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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