massive drill target no 2

  1. 3,800 Posts.
    Watch this stock......

    IOC are currently drilling the first well of its 8 well program. The Moose prospect - target 400 million barrels. But dont seem to be reporting regularly....

    Check out target No 2 below - a billion barrels.......

    If you see this stock running hard on success at Moose, may not be such a bad one to jump on board with your play money.............??

    I dont hold

    acturtle

    INTEROIL CORPORATION 2003-04-15 ASX-SIGNAL-G

    HOMEX - Sydney

    +++++++++++++++++++++++++
    InterOil Corporation (IOL: TSX-V) (IOC: ASX/POMSoX), a Canadian
    company with corporate headquarters in The Woodlands, TX announced
    today that in accordance with the listing rules of the Toronto
    Venture Exchange it has released additional technical details of its
    Rhino Prospect. This release is to satisfy regulations and to ensure
    that all exchanges are kept informed of the same information. The
    information may be viewed on the InterOil website at
    www.interoil.com. The Rhino Prospect, with an estimated mean
    recoverable resource potential of 1,000 million barrels, is a
    prospect in InterOil's previously announced 8-well drilling program
    in Papua New Guinea.

    InterOil is focused on Papua New Guinea and the surrounding region,
    and is developing an integrated energy business consisting of an oil
    refinery, petroleum exploration, and retail assets. The majority of
    product from the refinery is secured by contracts valued by InterOil
    at approximately US$1.4 billion with Shell Overseas Holdings Ltd. BP
    Singapore is the exclusive agent for all crude oil supplied to the
    refinery. In addition to the refinery and retail assets, InterOil has
    recently announced the largest exploration program by a single
    company in Papua New Guinea history.

    InterOil's common sharesare traded in Canada in Canadian dollars on
    the TSX Venture Exchange under the symbol IOL, and on the Australian
    Stock Exchange, "ASX" in CHESS Depositary Interests "CDI", in
    Australian dollars under the symbol IOC, traded on a 10:1 basis to
    common shares. InterOil Corporation shares also trade on the Port
    Moresby Stock Exchange in Papua New Guinea in the local currency
    (KINA) under the symbol IOC. For more information please see the
    InterOil website at: www.interoil.com.

    INTEROIL CORPORATION 2003-04-15 ASX-SIGNAL-G

    HOMEX - Sydney

    +++++++++++++++++++++++++
    SUPPLEMENTARY FILING - RHINO PROSPECT

    THIS DISCLOSURE IS NOT BASED ON A NP 2-B REPORT AND IS BASED ON
    INTEROIL'S MANAGEMENT DUE DILIGENCE AND INTERNAL REPORTS. THERE ARE
    NO RESERVE ESTIMATES AS PER NP 2-B RESERVE DEFINITIONS.

    The Rhino Prospect has been identified as a prospect to be drilled by
    InterOil inPPL 238 in Papua New Guinea. Since PPL 238 was awarded in
    March 2003 InterOil has spudded Moose-1 which is currently drilling.
    InterOil has 100% Working Interest subject to farmin and Government
    dilution.

    The nearest wells include 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 (from well report and other papers). The
    nearest commercial production is the South East Gobe field
    approximately 200 km to the northwest.

    The potential field size is calculated using a deterministic
    computation. The input parameters are based on the Subu stratigraphic
    well core data and regional data. The most significant parameters
    are:

    * Area - structural modeling 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 (60%)

    Third party technicalstudies 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 of core from
    Subu-1 and -2. CSIRO identified three sources for hydrocarbons in the
    Subu core that are early to peak mature for oil. The resource
    estimate assumes the structure is full of oil (rather than gas or gas
    cap) to the spill point.

    Third partyengineering development feasibility studies by Universal
    ENSCO Inc have generated costs that were used in a Net Present Value
    economic model generated by ANZ Infrastructure Services. This model
    indicates that with capital expenditures of US$30 million or less and
    a crude sale price of US$22 per barrel, recoverable reserves of 5-7
    million bbls would be economic.

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

    Section 4.8 - Disclosure Concerning Prospects

    ITEM INTEROIL RESPONSE

    (a) the location and basin name; PPL 238 in the Eastern Papuan
    Basin, Papua New Guinea

    (b) the distance to the nearest
    analogous commercialproduction; Gobe fields are approximately
    200 km (125 miles) from
    Prospect

    (c) the drilling commencement and
    completion dates; Scheduled for May-June, 2003

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

    (e) the depth of the target zone; 1500-2000 m

    (f) the estimated cost to drill
    and test a well to the target depth; About US$1,400,000 on a dry
    hole basis

    (g) the range of pool of field
    sizes and the probability of
    success and risks; Pre-drill resource estimate
    approximately 1,000 million
    bbls, based on prospect
    parameters described below.
    Foldbelt Trend to the NW
    Probability of Success ("POS")
    is about 1 in 4, but there is
    insufficient nearby data to
    give a POS for this well. The
    largest oilfield in PNG is
    Kutubu (2P reserves 338
    million barrels - The 2P
    ultimate recoverable reserves,
    of which 268 million barrels
    have been produced, was
    provided in the PNG DPE Annual
    Report and Oil Search Annual
    Report, in 2001. Oil Search is
    a company publicly listed on
    the Australian Stock
    Exchange.)

    (h) the product type reasonably Light (42 deg API) sweet crude
    expected; oil and associated gas

    (i) the reporting issuer's gross
    and net interest, expressed in
    acres, and its gross and net
    interest in any production or
    reserves; InterOil's gross interest
    is 100% in the 4.2 million
    acres within PPL238. After PNG
    Government dilution,
    InterOil's net interest may be
    reduced to 77.5%. Farmin
    participation will further
    dilute InterOil's effective
    interest.

    (j) the identity and relevant
    experience of the operator;
    Operator is SPI(208) Limited,
    a wholly owned subsidiary of
    InterOil Corporation, that has
    Operated since 1999, has
    drilled 2 stratigraphic
    wells, and is currently
    drilling Moose-1.

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

    (l) the price environment. Light sweet crude oil in Asia
    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 PPL238. 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 value of 13% has been used in
    volumetric calculations for sandstone.

    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.

    CARBONATE RESERVOIRS

    TheEocene limestone represents a secondary target in PPL 238. 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 isopach 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 value of 30% recovery is a conservative estimate, given the
    historical recovery factor of 60% of initial oil in place for Kutubu
    Field to the west of PPL238 (Fitzmorris, 1996, Aziz-Yarand and
    Livingston (1996). and PetroVal Australia 2002).

    RECOVERY FACTOR FOR OIL

    A value of 30% recovery is a conservative estimate, given the
    historical recovery factor of 60% of initial oil in place for Kutubu
    Field to the west of PPL238 (Fitzmorris, 1996, Aziz-Yarand and
    Livingston (1996), and PetroVal Australia 2002).

    OIL SATURATION

    For Oil Saturation a value of 85% (or water saturation of 15%) is
    used. These is a representative figures and correlates 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,

    "Towards Development - the Long History of Petroleum Exploration in
    PNG" by Frank Rickwood, Oil Search Limited, 1990 PNG Conference
    Proceedings "The well flowed significant quantities of oil (1610
    bopd)"

    Department of Petroleum and Energy, 2000 Annual Report on Petroleum
    Activity in Papua New Guinea; Exploration Branch December 2000

    Andy Carroll,
    General Manager, E & P
    Inter0il Corporation


 
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