InterOil (IOC) responded to scepticism about the value of its new Antelope 1 and Antelope 2 gas finds in Papua New Guinea by releasing the full details of a site assessment conducted by an energy consulting firm, as well as the results of recent flow tests.This is a smart move by the company. Nothing sets concerns to rest faster than acting as though there is nothing to hide. The consulting firm that conducted the evaluation, GLJ, clearly believes in the value of InterOil’s latest sites.
Now the question is whether the gas can be extracted at a cost that makes sense. (Extraction involves building a massive plant that some sceptics still believe is not justified by the resource in question).
The next key events for the company will be:
- The results of a horizontal drilling test that was originally supposed to be concluded in May and is now due in late April
- Additional news on the signing of a joint-venture partner. Several companies in Japan and India have been reported to be in talks with InterOil about this, but no partnerships have been signed.
Below, we’ve included this morning’s press release and presentation.
InterOil Releases Full Resources Evaluation and Well Flow Test Information in an Updated Presentation at the IPAA Investor Conference in New York
CAIRNS, Australia and HOUSTON, April 14 /PRNewswire-FirstCall/ — InterOil Corporation (NYSE: IOC) (POMSoX: IOC) announced today that the full report of the independent engineering evaluation prepared by GLJ Petroleum Consultants Ltd. (GLJ Report), who evaluated the contingent resources of the Elk and Antelope fields in Papua New Guinea effective as at December 31, 2009, as well as the presentation that is to be delivered by Mr. Phil Mulacek, Chief Executive Officer, and Mr. Wayne Andrews, V.P. Capital Markets at the Independent Petroleum Association of America’s 2010 Oil & Gas Investment Symposium on April 14, 2010, have been posted on InterOil’s website: www.interoil.com.
The GLJ Report was prepared in accordance with the definitions and guidelines in the COGE Handbook and National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (NI 51-101) adopted by Canadian Securities Administrators.
InterOil has included in its presentation technical information on the flow tests from both the Antelope-1 and Antelope-2 wells conducted on March 2 and December 1, 2009 respectively. The presentation also includes a summary of the results, in addition to total gas volumes recovered during the tests, total production time over the entire test periods, and the flowing pressures and rates at each choke size.
Phil Mulacek stated, “We are pleased with the high quality analysis conducted by GLJ, a top ranked independent engineering firm based in Calgary, Canada. For its qualified independent resource report, GLJ used all the information available through December 31, 2009. This included information such as wireline log data (Schlumberger), test data (Weatherford International), seismic and laboratory data (routine and special core data/pressure volume temperature (PVT) analysis).”
The Independent Petroleum Association of America’s 2010 Oil & Gas Investment Symposium is being held at The Sheraton New York Hotel & Towers in New York City, New York, on April 14, 2010 at 08:45 a.m. (Eastern)/07:45 a.m. (Central). A link to the audio only live webcast presentation is available on InterOil’s website: www.interoil.com. Following the conference, a live replay will be available on the InterOil website.
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