Total cash consideration for the rig and an inventory of drilling and oil field service equipment, currently located in New Zealand, is approximately $4.5m.
The new rig is capable of drilling to 16,500 vertical feet and of drilling longer horizontal sections than the company’s current rig. The added depth capacity of this rig, in addition to the top drive system, is expected to add flexibility and efficiency to the company’s drilling operations.
InterOil said that the additional rig is not only suitable for development of the Elk/Antelope field, but also adds depth capacity and well design versatility to its exploration program.
The company anticipates moving the rig to PNG in Q2, 2010, following completion of the transaction and refurbishment of tubular and other rotating equipment.
Phil Mulacek, chairman and CEO of InterOil, said: “We are very satisfied with the acquisition of the InterOil’s second rig which is outstanding in terms of design and capabilities and is particularly well suited for operations in the area in which our development and exploration activities are being conducted.”
