After floating between the $1.22 and $1.80 mark for the past six months the 90% boost came after well reports showed more than 14 oil shows in 135m of continuous core from the well. The company now believes that the limestone structure drilled in the Moose-1 ST indicates further potential for a commercial resource.

InterOil has already initiated cash calls from its indirect participation partners, PNG Energy Investors LLC and PNG Drilling Ventures Ltd, for the work program to test and complete the limestone section of the Moose-1 ST.

The program will include logging and flow testing of the limestone section to begin within the next three weeks.

InterOil's said the analysis is based on preliminary data only and additional testing, production and development drilling will be required to determine the structure's resource potential.

"The initiation of the testing program on the first of a 16 well exploration program in PNG is an exciting step, which will allow us to better quantify the potential of the Moose structure and of other structures in our multiwell exploration program," said Andy Carroll, InterOil's general manager of exploration and production.

InterOil is focused on Papua New Guinea and the surrounding region, and is developing an integrated energy business consisting of an oil refinery, petroleum exploration, and retail assets.