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IPB Petroleum's Shares Step On The Gas As Browse Basin Spud Date Nears

Australian conventional oil explorer IPB Petroleum (ASX: IPB) is a stock on the rise, with the company climbing 21.6% this week based on Thursday's closing price of $0.31.

Investors are eagerly awaiting the spudding of its first well in the Browse Basin of Western Australia.

Volume in IPB's shares on Thursday passed the one million traded mark in a day barrier since the company listed, with 1.9 million shares changing hands on the day.

In total IPB has a strategic 14,000 square kilometre position in the Browse Basin,

Notably for the company, the Pryderi oil prospect will be fully funded by farm-in partner CalEnergy , a fully-owned subsidiary of Berkshire Hathaway's MidAmerican Energy Holdings Company.

Known as Pryderi-1 oil exploration well WA-424-P, it is estimated to spud in the December quarter 2013, and is 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.

Pryderi has estimated Mean Prospective Resources of 40 million barrels of oil.

The Pryderi prospect is around 5 kilometres away from Gwydion-1, which encountered a 14.5 metre gas column in poor quality glauconitic sand above a 10 metre oil column in good quality clean sand.

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.

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