InterOil says that during the last seven hours of drill stem test (DST) 2 at the Antelope-2 well in Papua New Guinea the well flowed at a stabilized rate of approximately 11 MMcfd on a 48/64 inch choke and the condensate-to-gas ratio (CGR) averaged 20.7 barrels per million cubic feet of natural gas. This is a 15% increase in CGR from DST 1 which was performed at the top of the reservoir.

Prior to initiating DST #2, casing was set in the well to a depth of 7,290 feet (2,222 meters) short of total depth of 7,415 feet (2,260) meters due to an impassable ledge. The well was subsequently drilled an additional 213 feet, from 7,415 feet (2,260 meters) to 7,628 feet (2,325 meters) and DST #2 was conducted with a packer inside the casing shoe over the 338 foot (103 meter) open hole section from 7,290 feet (2,222 meters) to 7,628 feet (2,325 meters).

The forward plan is to perform one more DST in the lower section of the current open hole then drill and core from the current total depth into the targeted heavier condensate and potential oil zone where the company looks to perform additional DST's and formation evaluation work. Following testing and logging of the lower vertical section of the wellbore, InterOil plans to drill a horizontal lateral to explore a potential oil zone.

Phil Mulacek, Chief Executive Officer of InterOil, commented, "We anticipate that the higher condensate ratio tested in DST #2 of the Antelope structure will improve the previously estimated economics of the stripping plant proposed to be constructed in the Gulf Province."

Tags: InterOil Corporation