and our drilling program," stated Phil Mulacek, CEO of InterOil. "We are pleased to add RB Drilling to a prestigious group of corporate partners that have supported us, and who believe in InterOil's future as an emerging integrated energy company."
"We requested an arrangement that gives us ongoing interest in the drilling program, and offers incentive for us to maximize our performance," said Rod Trigwell, General Manager of RB Drilling. "It reflects our confidence in the InterOil drilling program."
- Exxon, InterOil Extend Merger Deadlines (Dec 14)
- Total Seen Unlikely to Fight ExxonMobil over South Pacific Gas (Jul 20)
- InterOil Spuds Triceratops-3 Well in Papua New Guinea (Jun 15)