Exploration and Production

InterOil's exploration acreage portfolio is located in the Eastern Papuan Basin northwest of Port Moresby and is one of the largest held by a single company and comprises petroleum licenses covering about 3.9 million acres. We currently have three onshore exploration licenses in Papua New Guinea, namely; Petroleum Prospecting Licenses (PPLs) 236, 237 and 238. These licenses are controlled and operated by InterOil and our current exploration efforts are focused within these three licenses. The Elk/Antelope gas/condensate field is located primarily on PPL 238.
 

Petroleum Prospecting License 236 (On shore)

We have a 100% working interest in PPL 236, subject to elections made by holders of indirect participation interests. This license covers an area that includes our refinery and it has limited road access. We believe that the proximity of this license area to Port Moresby would reduce the costs of developing any future oil or gas discoveries.

Petroleum Prospecting License 237 (On shore)

We have a 100% working interest in PPL 237, subject to elections made by holders of indirect participation interests. In 2006, we carried out an airborne gravity/magnetic survey consisting of 2,471 miles over the western and southern parts of this license. In 2007, 28 miles (44 kilometres) of the 144 mile (230 kilometres) Elk appraisal 2D seismic program were acquired over PPL 237. In 2009, the Antelope-2 appraisal well was confirmed as another highly successful gas and condensate appraisal discovery. The Antelope-2 flowed at a calculated absolute open flow rate of 705 million cubic feet of natural gas per day (MMCFD) including 11,200 barrels of condensate per day (BCPD) for a total 129,000 barrels of oil equivalent per day (BOEPD). The Antelope field extends through PPL 237 and PPL 238.

Petroleum Prospecting License 238 (On shore)

We have a 97.5% working interest in PPL 238, subject to elections made by holders of indirect participation interests described above. We have drilled a total of eight wells on this license of which Elk-1, Elk-4A and Antelope-1 and Antelope-2 have been gas/condensate discovery wells. On March 2, 2009 a short term surface flow test of Antelope-1 was conducted resulting in an estimated 382 MMCFD of gas and associated condensate of approximately 5,000 BCPD. This well encountered a dolomitized reef and penetrated approximately 2,000 feet of reservoir with matrix porosity averaging around 8%.