Interra Resources

Interra Resources: (The Edge) Big feature on The Edge. O&G player accelerating drilling and production operations in Myanmar as country reopens. For FY12, intends to drill a total of 16 wells, of which 10 will be in Myanmar. During the past 17 yrs, Interra has operated in Myanmar, it has drilled a total of only 24 wells, although its 2 oilfields has approx. 300 wells. Already this yr, grp has drilled into 3 wells in Myanmar and that have begun producing 75bpd, 25bpd and 100bpd respectively. Co very confident on Myanmar operations vs say 2 yrs ago. Grp recalled that it had scaled down its Myanmar operations in 2005-2008 due to problems collecting payments from MOG (Myanmar state O&G co), with some invoices going unpaid for as long as 2 yrs. Instead grp begun ramping up its operations in Indonesia. As at Dec 31, grp had proven oil reserves of 11.65m tons of which 14% were in Myanmar and the rest in Indo. Grp add that there are several ways to increase oil production in Myanmar fields. E.g via more pumps or using ‘Water Flooding’ Techniques to drain more oil from depleted wells. Co. had also previously found gas deposits in one of its wells, but just capped the well as there were no proper infrastructures to transport the gas. Eith major MNCs’ like Daewoo and CNPC, slowly tapping into Myanmar assets that could provide the co. with an added incentive to step up its exploration and production activities. Going forward, co. aims to increase Myanmar rev contributions to be split evenly with Indo. With Growing interest in Myanmar, banks are starting to approach grp, with deeper interests on grp’s operations and increasing grp’s fund raising options.