Interra

Interra - Latest industry news flow is that Myanmar on Wednesday launched an auction of 30 offshore oil and gas exploration blocks expected to draw fierce competition from foreign giants hoping for a share of an energy bonanza. Successful bidders will be granted full rights to up to three of 19 deepwater blocks on offer, the energy ministry said on its website, a first for a sector once closely controlled by the corrupt former junta. Firms have previously been required to partner with state oil companies for onshore blocks, but due to the high cost and technical skills required, bidders must take full control for deepwater exploration. Bidders will, however, be required to enter into a production sharing contract with the state-owned Myanma Oil and Gas Enterprise (MOGE), it said without providing further details. We note that while Interra will not be among the bidders, the grp will be a beneficiary of increase Capex in the O&G sector in Myanmar, which could facilitaites the transporation of O&G, recalling that the house had previously capped some Wells, despite positive gas content, due largely to the inability and lack of infrastuctures to transport the gas to the required facilities. Seperately, few days back, Interra annouced that it has completed its second producing well in a Myanmar oil field and has begun drilling on the third. The YNG 3251 well in the Yenangyaung field now produces a stable 96 barrels of oil per day by pump. Interra has begun digging a new well, YNG 3252. This one will be drilled to a depth of 3,150 feet, with completion estimated in six wks.