InterOil Corporation has commenced at the Elk-1 exploration well. The Elk well is located in Petroleum Prospecting License 238 and is targeting the Miocene Puri fractured limestone and the Eocene Mendi limestone. The Elk-1 well is being drilled into a culmination identified by airborne gravity and confirmed by a 74 mile (119 kilometer) 2D seismic survey concluded in August 2005.
InterOil plans to drill the well to a measured depth of approximately 10,000 feet (3,000 meters). Drilling to the target depth and logging the well is expected to take between 70 and 90 days. The well will be drilled vertically and will attempt to intersect the Puri limestone near its crest at approximately 4,000 feet (1,200 meters).
The Company’s new rig, InterOil Rig #2, is being used to drill the Elk-1 well. The Elk-1 well will be the third well in InterOil’s eight well drilling program relating to its US$125 million drilling fund for exploration purposes announced early 2005.
