Antelope-3 drill stem test confirms continuity of highly productive reservoir

Thursday, Dec 13, 2012

PORT MORESBY, Papua New Guinea and HOUSTON, Dec. 10, 2012 /CNW/ - InterOil Corporation (NYSE:IOC) (POMSoX:IOC) announced that drill stem test (DST) #1 in the Antelope-3 well in Papua New Guinea, tested natural gas and condensate with a maximum gas rate of 44.8 million cubic feet of gas per day with a flowing tubing pressure of 2,331 psi.

The Antelope-3 well was drilled conventionally from 5,321.8 feet (1,622 meters) with cumulative down hole drilling losses of 647 barrels until at 5,817 feet (1,773 meters) when there was a total loss of circulation. The well was then drilled with managed pressure to 5,905.8 feet (1,800 meters) the current depth.

At 5,905.8 feet (1,800 meters) the reservoir is comprised limestone and minor dolomite similar to the upper limestone reservoir observed in the uppermost Antelope-2 well.

Antelope-3 DST#1 utilised a casing packer set at 5,259 feet (1,602.9 meters) in the 9 5/8" casing and tested a 584 foot (178 meter) open hole interval from 5,321.8 feet (1,622 meters) to 5,905.8 feet (1,800 meters) through several choke sizes from 24/64 to 64/64 inch.

The well flowed at a maximum rate of 44.8 million cubic feet of gas per day with 10.4 to 14.9 barrels of condensate per million cubic feet through a 64/64" choke. The analysed gas composition is similar to Antleope-1 and Antelope-2.

The test was conducted through drill pipe and the gas flow rate was
significantly limited by the downhole DST equipment and the surface separation package.

"InterOil is pleased to have encountered the reservoir higher than anticipated and to confirm continuity of highly productive reservoir at the Antelope-3 location. We are encouraged by the similarities to the Antelope-2 well with extended lateral development of this upper limestone unit," stated Mr. David Holland, General Manager of Exploration of InterOil.

About InterOil
InterOil Corporation is developing a vertically integrated energy business whose primary focus is Papua New Guinea and the surrounding region. InterOil's assets consist of petroleum licenses covering about 3.9 million acres, an oil refinery, and retail and commercial distribution facilities, all located in Papua New Guinea. In addition, InterOil is a shareholder in a joint venture established to construct an LNG plant in Papua New Guinea. InterOil's common shares trade on the NYSE in US dollars.

SOURCE InterOil Corporation

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