IOC Reports Antelope-3 Appraisal Well Encountered Reservoir 217 Feet Higher than Expected

InterOil Corporation

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 predrill estimate, and 92 feet (28 meters) higher than the Antelope-1 well. The well began flowing and was shut in at the surface.  Subsequently, the gas kick was circulated out while flaring.  The 9 5/8 inch liner was then installed, vertical well bore seismic (VSP) acquired, and the 9 5/8 inch casing tied back to surface with dual downhole deployment valves completed.  Once the blow out preventer is installed and tested we will be running into hole to commence drilling the reservoir section in 6 ¼" hole.  The forward plan is to drill approximately 300 feet (90 meters) in to the reservoir and then conduct a drill stem test over the open hole section of the wellbore below the casing shoe. After completing DST#1, we plan to drill the entire reservoir interval to an anticipated total depth of approximately 8,366 feet (2,550 meters) followed by wireline