InterOil Recovers Oil from 1st Drill Stem Test of Antelope-1 Sidetrack

InterOil Corporation announced the recovery of oil and oil emulsion from the Antelope-1 side track. Initial laboratory readings indicate that the oil is approximately 44 degrees API gravity. During Drill Stem Test (DST) #8, a limited amount of oil and drilling fluid were recovered from an interval of 7,809 feet (2,380 meters) to the current total depth (TD) at 7,930 feet (2,416 meters). The side-track is in close proximity to the original Antelope-1 well bore, which was cemented from total depth at 8,892 feet (2,710 meters) to 7,727 feet (2,355 meters).

Analysis of the test pressure data, oil and oil emulsion by third parties is in progress. The Company is in the early stages of evaluation and has not yet determined any approximate volume, and in particular whether oil volumes would be sufficient to be commercially exploitable. No assurances can be given as to whether there will be sufficient volumes, that oil will ultimately be recoverable or of any future oil production.

The Company is continuing to test the lower sections of the Antelope reservoir to further its understanding of the nature and volume of oil in the reservoir and complete the original objective of testing for higher condensate-to-gas ratios at the base of the gas column.