InterOil Begins Moose #2 Well in Papua New Guinea

InterOil reports that its Moose #2 exploration and appraisal well commenced drilling on December 9, 2003. The Moose #2 is the second well to be drilled on the Moose structure, located on Petroleum Prospect License 238.

The Moose structure is the first structure to be drilled of InterOil's previously announced multi-well exploration program on 16 independent structures in the Eastern Papuan Basin. The Moose #2 well targets the Late Cretaceous Pale sandstone, located below 1,100 meters (3,609 ft), with a secondary appraisal target of Eocene limestone, previously identified in the Moose ST-1, between approximately 600 and 800 meters (1,968 and 2,625 ft).

The Moose #2 well will be used to appraise the previously identified limestone target where multiple oil shows were encountered in the Moose ST-1 in July, 2003, approximately 4.5 km (3 miles) away. InterOil will use air and foam to drill through the limestone target zone. The casing design of the Moose #2 benefits from the knowledge gained from drilling the Moose ST-1.