Canada's InterOil Corporation has confirmed that its ongoing operations in Papau New Guinea have revealed a significant natural gas discovery.

According to a statement released by the firm, the finding was made at the Elk-4 discovery well, with initial testing pointing to a gas flow potential of around 63 million standard cubic feet per day and a condensate rate of up to 1,130 barrels per day.

This would make the well the second most productive in the Pacific nation, behind InterOil's Elk-1 discovery well and comes as the company works to develop a comprehensive oil business across Papau New Guinea, complete with a liquid natural gas refinery and retail and commercial distribution facilities.

The Elk-4 well results are strong and build upon the record flow rate established for Papua New Guinea by the Elk-1 well," noted Phil Mulacek, chairman and chief executive of InterOil

"A flow rate at 63 million scf per day is a great indicator of the deliverability of the reservoir and quality of the new discovery. The well is now being prepared for acid stimulation which we feel will further enhance its productivity."

Earlier this month InterOil announced that it may sell up to $200 million in debt securities and preferred shares over the coming months.

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