InterOil provided an update on its operations.

InterOil Chief Executive Officer Phil Mulacek said, "The Antelope-2 horizontal well has accomplished multiple objectives. First, it has confirmed an increasing condensate-to-natural gas ratio (CGR) of 18 barrels per million cubic feet of natural gas, 12% higher than observed at the top of the reservoir. Second, the horizontal demonstrated dolomitization and higher porosity deeper in the reservoir than previously modeled. These results assist the already economic returns estimated for the project with our joint venture partner Mitsui & Co."

Antelope-2 Horizontal Extended Reach The Antelope-2 horizontal well, drilled in an easterly direction, achieved a length of 2,569 feet (783 meters) beyond liner shoe reaching a total of 3,066 feet (934 meters) from vertical well bore. At a true vertical depth (TVD) of 7,668 feet (2,337 meters), the well encountered a gradual lithology change, including increased dolomite, observed while drilling with mud returns for the first 1,460 feet (445 meters). The Company converted to "managed pressure drilling" from 9,394 feet (2,863 meters) measured depth to TD.

Electric Logs Confirm Increased Porosity Electric logs from the Antelope-2 horizontal indicate increased porosity of 11.1%, an 80% increase from the comparable zone in the vertical wellbore which averaged approximately 6.0 % in the comparable horizon. The horizontal well encountered a dolomitized zone which enhanced reservoir porosity. Porosity measurements exceed the year-end 2009 reservoir model for this portion of the reservoir.

Antelope-2 Horizontal Drill Stem Test #4 Confirms Higher CGR Drill Stem Test #4, performed on lateral section of the well from 7,933 feet (2,418 meters) to 10,502 feet (3,201 meters) measured depth (MD), recovered 18 Bbls/MMcf, a 12% increase over the 16 Bbls/MMcf recovered in DST#1 at the top of the reservoir. During the 46 hour test the well flowed at a maximum rate of 11 MMcf/d through a 1/2 inch choke, a rate that was restricted by drill pipe and downhole equipment. The pressure draw down during the test averaged 3-4 psi with flowing bottom hole pressure of 3,699 psi. The minimal pressure draw down is in indicator of the ultimate flow capacity of the well which results from the higher porosity encountered.

Tags: InterOil Corporation