InterOil Confirms Gas in the Antelope Reef at Antelope-1 Well

InterOil Corporation announced that gas has flowed from its Antelope 1 well confirming hydrocarbons in the Antelope Reef. The top of the reservoir was intersected at 5,735 feet (1,748 meters) with gas encountered at that same depth. Drilling ahead is continuing at 5,892 feet (1,796 meters) with an underbalanced mud system with gas production averaging 2-3 MMcfd whilst drilling with full returns and approximately 3,400 psi of back pressure on the formation. Rates up to 15 MMcfd have been achieved while circulating out gas kicks.

Highlights:

– Reefal shallow marine facies have been encountered with a development of a coarser grained dolomitized section of reservoir. – This dolomitized facies has ‘good to very good’ visible matrix and vugular porosity observed in the cuttings throughout the reservoir interval. – The lower interval associated with a significant gas kick, had a sharp increase in dolomite (avg. 80%).

– The anticipated base of the hydrocarbon column is estimated to be below the lowest known gas encountered in the Elk-4 well which is equivalent to 7,858 feet (2,395 meters) in Antelope-1.

The forward program is to drill ahead to total depth and test the well.

“We are extremely pleased with the early confirmation of gas and the gas flow results from the Antelope-1 well,” said Mr. Phil Mulacek, Chief Executive Officer. “The well continues to reflect our expectations for gas volumes in the Antelope field. What we have seen to date is expected to have a positive effect on the evaluation of gas volumes in the Antelope structure currently being conducted by independent experts.”