excellent disclosure - moose prospect

I dont hold IOC, but wouldnt it be fantastic if all oil companies could release information like this for each well that gets drilled........ That would be called servicing the investing community instead of treating us purely as sources of capital.

acturtle


Supplementary Filing - Moose Prospect

Announced by: INTEROIL CORPORATION (IOC)
Announced on: 12/12/2002 09:28:21
Part: A
Words: 1191
Status: Not market sensitive (N)



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INTEROIL CORPORATION 2002-12-11 ASX-SIGNAL-G

HOMEX - Sydney

+++++++++++++++++++++++++
The Moose prospect has been identified as the first prospect to be
drilled by InterOil in PPL 230 in Papua New Guinea. There has been no
drilling in this permit since it was awarded in January 2002.
InterOil has 100% Working Interest that can be diluted to 77.5% if
the Government elects to exercise a right to take a 22.5% interest
after paying its share of qualifying costs.

The PPL 230 licence area covers the Subu stratigraphic wells drilled
by InterOil in August 2001, and the Puri-1 well drilled in 1957-9
that flowed 1610 bopd on test. The nearest commercial production is
the South East Gobe field approximately 200 km to the northwest.

The range of potential field size is calculated using a computer
software program ("Crystal Ball") that takes a range of inputs and
delivers a probabilistic range of reserves. InterOil has chosen to
quote the "mean" or average result.

The range of parameters is based on the Subu stratigraphic well core
data and regional data. The most significant parameters are

* Area - structural modelling based on field mapping

* Net Pay - based on nearby Subu cores and regional data

* Porosity - from Subu core data and regional data

* Recovery Factor - conservative estimate compared to PNG data

Third party technical studies have been performed by an Australian
Government entity, the Petroleum Division of CSIRO (Commonwealth
Science and Industry Research Organisation). They reported on the
porosity, sedimentation and hydrocarbon properties. CSIRO identified
four sources in the Subu core that are early to peak mature for oil.
The reserve estimate assumes the structure is full of oil to the
spill point.

Third party engineering development feasibility studies by Universal
ENSCO Inc have generated costs that were used in an economic model
generated by ANZ Infrastructure Services. This model indicates that
5-7 million bbls would be economic.

The geologist that prepared the pre-drill estimate is Mr Dave
Holland (BSc Hons, Sydney), an experienced PNG geologist who has been
employed on a contract basis by InterOil. The work has been checked
by Mr Andy Carroll (BA, MA, Cambridge) an engineer belonging to the
Society of Petroleum Engineers.

SECTION 4. 8 - DISCLOSURE CONCERNING PROSPECTS

ITEM INTEROIL RESPONSE

(a) the location and basin name; PPL 230 in the Eastern Papuan Basin,
Papua New Guinea

(b) the distance to the nearest Gobe fields are less than 150 km
analogous commercial (90 miles) from Prospect
production;

(c) the drilling commencement Scheduled for February-March, 2003
and completion dates;

(d) the name, geologic age Primary Target - Late Cretaceous
and lithology of the Pale and Subu marine quartz
target zone; sandstones.
Secondary Target - Eocene limestone

(e) the depth of the target zone; 1500 m

(f) the estimated cost to drill About US$1,000,000 on a dry hole
and test a well to the basis
target depth;

(g) the range of pool of field Mean estimate approximately 350
sizes and the probability million bbls; Trend Probability of
of success and risks; Success is about 1 in 4

(h) the product type reasonably Light sweet crude oil and
expected; associated gas

(i) the reporting issuer's gross InterOil's gross interest is 100%
and net interest, expressed in the 4.2 million acres within
in acres, and its gross and PPL230, after PNG Government
net interest in any dilution, InterOil's net interest
production or reserves; may be reduced to 77.5%

(j) the identity and relevant Operator is SPI(208) Limited, a
experience of the operator; wholly owned subsidiary of InterOil
Corporation, that has Operated
since 1999 and has drilled 2
stratigraphic wells

(k) expected marketing and Barge and/or pipeline to InterOil
transportation arrangements; refinery currently under
construction in Port Moresby, the
Capital of PNG.

(l) the price environment. Light sweet crude oil sells for
about the WTI price.

PARAMETERS USED IN VOLUMETRIC CALCULATIONS

PALE AND SUBU SANDSTONES

The Pale and Subu Sandstones represent the primary reservoir target
within central northern PPL230. The only penetration is in two
stratigraphic core holes drilled in 2001 at the Aure Scarp. Reservoir
Parameters used in this Lead and Prospect Assessment are based on the
results obtained from the Subu 1 and 2 core analysis (Barclay, 2002)
and a review of regional correlative units.

POROSITY

The recorded core porosity ranges up to 16% porosity and 1700md
permeability (Barclay, 2002). A mean of 13% has been used in
volumetric calculations. The 10% lower limit is a nominal cut-off.
The higher value of 20% accounts for the high porosity sands that
were not able to be tested as they were friable.

NET PAY

In the Subu cores an estimated 266m true stratigraphic thickness of
quartz arenite sandstone was encountered. The preliminary results of
a petrographic study and porosity and permeability analysis of the
sandstone indicate an approximate 60% net/gross for the unit. This
suggests approximately 160 metres of net pay in the Subu cores
rounded down to 150 metres in the volumetric calculations.

Regional correlatives of the Pale Sandstone including the Ekmai
Sandstone in Irian Jaya suggest the stratigraphic thickness (TST) of
these Campanian Quartz Sandstones can exceed 400m. An effective
maximum figure used is 350m, based on a 366m intersection of the
Ekmai Sandstone in Cross Catalina 1 in Eastern Irian Jaya (Mason and
McConachie, 2000). Where it is observed the Campanian sandstones have
not had a TST of less than 50 metres and this is used as the
practical minimum in the volumetric calculations.

CARBONATE RESERVOIRS

The Eocene limestone represents the most attractive target in PPL230.
The thickness of the limestone units varies (40 m at Puri to 900 m at
the Aure Scarp) regionally and the thickness of the limestone used in
volumetric calculations is based on regional isopac maps. The
reservoir properties used in the calculations are those used by the
previous operator (Carman, 1990) and are considered reasonable and
conservative.

RECOVERY FACTOR FOR OIL

A median Figure of 30% recovery with a minimum of 20% and a maximum
of 45% are conservative estimates given the historical recovery
factor of 60% of initial oil in place for Kutubu Field to the west of
PPL230 (Fitzmorris, 1996, Aziz-Yarand and Livingston (1996) and
PetroVal Australia 2002).

OIL SATURATION

For Oil Saturation a median figure of 85% (or water saturation of
15%) is used with a minimum of 80% and a maximum of 88%. These are
representative figures and correlate well with the log derived water
saturations for the Toro Reservoir in the Kutubu Field (Aziz-Yarand
and Livingston (1996).

REFERENCES:

Mason and McConachie, 2000, Cross Catalina Anticline: An Oil
Accumulation in the New Guinea Fold Belt in Proceedings of the 4th
PNG Petroleum Convention,

Barclay and Pickle, 2001, CSIRO Technical Report on the Pale
sandstone

Aziz-Yarand and Livingston 1996. In Proceedings of the 3rd PNG
Petroleum Convention,

PetroVal Australia, 2002 in Information Memorandum - for Merger
between Orogen Minerals and Oil Search Limited).

Fitzmorris, 1996, In Proceedings of the 3rd PNG Petroleum Convention,

Submitted By:

Andy Carroll,
GENERAL MANAGER, EXPLORATION & PRODUCTION
InterOil Corporation