Interra Resources to sell stake in unit for US$13.5m

 

CHK 1173 was drilled to a total depth of 2,530 feet as an infill development well to producing oil wells CHK 1166 and CHK 1171, with the primary objective of accelerating production from reservoirs that produce in this fault block.

Following five days of production testing, CHK 1173 has been completed through casing perforations over eight reservoirs totalling 55 feet at 184 barrels of oil per day. CHK 1173 is the fifth well to be completed in this fault block in 2013 and as a group has had a significant positive impact on the Chauk field oil production. Several prospective shallower reservoirs will be tested later in this well or by shallow offset well.

CHK 1173 marks the nineteenth well to be completed as an oil producer in Myanmar in 2013.

 

YNG 3260 was drilled to a total depth of 5,317 feet in the producing Nyaung Do fault block located in southern Yenangyaung field. The primary objective of YNG 3260 was to produce oil which has not been produced by offset wells in this area of the Nyaung Do fault block. YNG 3260 has been completed at 5 barrels of oil per day through casing perforations over 20 feet in two reservoirs. The production will be monitored pending possible additional reservoir stimulation in the future. YNG 3260 marks the twentieth well to be completed as oil producer in Myanmar in 2013.

 

Interra Resources Limited (the " Company" or " Interra" ) wishes to inform shareholders that its jointly controlled entity, Goldpetrol Joint Operating Company Inc. (" Goldpetrol" ), has completed development well YNG 3258 in the Yenangyaung oil field in Myanmar as an oil producer.

Interra has a 60% interest in the Improved Petroleum Recovery Contract of the Yenangyaung field and also owns 60% of Goldpetrol which is the operator of the field. Since the well was drilled using Goldpetrol?s LTO 350 rig, costs were comparatively low. Interra?s share of the cost of drilling was funded from existing funds on hand.

YNG 3258 was drilled as a southeast offset to oil producing well YNG 3260 in the central portion of Yenangyaung field to a depth of 2,594 feet. The primary objective is to accelerate production from the oil reservoirs that produce from the several wells in this fault block. Following production testing, YNG 3258 has been completed at 60 barrels of oil per day through casing perforations over 40 feet covering six reservoirs.

YNG 3258 marks the eighteenth well to be completed as oil producer in Myanmar in 2013.

By Order of the Board of Directors of

INTERRA RESOURCES LIMITED

 

Interra Resources Limited (the " Company" or " Interra" ) wishes to inform shareholders that its jointly controlled entity, Goldpetrol Joint Operating Company Inc. (" Goldpetrol" ), has commenced drilling development well CHK 1173 in the Chauk oil field in Myanmar.

Interra has a 60% interest in the Improved Petroleum Recovery Contract of the Chauk field and also owns 60% of Goldpetrol which is the operator of the field. CHK 1173 is being drilled using Goldpetrol?s LTO 350 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.

CHK 1173 will be drilled to a targeted depth of 2,600 feet as an infill development well to CHK 1166 and CHK 1171, both of which were completed as oil producers this year. The primary objective is to accelerate production from the oil reservoirs that produce from these two wells and other 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 of the drilling operation as soon as they may be ascertained as well as updates reflecting critical or unexpected events during drilling.

By Order of the Board of Directors of

INTERRA RESOURCES LIMITED