Acquisition to trigger Siberian drilling

International Petroleum Ltd., Perth, has acquired an indirect 75% equity interest in Russian company Irtysh-Neft, which holds four onshore exploration permits in the Khanty-Mansiisk oil producing region of western Siberia.

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Oct. 21 -- International Petroleum Ltd., Perth, has acquired an indirect 75% equity interest in Russian company Irtysh-Neft, which holds four onshore exploration permits in the Khanty-Mansiisk oil producing region of western Siberia.

International will pay $5 million and be obliged to fund the current work program, which includes the drilling of two wells by June 2012 and two additional wells by the end of 2012.

International will operate the program through its wholly owned subsidiary IPL Siberia Ltd.

The total licensed area of the permits is 1,467 sq km. It has extensive 2D seismic coverage.

Consultant Ryder Scott estimates potential resources at 169-395 million bbl of recoverable oil.

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