Interra reports S. Sumatra oil production and exploration

The following is an edited excerpt from SGX-listed firm Interra Resources Limited on Indonesian exploration and production activity, taken from quarterly report ended 31 December 2008 published on Friday.

Tanjung Miring Timur TAC, onshore South Sumatra (Interra 70%)

During Q4 2008, gross production was 71,105 barrels of oil, an increase of almost 15% compared to the previous quarter. Less mechanical difficulties were experienced as compared to the previous quarter.

The first well of a 3 well development program was spud during the quarter. Progress drilling the well has been slow due to mechanical breakdowns. Preparations for the remaining 2 wells have been completed and these wells will be drilled back to back after the current well is completed.

Plans to undertake a 3D seismic survey of the field have been temporarily suspended in light of current market conditions. Gas powered engines which power the lifting units are gradually being introduced into the field. These engines will use the associated gas which is currently flared and will replace the existing diesel powered engines. This initiative is expected to reduce the field?s ongoing operating costs.

Production and development costs for the period were US$1,590,115 and US$363,920 respectively. (end of excerpt)