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The Moose-1 well is the first well to be spudded in an eight well program and will target the Late Cretaceous Pale and Subu Sands at 1500-2000m with a secondary target of Eocene limestone at 1,100m.
InterOil said the well will be drilled utilising slim hole drilling technology and should take 30 days to reach target depth.
InterOil has used the start of its drilling campaign to also announce it has entered into an agreement with the parent company of the drilling contractor to help fund the drilling campaign.
Under terms of the agreement, InterOil will issue 31,240 shares at $C13.75 to General Exploration Drill Holding (GEDH) for part of the payment of drilling rig and design services. The total transaction value of the deal, which will be subject to four-month hold period, is $C429,550 or $US293,654.
Despite the announcements, InterOil is down 2c to be trading at $1.48.
