Interra Resources Limited announced that its jointly controlled entity, Goldpetrol Joint Operating Company Inc. (Goldpetrol), has commenced drilling development well CHK 1177 in the Chauk oil field in Myanmar. Interra has a 60 percent interest in the Improved Petroleum Recovery Contract of the Chauk field and also owns 60 percent of Goldpetrol which is the operator of the field.
CHK 1177 is being drilled by using Goldpetrol’s ZJ 450 rig, thus drilling costs are expected to be relatively low. Interra’s share of the cost of drilling will be funded from existing funds on hand. CHK 1177 will be drilled to a targeted depth of 3,300 feet as an infill development well and a southern offset to CHK 1171, which was completed as an oil producer in August 2013 at an initial rate of 125 barrels of oil per day. The primary objective is to accelerate production from the oil reservoirs that produce from the wells in this fault block.