Interra Resources Limited announced that it has carried out fracture stimulation and testing of exploration well KP-1 on the Kuala Pambuang block (the "Block") onshore southern Central Kalimantan, Indonesia. Interra has a 72.75% interest in the Block through PT Mentari Pambuang Internasional, the operator of the 1,631 km2 Block. The perforation and fracture stimulation were sub-optimal due to communication with an overlying aquifer zone and, as such, the test results are inconclusive and below pre-drill expectation.

The well has now been temporarily suspended to allow for the recovered oil samples to be analysed and interpretation to be carried out. KP-1 was drilled to a total measured depth of 3,771 ft in December 2019. The well targeted a four-way dip closure within the Berai Formation on the PR-1 prospect.

Skim oil was recovered to surface during open hole swabbing of the original well. The carrying value of the exploration cost with respect to the Block to-date is approximately USD 13.7 million against the net present value based on an independent review of USD 9 million, resulting in an impairment on exploration cost of approximately USD 4.7 million.