Interra Resources Limited (the Company or Interra) reported Tuesday that its jointly controlled entity, Goldpetrol Joint Operating Company Inc. (Goldpetrol), has commenced drilling development well YNG 3261 in the Yenangyaung oil field in Myanmar.
Interra has a 60 percent interest in the Improved Petroleum Recovery Contract of the Yenangyaung field and also owns 60 percent of Goldpetrol which is the operator of the field. YNG 3261 is being drilled using Goldpetrol’s ZJ 450 rig, thus drilling costs are expected to be relatively low. Interra’s share of the cost of drilling will be funded from existing funds on hand.
YNG 3261 is drilled as an up-dip offset to oil producing well YNG 3253, which was completed in June this year, in the central portion of the Yenangyaung field. The well is to be drilled to a targeted depth of 3,400 feet with the primary objective of accelerating production from the oil reservoirs that produce from the several wells in this fault block.
Interra estimates that the results of the drilling and completion should be available in approximately six weeks. The Company will announce the results as soon as they may be ascertained as well as updates reflecting critical or unexpected events during drilling.