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IPB Petroleum Schedules Pryderi-1 Oil Well Spud

IPB Petroleum (ASX:IPB) should trade higher after the WA-424-P Joint Venture (IPB 75%; CalEnergy 25% and Operator) received notice from the rig contractor that the estimated commencement date for the Pryderi-1 rig contract is 17 October, 2014.

Subject to current operations at the Puffin field located 120 kilometres to the north, and based on the estimated mobilisation date, the Stena Clyde semi-submersible rig will arrive on location on or around the 19 October.

Pryderi-1 is a relatively shallow well and could intersect the target reservoir before the end of October. There will then be an additional 3 or 4 days of logging.

The Pryderi prospect is estimated by IPB to have High, Best and Low Prospective Resources of 78 MMbbls, 32 MMbbls, and 12 MMbbls respectively.

It lies in 75 metres of water, 10 kilometres away from the permit's existing Gwydion oil discovery. If IPB has success at Pryderi, the follow up potential across IPB's three permits is significant.

That IPB's farm-in partner CalEnergy Resources, is a subsidiary of MidAmerican Energy Holdings Company is also generating interest, as MidAmerican is 89% owned by Waren Buffett's Berkshire Hathaway.

CalEnergy has an option to increase their interest in the whole of WA-424 Permit to 60% within 3 months of drilling the Pryderi well by spending an additional $32.4 million, less the cost of drilling the Pryderi well.

IPB's assets have links to other big names also, as they neighbour Shell's Prelude field and the Woodside-operated Browse project.

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