InterOil to commission massive gas finds: The Sunday Chronicle

By TERENI KENS

Phil Mulacek, Chairman and Chief-
Executive Officer of Canada's InterOil
Corp and Prime Minister, Sir Michael
Somare at Antelope-1 last year.

INTEROIL is expected to commission what it describes as another massive natural gas find at its Antelope-1 exploratory well in the Gulf Province tomorrow.

This follows the company's recent discovery of what is apparently the largest vertical section of continuous reservoir of gas and gas liquids ever discovered in Papua New Guinea.

The valves which were opened by Prime Minister Sir Michael Somare last year, Elk-4-2.8 km north of Antelope-1 -broke a national record by flowing 105 million cubic feet per day, and also producing 2000 barrels of clear kerosene-rich condensate. Its roaring gas flare raised sweat on witnesses several hundred metres away.

Sir Michael will again ceremonially flow and flare the well and will be witnessed by various international and PNG media personnel that would travel into Antelope tomorrow morning.

The company's Senior Manager Media Relations, Susuve Laumaea also commented as saying the "discovery is considered -- on the basis of independent expert analysis -- to be the biggest natural gas find of the century anywhere in the Southern Hemisphere or Asia-Pacific (nothing as massive as this one has ever been found in our immediate region over the last 20 years or so.)"

According InterOil, porosity averages more than 8.4 percent across the entire interval, with some sections exceeding 20 percent.

The cumulative net or productive reservoir has a net to gross ratio of 90 percent.
In simple terms the figures indicate the existence of an extremely large quantity of gas that is expected to be technically able to be effectively harvested.
This discovery adds to those already made at InterOil's Elk-Antelope prospecting site.

Previous test results from the Elk-1 and Elk-4 sites have shown the existence of what appears to be a major gas reservoir of "potentially substantial deliverability".

It is expected that gas from the Elk-Antelope structures would feed the proposed Liquid Niugini Gas project (of which InterOil is a foundation partner) should it proceed.