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)
+++++++++++++++++++++++++ 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