InterOil’s PNG drilling program (VIDEO)

December 5, 2014

InterOil updated on its exploration drilling program in Papua New Guinea, with an accompanying video overviewing the exploration sites.

RAPTOR-1, PPL475

The company flared gas and condensate from the Raptor-1 well test. Raptor is only 12km west of Antelope and the deepest well drilled into the Kapau limestone reservoir, encountered at 3,800 meters. On November 14, 2014, the company notified the Department of Petroleum and Energy of a discovery at Raptor-1.

Results from the testing program, including pressure measurements, support the presence of a multi-hundred meter hydrocarbon column in excess of the 200 meter gross gas interval already encountered by the well. Logs indicate a highly fractured reservoir system and mud loss during drilling supports the likely connectivity of the fracture network.

The well is currently being suspended to allow comprehensive planning of future Raptor appraisal work, which will include additional seismic, appraisal drilling and a comprehensive testing program. This is planned for 2015.

The rig is being mobilized to spud Antelope-5.

InterOil holds a 65.208174% interest in Raptor-1 and is operator. Pacific Rubiales Energy has a 12.903226% interest in the well and minority interests hold 21.8886%.

BOBCAT-1, PPL476

Bobcat-1 has completed logging a 320 meter interval of Kapau limestone with initial indications of hydrocarbons. The well is currently undergoing testing.

Bobcat-1 is about 30km north-west of Elk-Antelope.

InterOil holds a 78.1114% interest in the well and is operator. The remaining 21.8886% interest is held by minority interests.

WAHOO-1, PPL474

On July 14, 2014, the company suspended the Wahoo-1 well following significant safety concerns over high pressures in the well. Significant concentrations of methane, ethane, propane and butane were recorded and were believed to be entering the well bore from permeable zones above the predicted reservoir zone, which is yet to be penetrated.

The company is continuing to review and survey all options at Wahoo including well designs, mud weights and mud types. Drilling is expected to resume in 2015.

InterOil holds a 78.1114% interest in the well and is operator. The remaining 21.8886% interest is held by minority interests.

The company is now firmly into its appraisal program at Elk-Antelope and Triceratops. Antelope-4 appraisal drilling continues and Antelope-5 will spud when the rig move from Raptor-1 is complete. Antelope-4 and Antelope-5 well costs are carried by Total SA, with InterOil having a net commitment of $4.6 million for the first $50 million gross expenditure on each well. Site preparation for Triceratops-3 is underway and is expected to spud in 2015.