The company said it could not establish the commerciality of the PNG discovery at this early stage but initial gas chromatograph and mass spectrometer results from CSIRO indicate a light natural crude oil of marine origin.
InterOil is considering either flow testing, and/or electric wireline logging, but looking forward, the sidetrack drilling will continue to the primary targets, the Pale and Subu sandstones.
Onsite mud-logging contractors Baker Hughes Inteq confirmed the presence of hydrocarbons and further testing will be done by CSIRO on hydrocarbon analysis and age dating.
"The presence of live oil is the evidence that we needed to confirm our view that the Eocene is a prospective oil zone in Papua New Guinea, and demonstrates the Puri-1 oil flow was not an isolated anomaly," said Andy Carroll, InterOil's General Manager of Exploration and Production.
"Specifically, these cores demonstrate reservoir, seal, structure/trap and oil at Moose. The demonstration of oil generation, migration, and preservation upgrades the nearby leads and prospects within our multi-well drilling program."
