Interra- cheapest oil stock

 

INTERRA RESOURCES LIMITED UEN 197300166Z ARBN 129 575 275 SGX ANNOUNCEMENT SGX Code: Interra Res (5GI)

Interra Resources Limited 1 Grange Road #05-04 Orchard Building Singapore 239693 Tel (65) 6732 1711 Fax (65) 6738 1170 www.interraresources.com

14 March 2013

INDONESIA DRILLING UPDATE:

DRILLING COMMENCEMENT OF

LINDA SELE DEVELOPMENT WELL SLE S2

Interra Resources Limited (the "

SLE S2 is the second well to be drilled in LS and the first in the Sele field portion of the TAC since the completion of 3D seismic data acquisition and interpretation over the blocks. SLE S2 is being drilled using an externally contracted rig.

SLE S2 is being drilled as a north offset to producing well SLE S1 which was completed in 1975 and has produced in excess of 400,000 barrels of oil. The proposed depth is 725 metres and the primary objectives are the reservoirs of the Kais Formation with secondary objectives being several shallower reservoirs.

Detailed interpretation of the 3D seismic data has allowed for a much clearer understanding of the LS carbonate reef complex and consequently several additional highly prospective locations have been delineated.

Interra estimates that the results of the drilling should be available in approximately eight 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.

The Company wishes to advise that investors should exercise due care and caution when trading Interra’s shares. It is not certain that the development drilling mentioned above will ultimately yield commercially recoverable hydrocarbons or profitable production.

By Order of the Board of Directors of

INTERRA RESOURCES LIMITED

Marcel Tjia

Chief Executive Officer Company" or " Interra" ) wishes to inform shareholders that its wholly owned subsidiary, Goldwater LS Pte. Ltd. (" GLS" ), has commenced drilling development well SLE S2 at the Linda Sele (" LS" ) fields onshore West Papua, Indonesia. GLS has 100% participating interest in the LS Technical Assistance Contract (" TAC" ) and is the operator of the fields.

About Interra

Interra Resources Limited, a Singapore-incorporated company listed on SGX Mainboard, is engaged in the business of oil and gas exploration and production (E& P). Our E& P activities include oil and gas production, field development and exploration through strategic alliances and partnerships. We are positioning ourselves to become a leading regional independent producer of oil and gas.

Interra Resources: Post 4Q12 Net Loss Of US$0.05 Million Vs 4Q11 Net Profit Of US$6.8 Million.

Q4 2012 net loss after tax for the quarter was US$0.05 million. Net profit after tax for the year was US$3.04 million. Revenue for the quarter was US$7.23 million, 8% lower than the previous quarter, mainly due to lower barrels of oil lifting from LS TAC. Revenue for the year was US$30.41 million. Shareable production for the quarter increased to 93,328 barrels from 90,802 barrels in the previous quarter. Earnings before divestment gain, interest income, exchange difference, finance cost, tax, depreciation, amortisation, allowance and impairment for the quarter was US$2.68 million. Net cash outflow for the quarter was US$9.66 million, mainly due to new well drilling and well improvements and acquisition of property, plant and equipment. Cash and cash equivalents, excluding restricted cash, were US$16.74 million as at 31 December 2012...

DEVELOPMENT WELL TMT-55



 

Further to the announcement of 03 January 2013 with respect to furnishing



 

production testing results of TMT-55 at the Tanjung Miring Timur (“TMT”) field in

South Sumatra, Indonesia, Interra Resources Limited (the “Company” or “Interra”)

 

 

wishes to inform shareholders that the wholly owned subsidiary, Goldwater TMT Pte.



 

Ltd. (“GTMT”) will complete the well as an oil producer. Two of the lower reservoirs

 

 

are currently under pump testing following casing perforation and have reached an

average of 55 barrels of oil per day. The tests in these lower zones are ongoing with

the aim of optimizing production.

The Company will announce the final results from these tests as well as future plans



for testing shallower reservoirs as soon as they may be ascertained.