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InterOil’s drilling report no6 is out

May 14th, 2008 · 2 Comments

We can draw a few provisional conclusions. 

1) It seems they rushed the job, the data show they drilled only 60 meters into the limestone structure (which holds the gas), that’s hardly total depth. There is still a good 200 meters to drill.

2) They did an early DST test way before drilling to total depth nevertheless, perhaps they needed to show the people participating in the financing something, although it also seems they were not on time to do so (but the financing went ahead nevertheless, a pretty good sign, we would say).

3) Even this shows significant gas flows of 7MMcf, that pressure is likely to increase considerably once they drill deeper, we understand.

4) There is also a significant amount of liquids, more than twice the amount at Elk1. This is important, as a commercial quantity could be used directly in the refinery, providing instant cash-flow.

5) We can’t wait to see what the test results will be once they can test the whole limestone formation. This will take a couple of weeks still. It’s an ongoing story.

Tags: IOC

2 responses so far ↓

  • 1 roberto // May 14, 2008 at 3:57 pm

    What do you think, then, will be discussed in the Conf. Call? I.e. now that the Report-6 is out and it would seem that TD (etc.) is a week or two into the future, will the Conf. Call at this point be just a ‘formality’ so to speak? I would be interested in your insight, conjecture and specualation.

  • 2 admin // May 14, 2008 at 4:02 pm

    Quarterly results and it will put the drilling test into perspective. They will probably say that these early results (and that is what they are) are looking encouraging, and they would probably be right to say so, as we understand the situation.