Testing operations have confirmed the need for artificial lift (pump) to flow the Moose-1 structure. InterOil then decided that the fastest and most economic means of determining the Moose structure's potential was to suspend operations on the Moose ST1 and move on to drill and test the Moose-2 exploration/appraisal well.

Moose-2 will target the Late Cretaceous Pale sandstone, located below 1,100m, with a secondary appraisal target of Eocene limestone, previously identified in the Moose ST-1, between approximately 600 and 800m.

The well will also be used to appraise the previously identified limestone target where multiple oil shows were encountered in the Moose ST-1 4.5km away.

InterOil will use an increased mix of air and foam to drill through the limestone target zone having learnt from the lesson of Moose-1. Sterling Mustang is scheduled to be spudded in the next two weeks, logistics permitting.

To date Moose-1 has cost the company around $US4 to drill despite its protracted drilling time and the success of the well has prompted InterOil to expand its planned drilling program to 16 wells, on separate and independent structures in the Eastern Papuan Basin.