excellent disclosure - moose prospect

  1. 3,800 Posts.
    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)



    --------------------------------------------------------------------------------

    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




 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.