Interra Resources clinches breakthrough production rate in Indonesian well

Possibly best initial rate in company's history.

According to Interra Resources Limited, its wholly owned subsidiary, Goldwater TMT Pte. Ltd. (“GTMT”) has achieved a milestone for both the Company and TMT field following production testing.

"Following casing perforation in one of the prospective sandstone reservoirs, very high flow rates have been observed during production testing over the last five days. The Company has been running tests on TMT-53 and it has been closely monitoring the performance of the well during this period," the company said.

The new well achieved a controlled flow rate of 1,422 barrels of oil over the last twenty-four hours. The Company will be conducting futher tests with the aim of maintaining optimum production levels from the new well. The Company will continue to monitor the new well closely and further information will be announced when these become available.

TMT-53 is one of four new wells drilled since the Company completed the acquisition and interpretation of 3D seismic data. TMT-53 was drilled in one of numerous quality drillable prospects that have been identified by the Company. In addition to identifying “customary” prospects, new locations have also been located on anomalies developed from seismic based technical reservoir and deposition models. TMT-53 was drilled in one of these new locations that have been identified.

"Based on current production tests, TMT-53 may have the best initial production rate in the Company’s history. The Company’s proposal to drill an additional four wells in TMT in 2013 has been approved by Pertamina," it said.

Investors are advised though to exercise due care and caution when trading Interra's shares. It is not certain that the testing results mentioned above will ultimately yield commercially recoverable hydrocarbons or profitable production.