Drilling Update reservoir 217 Ft higher

[jft310]

Per the slides the Eastern Paua Basin may have more than 25 T's ;larger than The Highlands where Exxon and OSH currently are building. Thats explains why OSH took the leases where IOC threw them away they are hoping for some type play in the Eastern Papua. IOC keep the best in the 3.9 million acres thue kept.Trusting Dave Holland has been the smart thing to do.

[Palm]

Wait just a minute. The PR said that the well began to flow to the surface. That's not necessarily good news you know because they didn't say what flowed. That must mean it was WATER!! Mofo management is lying to us again! So now we have a huge water well that is worth what?!! Great, just great!

[admin]

It's flowing champagne, Palm

[Palm]

Even better. Now all those mofoing cannibals up there will get tanked on the champagne fountain and no male's pecker will be safe from getting chopped off and made into pecker soup! Try finding workers to go up there now! Probably why they delayed spudding Elk 3; they have to round up all-female drill crews. Where's Electra when you need her?!!

[Palm]

"These results support our reservoir model, and, all else being equal, should have a positive impact on our year-end resource estimate."

This will be the GLJ official certified estimate since they are only allowed to have one certified resource estimate. However, it will also give credence to the GCA statement in their conservative study where they stated that their estimates could be increased pending future drilling in the structure. Check that box and increase your bids y'all.

[petrengr1]

“Interoil announced that the Antelope-3 appraisal well in
Petroleum Retention License 15 in Papua New Guinea has penetrated the top of the reservoir at 5,328 feet (1,624 meters) measured depth, 217 feet (66 meters) above the pre-drill estimate, and 92 feet (28 meters) higher than the Antelope-1 well.”

So their pre-drill estimate was (217-92) 125 feet lower than Antelope-1 but they actually found it to be 92 feet higher than Antelope-1.


http://shareholdersunite.com/mybb/showth...p?tid=1707 My pre-drill estimate was that Antelope-3 would come in at the same elevation as Antelope-1. So I missed it by 92 feet but I was closer than the IOC pre-drill estimate.

They have now set their 9 5/8” liner and the 9 5/8” tie back to the surface with the dual down hole deployment valves in place. They are now in the process of installing the BOP (blow-out preventers) which should be completed in no more than a couple of days. After completing the installation of the BOP’s they will be pressure tested. Once the BOP equipment is tested satisfactorily they will drill 300 feet of reservoir with a 6 ¼” bit and run DST No. 1. I do not know why they will be drilling with a 6 ¼” bit as the normal size would be 8 ½”. After running the DST with the packer set inside the bottom of the 9 5/8” casing, I expect them to ream this hole out with an 8 ½” bit and complete drilling the hole to TD with an 8 ½” bit so that they can run a 7” liner if they so desire.

Since this will be a DST the flow rate will be limited by the size of the drill pipe and down hole tools and possibly by the surface test equipment if they want to get a good (accurate) test of the gas/liquid ratio. DST No. 1 at Antelope-1 flowed at a rate of 13.1 MMCFD.

Regarding the deferring of the second PRL-15 well from the first two year work program to the second two year work program, that means to defer it beyond today which is the last day of the first two year work program. I think they will start drilling Elk-3 as soon as everything is ready and any necessary approvals have been obtained from the Government.

I believe the sharing of the Service Industry resources probably refers to Schlumberger, Weatherford and Halliburton. If they bring in duplicate personnel and equipment for each well it will cost quite a bit of money and there will be a lot of equipment and personnel sitting idle waiting on the next job. They probably try to time the work so that these personnel and equipment are not required at both rigs at the same time. This should not preclude them from spudding Elk-3 in the near future. They should be able to drill Elk-3 to the top of the reservoir before any of these people are required. It has taken about 55 days to get to this point at Antelope-3. In the next 55 days we should be finished with all of the logging and testing at Antelope-3 so the personnel and equipment will be available for Elk-3.

We need to finish Antelope-3 as soon as possible so the rig can be moved to Tuna-1 where we have another drilling commitment in March 2013. We also have a drilling commitment in March 2013 at Mako/Wahoo-1 and I am still hoping they find another rig for that. Both Tuna-1 and Mako/Wahoo-1 are relatively shallow so they could be drilled with a smaller rig. If IOC can acquire another rig it could be used to drill both wells but it might be necessary to get another extension from the Government on one of the license areas. This would allow Rig-2 to return to Triceratops or one of the other prospects (Mule Deer?).

[Petro2458]

Good stuff. Agree...seems they'd want 7 1/2" pipe to TD. Minor issue but good catch.

All...they definitely took a gas kick. So that's good too.

Petrengr1: I presume this means the structure is flatter and perhaps we have more volume above the contact than they thought. And you make very interesting point that they actually expected to come in down dip of the 1 well.

[TxPm]

from the new presentation:

"InterOil, PacLNG and its partners are currently drilling Antelope-3 which will comply with 1 of the 2 well obligations. Antelope-3 is expected to be finished by the End of December. Elk-3 will then commence drilling mid January to complete the well obligations for years 1 & 2"

This answers some of the questions we had surrounding the timeline on when to expect A3 results & when E3 would start

[admin]

from the new presentation: "InterOil, PacLNG and its partners are currently drilling Antelope-3 which will comply with 1 of the 2 well obligations. Antelope-3 is expected to be finished by the End of December. Elk-3 will then commence drilling mid January to complete the well obligations for years 1 & 2" This answers some of the questions we had surrounding the timeline on when to expect A3 results & when E3 would start

Yes, and it is proof, of cooperative relations between IOC and PNG, as they had to commence drilling by the end of November, but got an extension. If PNG wanted to 'nationalize' part of their resource, they could have done so legally by not granting the extension.

Actions often speak louder than words.

[TxPm]

I agree....I think the focus right now is on using all of our man power and resources to complete A3 before the end of the year which is ok by me. This should help increase resource value and decrease the "risk" of the project to our other partners.