Interra Resources reported Monday that its jointly controlled entity, Goldpetrol Joint Operating Company Inc. (Goldpetrol), has commenced drilling development well YNG 3268 in the Yenangyaung oil field in Myanmar. Interra has a 60 percent interest in the Improved Petroleum Recovery Contract of the Yenangyaung field and also owns 60 percent of Goldpetrol which is the operator of the field. 

YNG 3268 is being drilled using Goldpetrol’s ZJ 450 rig, thus drilling costs are expected to be relatively low. Interra’s share of the cost of drilling is funded from existing funds on hand. YNG 3268 is drilled in south-central Yenangyaung field as an up-dip offset to producing oil wells, 4 of which have been completed over the last 8 months and a fifth is currently undergoing testing. The nearest of these had an initial production of 176 barrels of oil per day. 

YNG 3268 will be drilled to a targeted depth of 4,000 feet with the primary objective of accelerating production from the oil reservoirs that produce from wells in this fault block. Interra estimates that the results of the drilling and completion should be available in approximately 6 weeks. The Company will announce the results as soon as they may be ascertained as well as updates reflecting critical or unexpected events during drilling. Separately, Interra appointed Han Liqiang, 41, as regional operations manager with responsibility for the company's petroleum exploration and production operations. 

Li worked for as BGP Inc., a geophysical company, since 2003. Prior to joining Interra, he was deputy general manager of BGP MultiClient in China from September 2013 to January 2014, general manager of BGP Southeast Asia (January 2009-August 2013) and deputy country manager of BGP Saudi Arabia (October 2003-December 2008).