InterOil Corporation (NYSE: IOC) (POMSoX: IOC) has notified the Papua New Guinea Department of Petroleum and Energy of a discovery at the Bobcat-1 exploration well in PPL476.

The well was tested over an interval of about 320 meters of Kapau limestone, the upper section of the target reservoir, and flowed and flared hydrocarbons at surface.

Seismic mapping, wireline logging and testing results indicate the well is close to the gas-water contact in the transition zone.

Recently acquired seismic indicates the crest of the structure lies several kilometers west of the current well location and is several hundred meters higher than the current well depth.

Following these results, InterOil has notified the department that it has declared a total depth for the exploration well at 3,207 meters.

Future appraisal will include additional seismic and drilling. As the first part of the appraisal program, the company now intends to deepen the well to appraise reservoir quality.

Bobcat-1 is about 30km north-west of Elk-Antelope. InterOil holds a 78.1114% interest in the well and is operator. The remaining 21.8886% interest is held by minority interests.