InterOil continues $300M PNG drilling campaign

INTEROIL has begun drilling its third well as part of a $US300 million ($A324 million) oil and gas exploration campaign in Papua New Guinea.
InterOil continues $300M PNG drilling campaign 
InterOil continues $300M PNG drilling campaign 
InterOil continues $300M PNG drilling campaign 
InterOil continues $300M PNG drilling campaign 
InterOil continues $300M PNG drilling campaign

The company kicked off drilling at the Raptor-1 site, marking InterOil's third exploration well in PNG since the beginning of March.

Raptor is about 20km southwest of Wabo in the Gulf Province and will be drilled to a total depth of 4500m.

The other two exploration wells begun this month are Bobcat-1 about 20km north of Raptor-1 and Wahoo-1, which is near the coast about 180km southeast of Raptor-1.

InterOil said it expected to drill up to five additional exploration and appraisal wells in PNG in the coming 12-15 months, across almost 4 million acres in the south of the country.

Meanwhile, the company confirmed it had received notification from Oil Search of a dispute under the joint venture operating agreement relating to the Elk-Antelope petroleum retention licence 15 in PNG.

"We will be responding in accordance with the terms of that agreement," the company said in a statement.

"Any proceedings commenced by Oil Search seeking to set aside the transaction completed with Total SA on March 26, 2014, in which Total acquired a 40.1% (gross) interest in PRL 15, will be strongly defended."

Oil Search released a statement to the market advising it had issued a notice of dispute to InterOil.

"The dispute relates to the transaction announced by InterOil on 26 March 2014 whereby SPI (208) Limited purports to have assigned an interest in the Elk/Antelope project area PRL 15 to Total Holdings International BV," Oil Search managing director Peter Botten said.

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