International Petroleum Limited, an oil and gas exploration company with assets in Russia and Kazakhstan, is pleased to update the market on the completion of an acquisition and the revision of the terms of a disposal.
Acquisition of the Druzhny Project – Western Siberia, Russia
On 4 November 2011, the Company entered into a Share Purchase and Funding Agreement (“Druzhny Agreement”) to acquire 75% of the issued share capital of Charlize Investments Limited.
Charlize owns 100% of the issued share capital of OOO VostokNefteGaz. VNG owns an exploration licence in the Tomsk region of Western Siberia (the “Tomsk Exploration Licence” or the “Druzhny Project”).
In consideration for the Charlize Acquisition, the Company agreed to:
(a) issue 6,666,667 Shares to the seller of the interest in Charlize; and
(b) fund all of the exploration work necessary to fulfil the minimum work programme as stipulated in the Tomsk Exploration Licence.
On 9 November 2011, at the Company’s General Meeting, shareholder approval was obtained for the allotment and issue of the Charlize Consideration Shares in part consideration for the Charlize Acquisition. Following the issue of the Charlize Consideration during December 2011, the Charlize Acquisition has now completed and the Company is the operator of VNG and the Druzhny Project.
If deposits are discovered, the Company intends to carry out an operational estimate of hydrocarbon reserves and file the estimate for Russian state expert evaluation not later than six months after the production well test date.
The Company plans to meet the requirements of the minimum work programme by carrying out at least 1,000 line km of 2D seismic survey during the winter of 2011/12.
The Charlize Consideration Shares will be subject to escrow until the earlier of:
(a) a commercial discovery having been made in the Tomsk Exploration Licence;
(b) VNG having acquired an oil-producing asset in the Tomsk region of Russia; or
(c) a period of five years from the date of settlement of the Charlize Acquisition.
Commenting on completion of an acquisition and the revision of the terms of a disposal, Chris Hopkinson, International Petroleum CEO said, “We are pleased to complete the acquisition of the Druzhny Project, because, having previously been CEO of Imperial Energy Corporation plc and built a successful oil exploration, development and production business in the Tomsk region of Western Siberia, I believe that the Company is well placed to rapidly explore and develop exploration projects in the Tomsk region and I look forward to working again with the many friends and contacts that I have in Tomsk.