Do we need to say more than 63MMcf/d flow rate? And that’s not all…
Here is the PR:
- Gas flow of 63 million standard cubic feet (mmscf) per day, second only in Papua New Guinea to InterOil’s Elk-1 discovery well;
- Estimated condensate rate of 1,130 barrels (bbls) per day;
- Surface flowing pressure at 2,243 psi;
- Down hole reservoir pressure of approximately 3,700 psi;
- High quality condensate of 48 degrees API gravity.
- “The Elk-4 well results are strong and build upon the record flow rate established for Papua New Guinea by the Elk-1 well. A flow rate at 63 million scf per day is a great indicator of the deliverability of the reservoir and quality of the new discovery. The well is now being prepared for acid stimulation which we feel will further enhance its productivity,” said Mr. Phil Mulacek, Chairman and CEO of InterOil.
And guess what, they haven’t even cleaned up the skin yet. Basically what we’re reading here is that we have another monster.
And also noteworthy is that both pressure measures compare favourable to that final monster test at Elk1 in 2006, the one with the 100MMcf/d flow rate. These Elk1 pressures were:
- Surface Pressure 1,990 psi
- Shut-in Pressure 3,160 psi
So, basically, cleaning up the well will further enhance these flow rates, we might even get past that monster 100MMcf/d rate that Elk1 established, a record for PNG (and even in Australia nothing like this has ever been measured).
We feel extremely confident about this stock, there is no doubt about it. It might be that the shorts are manipulating the share price (that is almost certain, actually), but we feel confident they won’t be able to do that for very much longer. Their days seems to be numbered.
This is very encouraging news.
We’re already at a posible 35K barrels of liquids a month, cleaning up the skin will further increase that. It looks like enough for a liquid stripping plant, but we wait the jubilations until we have that confirmed. We’ll leave you with one quote from Mulacek at the institutional investors day:
- The liquids double the value of the resource and InterOil will keep all for their shareholders.