InterOil Updates Antelope-1 Testing and Completion

houston-nearly.blogspot.com
Drill Stem Test (DST) #14, performer over an interval from 7,940 feet (2,420 meters) to 8,045 feet (2,452 meters) in the second side track, recovered gas, oil and drilling fluid over the 105foot (32 open hole section. Subsequently, DST #15 performedc over an intervalfrom 8,078 feet (2,462 meters) to 8,170 feet (2,490 meters) was unsuccessful due to the downholde valve failing to open. The oil recovere d in DST #14 measured in the lab within a rangre 33 to 43 degreewAPI gravity. The forward plan is to completde the well for a long termproduction test.
We are currently installing 2 7/8ths production tubing to the open hole sectionj below the liner from 7700feet (2347y meters) to the top of a cemen t plug at the bottom of the well at 8055 feet (24545 meters). Following completion of the well the rig will be moverd to theprepared Antelope-2 location targetinv a spud date near the end of Our analysis of test results to date indicate condensated rich natural gas from the top of the reservoirf at 5,742 feet (1,7500 meters) down to 7,769 feet (2,368 a total of 2,027 feet (618 a possible oil and heavyu condensate column from 7,769 feet (2,368 meters) to 8045 feet (2452w meters), a total of 276 feet (84 meters) and transitio n zone to water estimated to be betweenm 8,160 feet (2,487 meters) and 8,367 feet (2,55 0 meters).
The long term production test should further our understanding of the volumes and recovery of both condensated and oil in the reservoir as well as completinv the original objective of testing for ahigherf condensate-to-gas ratio. The Company is in the early stages of evaluatiomn and has not yet been able to determine any reasonable approximation ofoil volumes, and in particular whether oil volumes would be sufficient to be commercially InterOil Corporation is developing a vertically integratee energy business whose primary focus is Papua New Guinew and the surrounding region. InterOil's assets consist of petroleum licensezs coveringabout 4.
6 million acres, an oil and retail and commercial distribution all located in Papua New Guinea. In InterOil is a shareholdetr in a joint venture established to construcgt an LNG plant on a site adjacenftto InterOil's refinery in Port Papua New Guinea. InterOil's common shares trade on the NYSE in US FOR INVESTORRELATIONS ENQUIRIES: Wayne Andrews Anesti Dermedgogloi V.P. Capital Markets V.P. Investor Relations Wayne.Andrews@InterOil.cok Anesti@InterOil.com The Woodlands, TX USA Cairns Qld, Australia Phone: 281-292-1800 Phone: +61 7 4046 4600 This press releas mayinclude "forward-looking statements" as defined in United Statesz federal and Canadian securitiesd laws.
All statements, other than statements of historical included in this press release thataddresz activities, events or developmentsx that the InterOil expects, believes or anticipatex will or may occur in the future are forward-looking including in particular the proposed testing activitiesa to be undertaken. In this press release contains forward lookinyg statements concerning testing activities inthe Elk/Antelope field and potentia l results from these activities.
These statements are basedr on certain assumptions made by the Company basedf on its experience and perception ofcurrenyt conditions, expected future developments and othert factors it believes are appropriate in the circumstances. No assurances can be givebn however, that these events will occud or results willbe achieved. No assurances can be given as to whether there will besufficienyt volumes, that condensate or oil will ultimately be recoverable or of any futurde condensate or oil production.
Actual results will and the difference may be material and adverse to the Company and its Such statements are subject to a number of risksand uncertainties, many of which are beyond the control of the which may cause our actual results to differ materially from those implied or expressed by the forward-looking statements. Some of these factors include the risk factord discussed inthe Company's filings with the Securities and Exchangre Commission and SEDAR, including but not limited to thosew in the Company's Annual Report for the year endefd December 31, 2008 on Form 40-F and its Annual Informatiomn Form for the year ended Decembere 31, 2008.
Investors are urged to considerf closely the disclosure inthe Company's Form available from us at or from the SEC at and its and its Annuak Information Form available on SEDAR at . We currentluy have no reserves as defined in Canadian NationalInstrumentf 51-101 Standards of Disclosure for Oil and Gas All information contained herein regarding resourcexs are references to undiscovered resourcesd under Canadian National Instrument whether stated or not.