InterOil contracts rig for Sterling Mustang prospect in Papua New Guinea

By OGJ editors

HOUSTON, Sept. 25 -- Toronto-based InterOil Corp. has accelerated its drilling program in an extensive oil exploration program on Papua New Guinea and the surrounding region. The company contracted Simmons Rig #3, a heliportable, conventional oil field rig that currently is being mobilized to commence drilling on Sterling Mustang prospect in October.

It also is negotiating to contract other rigs by yearend to drill exploration wells on other prospective structures and appraisal and development wells as needed.

Testing and appraisal drilling on the Moose structure secondary target—168 m of limestone—is expected to follow completion of current drilling and coring activities. This follows 14 oil shows in the limestone section. InterOil is preparing two separate drill sites for the first appraisal wells on Moose to delineate the extent of the potentially productive limestone.

InterOil also is developing an oil refinery and retail assets (OGJ Online, Sept. 2, 2003). BP Singapore Pty. Ltd. will supply all crude oil to the refinery, and Shell Overseas Holdings Ltd. will receive most of the refinery's product.