On This Day · 20 years ago

Elk-1: a test result worth remembering

Twenty years ago today, Upstream reported encouraging results from InterOil’s Elk-1 gas discovery in Papua New Guinea: a gas flow of 21.7 million cubic feet per day, accompanied by condensate.[1] The Elk-1 well later flowed at a record rate of 102 million cubic feet of gas per day, placing it as the highest gas well flow rate in Papua New Guinea’s history.[6]

20

Years ago


Anniversary · 25 October 2026 Remembering the report of 25 October 2006 Elk-1 · Papua New Guinea

The report The road to Elk-1 Its place in the story What followed Sources

21.7

million cubic feet of gas per day

Reported test flow[1] [5]

46° API

condensate gravity

As reported on 25 October[1]

Elk-1

PPL 238 · Eastern Papua Basin

Exploration well[4]

01 / THE REPORT

A promising result from Elk-1

The 25 October report described gas flowing through a small choke from a highly permeable, fractured reservoir, with condensate measuring 46° API. InterOil was preparing the well for a long-term production completion, then expected to take another two to three weeks.[1]

Elk-1 Flow Test - Close up of gas jet. Gulf Province, Papua New Guinea

“We are very encouraged by these early test results”

Phil Mulacek, then InterOil’s chief executive
Quoted by Upstream, 25 October 2006.[1]

An original historical summary of the published report, not a reproduction of the publisher’s article. Read the contemporary report ↗

A note about the anniversary

This page remembers the report published on 25 October 2006. The October testing occurred earlier: a GLJ assessment records a sample collected during DST #2 on 10 October, and the same maximum flow result appeared in Oil & Gas Journal on 20 October. The available records do not establish the exact day of the maximum flow step.[1] [2] [5]

02 / THE CHRONOLOGY

The road to that October headline

Behind that October headline lay an exploration license, seismic surveys, a new rig and months of demanding well operations. This is the story that led to the report.

7 March 2003

The exploration ground is secured

PPL 238, the license containing Elk-1, is granted to InterOil.[3]

2004

Seismic work investigates the prospects

InterOil completes seismic work across the Puri, Elk and Moose prospects.[3]

25 February 2005

Funding backs an eight-well programme

An amended participation agreement provides US$125 million for eight exploration wells in Papua New Guinea.[3]

October 2005

A rig built for the task

InterOil acquires its purpose-built, helicopter-portable Rig #2, capable of drilling to 13,500 feet.[4]

19 February 2006

Elk-1 begins drilling

The well is spudded in the Eastern Papua Basin, targeting fractured limestone on the Elk structure.[4]

May 2006

A parallel gas-development ambition

InterOil signs a memorandum of understanding with Papua New Guinea’s government concerning domestic natural-gas processing, ahead of a definitive project agreement.[4]

11 June 2006

High-pressure gas changes the programme

Gas is encountered at 5,543 feet. The well is shut in while additional well-control equipment is mobilised.[3]

June 2006

The first drill-stem test

The first test flowed gas at a rate of 7.1 million cubic feet per day. A subsequent, deeper test significantly surpassed this milestone, recording a maximum flow rate of 21.7 million cubic feet per day.[2]

15 September 2006

Drilling resumes

After well-control work and rig reconfiguration, drilling resumes using managed-pressure drilling.[3]

7 October 2006

The well reaches total depth

InterOil’s annual filing records total depth at 6,504 feet.[3]

10 October 2006

A dated record from the second test

A later GLJ technical report identifies a gas sample collected during Elk-1’s second drill-stem test on this date.[5]

20 October 2006

The October result is already in print

Oil & Gas Journal reports a maximum gas rate of 21.7 million cubic feet per day from the second test.[2]

25 October 2006

This anniversary

The report remembered today

Upstream publishes its account of Elk-1’s encouraging test results. This is the publication anniversary marked by this page.[1] Elk-1 was later tested and flowed at a record rate of 102 million cubic feet of gas per day and 510 barrels of condensate a day. [6]

Dates are shown only as precisely as the cited record supports. A month-only entry does not imply a verified day within that month.

03 / THE INTEROIL STORY

Why this moment matters

Seen in the wider InterOil story, Elk-1 belongs to the period when a business with refining and fuel-distribution operations was pursuing the scale of its upstream opportunity. By 2006, its refinery was operating and the company was also exploring a future in natural-gas processing.[4]

The importance of the October result was therefore not simply the number in the headline. It gave the exploration story a tangible point of reference: a tested well, followed by completion and appraisal. Later technical assessment placed Elk-1 at over 102 million standard cubic feet of gas per day, creating the beginning of the Elk discovery and the wider Elk–Antelope exploration story.[3] [4] [5]

Those were encouraging test results, not a declaration that commercial production had begun. The distinction matters: testing a well, estimating a resource and establishing commercial reserves are different milestones. InterOil’s later filing still described the need for further drilling and development before proved reserves could be assigned.[4]

Remembering the people behind the record

The numbers tell only part of the Elk-1 story. Behind it were the people who drilled, tested and supported the well.

Phil Mulacek and some of the team near the Hevilift Jet Ranger. Gulf Province, Papua New Guinea

Reading the numbers

The headline rate is a test result, not a forecast of sustained field production. Subsequent appraisal and development were separate stages.[4] The 21.7 million standard cubic feet per day was a drill stem test rate; a later flow test reached 102 million cubic feet per day.[6]

From the archive

This post draws on Upstream’s report on 25 October 2006, later InterOil filings and a third-party technical assessment.

The historical record

Sources & further reading

1

Elk-1 test shows promise

Upstream · 2006-10-25. Published 25 October 2006, 03:39 GMT.

2

More work set at Papuan gas-condensate find

Oil & Gas Journal · 2006-10-20. Article dated 20 October 2006; paragraphs describing DST 1 and DST 2.

3

Annual Information Form — year ended 31 December 2006

InterOil Corporation / SEC EDGAR. Printed pp. 10, 15–16, 40 and 42: 2004 history; PPL 238; 2006 exploration; material contracts.

4

Annual Information Form — year ended 31 December 2007

InterOil Corporation / SEC EDGAR · 2008-03-28. Printed pp. 10–12: upstream history, refinery and liquefaction.

5

Elk / Antelope resource assessment — effective 31 December 2009

GLJ Petroleum Consultants (archived copy on Scribd). Executive summary; Initial Reservoir Conditions and Fluid Properties, printed p. 28 (immediately before the p. 29 marker in the text extraction).

Third-party-hosted archival copy of the GLJ report.

6

InterOil’s gas well blasts record

Hart Energy · States that Elk-1 tested in 2006 at 102 million cubic feet of gas and 510 barrels of condensate per day.

Historical research prepared 11 October 2026. This retrospective distinguishes operational dates from report dates and avoids treating a test rate as proved reserves or sustained production. No historical photograph has been substituted from another well. External archive links may require a subscription or sign-in.