Petromin buys into Elk/Antelope gas field

PORT MORESBY: Petromin Holdings Limited has bought a direct interest in InterOil’s Elk/Antelope gas field in the Gulf Province.

The government-owned entity has made initial cash payment as part of its continuing plan to fund 20.5% of the costs of developing the field.

InterOil Executive Vice President Christian Vinson described the Petromin buy-in as an important milestone in the development of the gas field.

“We hold very high hopes for Elk/Antelope, based on testing we have undertaken in recent months”.

“We believe the discovery has the potential to make a major contribution to the future economic development of the nation”, he said.

“On this basis we are delighted to have Petromin aboard”.

Recent testing has shown the Elk-4 site has a gas flow rate of 105 million cubic feet per day.

It is greatest flow rate from any exploratory gas well in PNG history.

Estimates show Elk-4 having a condensate rate of 1,890 barrels per day.

“The flow rate is a great indicator of the potential deliverability of the reservoir”.

“It gives a strong indication as to the quality and quantity of the Elk/Antelope discovery”, Mr. Vinson said.

InterOil is currently drilling the Antelope -1 exploration well.

It is intended gas from this field would feed the proposed Liquid Niugini Gas Project, of which InterOil is a foundation partner.

The multi-billion Kina development project would bring a wide range of economic benefits to the nation.

The initial phase would see a pipeline constructed from the Gulf Province to Port Moresby where a gas processing plant would be constructed near the InterOil refinery.

For further information please contact

Susuve Laumaea

Senior Manager Media Relations InterOil Corporation

Ph: 321 7040

Mobile: + (675) 684 5168

Email: susuve.laumaea@interoil.com