InterOil Corporation reported that the Triceratops-2 well in Papua New Guinea was drilled from the 9 5/8 casing shoe at 4,111 feet (1,253 meters) to current total depth (TD) of 5,971 feet (1,820 meters). The top marl transition zone was encountered at 3,976 feet (1,212 meters) and the top of the carbonate reservoir at 4,482 feet (1,366 meters). Since penetrating the carbonate reservoir to the current TD, background gas and persistent mud losses of between 5 to 40 barrels per hour have been encountered. Delivery of drill stem testing ("DST") equipment has been delayed and InterOil has elected to continue drilling towards an expected total targeted depth of 7,546 feet (2,300 meters) to expedite logging the well. The Company plans to conduct a DST once the wireline logging program has been completed.

"We believe that the initial indications from the mud log demonstrate a permeable and porous reservoir," stated Mr. Phil Mulacek, Chief Executive Officer of InterOil. "We are pleased to find that our aero-magnetic and gravity data utilized in combination with modern seismic data has provided a useful exploration tool to explore for potential reefal reservoirs in our license areas in Papua New Guinea."

Tags: InterOil Corporation