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.
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
