IPR Executes CEOP for Tranquilo Block in Chile

In a signing ceremony on April 30, 2008, in Punta Arenas attended by President Michelle Bachelet, Chile, IPR, joined by its Swiss-based partner, Manas Petroleum Corporation, executed the Special Operating Contract for the Exploration and Exploitation of Hydrocarbon Deposits (CEOP) for the onshore Tranquilo Block in the Magallanes Basin of the Chilean Antarctic region.

The block is the largest among the 10 exploration blocks awarded (6,760 square kilometers) by the Ministerio de Mineria in the 2007 bid round. The contract is comprised of three exploration periods of 3, 2 and 2 years, respectively, and a production period of 25 years. A minimum exploration investment of US $33.2 million has been committed over the seven year exploration phase of the contract.

The three-year initial exploration phase will commence within the next two months with the acquisition of 2D/3D seismic data and drilling of six exploration wells with an exploration commitment by the IPR-Manas consortium of approximately US $14.36 million. South America is now the fourth continent of international E&P operations by IPR supporting its aggressive plan of expansion worldwide.