T-2 sucessfull
Take a look at mondays press release from InterOil. PRE just hit a HR and guess no one has realized it.
PORT MORESBY, Papua New Guinea and HOUSTON, Aug. 13, 2012 /CNW/ - InterOil Corporation (NYSE:IOC) (POMSoX:IOC) today announced financial and operating results for the second quarter ended June 30, 2012 and also certain recent developments.
Second Quarter 2012 Highlights and Recent Developments
- Today, InterOil announced confirmation of gas and an increased condensate ratio in an additional 131 feet (40 metres) of pay in the lower of two reservoir intervals based on cased hole testing in the Triceratops-2 well. InterOil believes that these test results along with the confirmation of gas in the upper limestone firmly establish the Triceratops structure as a significant discovery for PNG, InterOil, and its partners. Having tested only a small portion of a structure, InterOil, is looking forward to working with its partner Pacific Rubiales in integrating the new well and potential field data with the aim of designing a seismic data acquisition and six well delineation plan at the Triceratops structure.
- Net loss for the quarter ended June 30, 2012 was $31.7 million. The loss for the quarter includes a $23.8 million inventory write-down resulting from the decline in crude oil and related commodity prices during the period. Excluding the $23.8 million inventory write-down, operating segments of Corporate, Midstream Refining and Downstream collectively derived a net profit for the quarter of $7.5 million, while the investments in the development segments of Upstream and Midstream Liquefaction resulted in a net loss of $15.4 million.
- InterOil's Rig#2 was released from the Triceratops-2 well on August 13, 2012, and is being mobilized to the Antelope-3 drilling location and Rig#3 is readying for deployment to the Elk-3 drilling location. With access roads from both the north and the south and a central upstream development camp in place, InterOil is set to begin drilling two obligation wells in PRL 15. The Company's Tuna and Wahoo/Mako prospects targeting seismically defined reefal indications in PPLs 236 and 238 have matured to the drill ready stage and preparations are underway to access proposed drilling locations.
InterOil's Chief Executive Officer Phil Mulacek commented, "We welcome the pleasure to work with both returning and new ministers of the 9th Parliament of Papua New Guinea to bring an LNG processing facility to Papua New Guinea of a nature and in a manner which will be satisfactory to the State and to the mutual benefit of all stakeholders."
In regards to the ongoing LNG partnering process, Mr. Mulacek stated "With the sound backing of the new administration in PNG, we are continuing to work with our advisors to finalize selection of an LNG equity partner. The end result of the partnering process is expected to fully satisfy all the terms of the 2009 LNG Project Agreement."
As to the Triceratops-2 well, Mr. Mulacek noted that, "We are very encouraged by the results of the Triceratops-2 well, the third discovery well. We believe that the Triceratops-2 well is a significant resource discovery. We look forward to continuing to work with the very capable management and technical team of Pacific Rubiales as we delineate Triceratops and further explore
Business Segment Results as of June 30, 2012
Upstream - On April 30, 2012, InterOil signed a binding Heads of Agreement ("HOA") with Pacific Rubiales Energy Corp. ("PRE") for PRE to be able to earn a 10.0% net (12.9% gross) participating interest in the Petroleum Prospecting License ("PPL") 237 onshore Papua New Guinea, including the Triceratops structure located within that license. This farm-in transaction contemplates staged initial cash payments totaling $116.0 million, an additional carry of 25% of the costs of an agreed exploration work program, and a final resource payment. PRE have paid the initial $20 million of the staged cash payments. Subsequent to the quarter end, on July 27, 2012, we executed the farm-in agreement contemplated by the HOA with PRE relating to the Triceratops structure and the participating interest in the PPL 237 license. Completion of the farm-in transaction remains subject to satisfaction of additional conditions within 18 months, including execution of joint venture operating agreement with PRE, and PNG Government approval.
On May 14, 2012, we successfully conducted the Drill Stem Test ("DST") on the upper reservoir section in the Triceratops-2 well in Papua New Guinea which flowed gas and condensate to surface. DST#8 was conducted in the open hole interval from 4,111 feet (1,253 meters) to 4,859 (1,481 meters) and the well was opened to increasing choke settings before being closed for final buildup. As of May 14, 2012, the well flowed natural gas and condensate at a rate of 17.6 million standard cubic feet of gas per day (MMSCFPD) through a 48/64 inch choke with an observed condensate to gas ratio ("CGR") at separator conditions of between 13.6 and 16.3 barrels per million standard cubic feet of gas (mmscf). At our Annual General Meeting on June 15, 2012, the Company announced the results of DST#9 also conducted on the upper section of the reservoir which flowed at 28 mmscf per day.
Subsequent to the quarter, InterOil completed casing the Triceratops-2 well bore, perforating the casing and testing the lower of two separate sections of the reservoir. DST#10 conducted over a large perforated interval tested gas condensate and formation water. DST#10A, which was conducted over a narrower perforated interval from 5,150.9 feet (1,570 meters) to 5,325 feet (1623 meters), flowed up to 3 mmscf and between 45 and 65 barrels of condensate per million cubic feet through perforations establishing, and with production log data indicating, a gas water contact at 5285 feet (1,611 meters).
Well results support our view that the Triceratops-2 well is on the flank of a shallow marine carbonate and reefal build up. Management believes the reservoir development in Triceratops-2 is significantly better than the Triceratops-1, Bwata-1, and the Elk-4 well, which is in a similar setting on the Antelope reef. It is the Company's view that the results of testing at Triceratops-2 have established gas on rock in the upper limestone and established gas and a separate gas water contact in the lower limestone and established a gross hydrocarbon column height of 814 feet (248 meters) in the Triceratops-2 well. Importantly the gas pressures from both units lie on the same gradient as each other and the Bwata-1 well and indicate a gross gas column height of 1,762 feet (537 meter) in the field.
Our current interpretation of the 87 miles (140 kilometers) of seismic data over the Triceratops structure indicates an enormous attic in terms of height and areal extent to the south, west and northwest of the Triceratops-2 well. Management believes the test results firmly establish the Triceratops structure as a significant discovery for InterOil, its partners and PNG. Having tested only a small portion of a structure, InterOil is looking forward to working with its partner Pacific Rubiales in integrating the new well and potential field data with the aim of designing a seismic data acquisition and six well delineation plan.
InterOil's Upstream business realized a net loss of $15.5 million in the second quarter of 2012 compared to a loss of $6.7 million in the comparable period a year ago. The increase in the loss in 2012 was mainly due to higher interest expense due to an increase in inter-company loan balances, higher exploration costs related to increased seismic data acquisition activity, an increase on office and administration expenses and a decrease in non-allocated revenue.