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IPB Petroleum Gains 160 Million Barrels Of Prospective Oil Resource For WA-485-P Permit

IPB Petroleum (ASX:IPB) has had an extra 160 million barrels of prospective oil resource added to its key WA-485-P permit in Western Australia.

An independent review by ISIS Petroleum Consultants of the M.australis oil play in IPB's recently acquired WA-485-P permit has resulted in an increase to the Mean Prospective Resources (unrisked recoverable) by 160 MMbbls of oil, totaling 670 MMbbls.

IPB commissioned ISIS to perform an independent assessment of the resources attributable to the interpreted extension of the WA-424-P (IPB 75%, CalEnergy 25%) M.australis oil play into WA-485-P.

IPB's net share of Mean Prospective Resources (unrisked) associated with this play has increased by 66% from 241 MMbbls to 401 MMbbls of oil.

IPB's managing director, Brendan Brown said: "We are pleased with the results of the independent assessment of the Prospective Resources attributable to IPB's most recently acquired WA-485-P permit.

"It validates IPB's internal view of the prospectivity of our new permit, and positions the Company for increased potential upside in the event of success with our WA-424-P Joint Ventures upcoming Pryderi -1 well."

The upcoming Pryderi-1 well in WA-424-P (IPB 75%, Cal Energy 25%), aimed at testing the M.australis play, is scheduled for the third quarter of 2013.

Pryderi

The well in WA-424-P is expected to spud by mid-July, targeting a high-amplitude seismic response similar to that seen at the non-commercial Gwydion-1 oil discovery that was made by BHP Billiton (ASX: BHP) in 1995.

ISIS Petroleum Consultants estimates that there is a 75% chance of a hydrocarbon discovery at the Pryderi prospect.

Notably for IPB, the well is fully funded by farm-in partner CalEnergy, a fully-owned subsidiary of Berkshire Hathaway's MidAmerican Energy Holdings Company.

IPB's permits are located in one of the most prospective oil and gas basins in Australia. The last two years have seen in excess of A$40 billion of gas condensate development projects reaching final investment decision approval in the Browse Basin.

Notable fields located nearby are the Prelude gas field (2 trillion to 3 trillion cubic feet), where Shell (LON:RDSA) is developing the world's first floating liquefied natural gas project, and Inpex Corporation's giant Ichthys gas field (12.8Tcf) that will feed its 8.4 million tonne per annum LNG facility in Darwin.

The permits are also close to the undeveloped Cornea oil field.

Oil discoveries at Gwydion and Cornea confirm the oil potential of the southern margin of the Browse Basin and with three permits WA-424-P, WA-471-P and WA-485-P, IPB has established a major position from which to benefit from the potential success of the first well at Pryderi.

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