SINGAPORE and PORT MORESBY, Papua New Guinea, July 14, 2014 /PRNewswire/ -- InterOil Corporation (NYSE, POMSox: IOC) has suspended the Wahoo-1 well in PPL474 in Papua New Guinea after intersecting gas and higher-than-expected pressures that could compromise rig safety.

Significant concentrations of methane, ethane, propane and butane have been recorded and are believed to be entering the well bore from permeable zones above the predicted reservoir zone, which is yet to be penetrated.

The gas is characteristic of thermogenic hydrocarbons, which are indicative of an active hydrocarbon-generating source rock.

The Wahoo-1 well was designed for high pressures based on data from other wells in the region but the pressures have exceeded by nearly 50% even those of InterOil's Antelope discovery, 170km to the north-west.

After a review by drilling and engineering teams and expert advisers, InterOil has concluded that drilling ahead would pose an unacceptable safety risk to people and the rig.

The company has received approval from the PNG Department of Petroleum and Energy to suspend the well.

Operations to resume as soon as practicable

InterOil intends to resume operations as soon as practicable following a detailed review of well engineering, equipment and options, when the company is satisfied it is safe to proceed, and after the regulator has approved the company's plans.

An option includes testing of the gas-bearing permeable zones encountered in the Orubadi mudstone.

Progress on Wahoo-1 has confirmed an effective seal in the Orubadi mudstone, as well as the presence of thermogenic hydrocarbons, both of which are key components to a working petroleum system.

Further drilling is required to confirm the presence of a reservoir below the current total depth of the well before Wahoo can be considered a discovery.

"The Wahoo-1 well was designed for high pressures based on data from other wells in the region but the pressures have exceeded by nearly 50% even those of InterOil's Antelope discovery, 170km to the north-west."

.InterOil intends to resume operations....

I like the tone of this Bloomberg article.  It appears that IOC contacted Bloomberg directly.  IOC used Bloomberg as the means to announce/confirm receipt of the TOT payment after deal closing (so Don Spector told me.)  I like that, too.

'Spartina' pid='46922' datel Wrote:When I asked GB @ the agm about the pressure @ wahoo being so high, I said that's a good thing right? His reply was an all resounding "Yes" Then I posed the same question to MH and he cautioned me that yes, but it doesn't mean oil or gas, it could also be water causing the pressure. At the time he didn't say anything about the gas they found that was mentioned above. If this is something they have found since the agm this could be significant in that it certainly seems that with the gas shows that they are talking about, it's more likely gas at this point than water causing the pressure. I don't know this for sure maybe pet could chime in. This will be huge if it's true. Remember how Dave Holland was so keen on this structure because of it's location and tremendous logistics. This could be a game changer.

The wabbit too big to pull out of the hat?  Need a bigger hat.