InterOil Corporation Elk-4 Well Drilling Report No. 9

Tag : Gas Flow Valves

Currently preparing to complete Elk-4 as a gas and condensateproducer. Additional testing across the total open hole intervalwill commence, following the setting of a 4 1/2 inch productionstring.
DST#3 was performed over the open hole interval from 7,632 feet(2,326 meters) to 7,815 feet (2,382 meters). The preliminary testwas limited to gas and formation water as the packer and test toolswere lost in the lower section of the hole.
The well was sidetracked around the stuck packers and drilled to7,628 feet (2,325 meters), and DST#4 was performed.
DST#4 was successfully performed from 7,546 feet (2,300 meters) to7,628 feet (2,325 meters) to isolate and test a matrix porosityzone identified on the logs to determine the condensate volumesover the zone. A rate of 18 bbls/mmcf of condensate was produced.This represents a 13 bbls/mmcf increase in condensate over theElk-1 well.
((i)note: previous wells drilled in the area have experiencedbackground gas, however background gas in no way confirmscommercial accumulations of hydrocarbons reached to date on thiswell, until the well is drilled out and testing and logging iscompleted. The structure may need further geological, geophysicaland appraisal work before a commercial confirmation of gasreserves.) There is no assurance that any such reserves will beestablished.)
This press release may include "forward-looking statements" asdefined in United States federal and Canadian securities laws. Allstatements, other than statements of historical facts, included inthis press release that address activities, events or developmentsthat the Company expects, believes or anticipates will or may occurin the future are forward-looking statements. These statements arebased on certain assumptions made by the Company based on itsexperience and perception of historical trends, current conditions,expected future developments and other factors it believes areappropriate in the circumstances. Such statements are subject to anumber of assumptions, risks and uncertainties, many of which arebeyond the control of the Company, which may cause our actualresults to differ materially from those implied or expressed by theforward-looking statements.
We currently have no reserves as defined in Canadian NationalInstrument 51-101 Standards of Disclosure for Oil and GasActivities. All information contained herein regarding resourcesare references to undiscovered resources under Canadian NationalInstrument 51-101, whether stated or not.