InterOil Well Confirms Extent Of Reservoir

HOUSTON (AP) — Shares of InterOil Corp. jumped on Wednesday, following news that tests at its Antelope-2 well in Papua New Guinea flowed natural gas and condensate, and confirmed that the size of the natural gas reservoir is much larger than originally estimated.

Interoil shares climbed $4.38, or 9.7 percent, to $49.70 in afternoon trading.

The Australian oil company tested natural gas and condensate at a rate of 14.1 million cubic feet of gas per day with 16.5 barrels of condensate per million cubic feet.

Last month, the company reported that drilling at the well hit the top of the its natural gas reservoir 345 feet higher than expected, leading the company to believe that they could have a more sizable reservoir. Phil Mulacek, InterOil's CEO, said that the testing confirmed that the reservoir is bigger than expected.

Adding to the litany of good news, InterOil said the sampling of the area indicates high porosity in the reefal reservoir, which provides easier access to the gas and condensate.