Sterling Mustang #1 is the first well to be drilled on the Sterling Mustang structure, located in Petroleum Prospect Licence 238, in Papua New Guinea and is the second structure to be drilled in the extended exploration program on independent structures in the Eastern Papuan Basin, the Moose wells being the first.

The well will target the Pale sandstone, forecast at approximately 2,200 metres with a secondary appraisal target of Mendi limestone above the Pale sandstone.

Two wells are currently being drilled, the Moose #2 exploration / appraisal well and Sterling Mustang #1. InterOil is currently using two rigs to execute its multi-well exploration program.

Moose-2 has recently revealed oil shows in core samples with cut and fluorescence indicating two separate oils. Correlation between the Moose-1 and 2 geologies and oil shows indicates that the limestone with oil shows extends between the two in the Moose structure.

The future program is now to drill, core and /or log the limestone to further define the potential of this secondary target.

InterOil is also nearing completion of its 32,500 barrel per day oil refinery in Papua New Guinea. The project is now over 84% complete, with engineering 99.5% complete, procurement 100% complete, and construction 70% complete and with pre-commissioning and commissioning works just commencing.