Well suspended due to higher-than-expected pressures
SINGAPORE and PORT MORESBY, Papua New
Guinea, July 14, 2014 /CNW/ - InterOil Corporation
(NYSE, POMSox: IOC) has suspended the Wahoo-1 well in PPL474 in
Papua New
Guinea after intersecting gas and
higher-than-expected pressures that could compromise rig
safety.
Significant concentrations of methane, ethane, propane and
butane have been recorded and are believed to be entering the well
bore from permeable zones above the predicted reservoir zone, which
is yet to be penetrated.
The gas is characteristic of thermogenic hydrocarbons, which are
indicative of an active hydrocarbon-generating source rock.
The Wahoo-1 well was designed for high pressures based on data
from other wells in the region but the pressures have exceeded by
nearly 50% even those of InterOil's Antelope discovery, 170km to
the north-west.
After a review by drilling and engineering teams and expert
advisers, InterOil has concluded that drilling ahead would pose an
unacceptable safety risk to people and the rig.
The company has received approval from the PNG Department of
Petroleum and Energy to suspend the well.
Operations to resume as soon as practicable
InterOil intends to resume operations as soon as practicable
following a detailed review of well engineering, equipment and
options, when the company is satisfied it is safe to proceed, and
after the regulator has approved the company's plans.
An option includes testing of the gas-bearing permeable zones
encountered in the Orubadi mudstone.
Progress on Wahoo-1 has confirmed an effective seal in the
Orubadi mudstone, as well as the presence of thermogenic
hydrocarbons, both of which are key components to a working
petroleum system.
Further drilling is required to confirm the presence of a
reservoir below the current total depth of the well before Wahoo
can be considered a discovery.
About InterOil
InterOil Corporation is an independent oil and gas business
with a primary focus on Papua New Guinea. InterOil's assets
include one of Asia's largest undeveloped gas fields,
Elk-Antelope, in the Gulf Province, and exploration licences
covering about 16,000sqkm. The company employs more than 2000 staff
and contractors and has its main offices in Singapore and
Port
Moresby. InterOil is listed on the New York and
Port
Moresby stock exchanges.
Investor
contacts
|
|
Singapore
David Wu
Vice President,
Investor Relations
David.Wu@InterOil.com
Phone: +65 6507
0222
|
United
States
Meg
LaSalle
Investor Relations
Coordinator
Meg.LaSalle@InterOil.com
Phone: +1 281 292
1800
|
Media
contacts
|
|
Singapore
Rob
Millhouse
Vice President,
Corporate Affairs
Robert.Millhouse@InterOil.com
Phone: +65 8112
5694
|
Australia
John Hurst
Cannings Corporate
Communications
jhurst@cannings.net.au
Phone: +61 418 708
663
|
Forward-looking statements
This media release includes "forward-looking statements" as
defined in United States federal and Canadian
securities laws. All statements, other than statements of
historical facts, included in this release that address activities,
events or developments that InterOil expects, believes or
anticipates will or may occur are forward-looking statements
including, in particular, references to plans for Wahoo-1. These
statements are based on our current beliefs as well as assumptions
made by, and information currently available to us. No assurances
can be given however, that these events will occur. Actual results
could differ, and the difference may be material and adverse to the
company and its shareholders. Such statements are subject to
several assumptions, risks and uncertainties, many of which are
beyond the company's control, which may cause our actual results to
differ materially from those implied or expressed by the
forward-looking statements. Some of these factors include risks
discussed in the company's filings with the Securities and Exchange
Commission and on SEDAR, including but not limited to those in the
company's annual report for the year ended 31 December 2013 on
Form 40-F and its Annual Information Form for the year ended
31 December
2013. In particular, Papua New
Guinea has no established market for natural gas or
gas condensate and no guarantee that gas or gas condensate from the
Elk and Antelope fields will ultimately be extracted and sold
commercially. Investors are urged to consider closely disclosure in
the company's Form 40-F, available at www.interoil.com or from the
SEC at www.sec.gov and InterOil's Annual Information Form,
available on SEDAR at www.sedar.com.
SOURCE InterOil Corporation