IPB Gets Approval to Extend and Vary WA-485-P Work Program in Browse Basin

IPB Petroleum disclosed Tuesday that the Company’s application for a 12 month Suspension, Extension and Variation to the WA-485-P exploration permit work program offshore Western Australia has been approved by the Commonwealth–Western Australia Joint Authority.

Following IPB’s application in mid May, the Company has been granted a 12 month Suspension and Variation to the permit Year 2, and corresponding Extension to subsequent permit years’ work programs for its 100 percent held WA-485-P exploration permit (Permit).

The current work program now provides a further 12 months for IPB to commence the acquisition of a new 3D seismic survey, now 347 square miles (900 square kilometers) versus a previous 236 square miles (610 square kilometers) as part of the Year 2 Permit activites. Also as a result of the Extension of subsequent years’ work programs, IPB now has additional time to satisfy future commitments including the Permit Year 3 exploration wells which must now commence before May 13, 2017. The optional Permit Secondary Term now commences on May 14, 2017.

The revised remaining permit work program for the WA-485-P permit is as follows:

• Primary Term: Year 2 (Current - May 13, 2016)
  • Minimum Work Requirements: 347 square miles (900 square kilometers) New 3D Seismic Survey, Estimated Expenditure: $5.8 million (AUD 7.5 million)
• Primary Term: Year 3 (May 14, 2016 - May 13, 2017)
  • Minimum Work Requirements: Geological & Geophysical Studies, Estimated Expenditure: $193,450 (AUD 250,000); 2 Exploration Wells, Estimated Expenditure: $18.6 million (AUD 24 million)
• Secondary Term: Year 4 (May 14, 2017 - May 13, 2018)
  • Minimum Work Requirements: Geological & Geophysical Studies, Estimated Expenditure: $ 193,450 (AUD 250,000); 193 square miles (500 square kilometers) New 3D Seismic Survey, Estimated Expenditure: $5.4 million (AUD 7 million)
• Secondary Term: Year 5 (May 14, 2018 - May 13, 2019)
  • Minimum Work Requirements: Geological & Geophysical Studies, Estimated Expenditure: $193,450 (AUD 250,000); 1 Exploration Well, Estimated Expenditure: $9.3 million (AUD 12 million)
• Secondary Term: Year 6 (May 14, 2019 - May 13, 2020)
  • Minimum Work Requirements: Geological & Geophysical Studies, Estimated Expenditure: $193,450 (AUD 250,000)

IPB’s Managing Director Brendan Brown commented, “These revised terms allow increased time to complete future permit work program, and based on the Company’s studies to-date, better reflects the level of technical work necessary for this important exploration permit.”

About IPB Petroleum

IPB Petroleum is an Australian conventional oil exploration company that has built a strategic position in what it believes to be a potential new oil fairway along the south margin of the Browse Basin offshore North West Australia.