International Petroleum: Quarterly Activities Report for the Quarter Ending 30 June 2015
International Petroleum Limited (NSX: IOP) (“International Petroleum” or the “Company”), an oil and gas
exploration company is pleased to present its activities report for the three months ending 30 June 2015.
UPDATE ON KEY ISSUES
- US$3,464k cash at bank at 30 June 2015
- Update on Niger project
- Update on Kazakhstan project
- Sale of Non‐Core South African Assets
- NSX suspension from official quotation CORPORATENiger project
Due to the continuing threats to security along the Niger‐Nigeria border and the Republic of Niger’s declaration of the state of emergency in this region, including areas contained within the Company’s exploration blocks, a force majeure was officially declared by the Company in February 2015 in accordance with the PSCs and accepted by the Ministry of Energy and Petroleum of Niger. The Company plans to resume all operational activities once the force majeure is lifted and the country’s security situation normalises.
Kazakhstan project
On 4 August 2014, the Company received a notification from the Ministry of Energy of the Republic of Kazakhstan (formerly the Ministry of Oil and Gas) (“ME”) that its rights to the Alakol licence had been withdrawn by ME unilaterally. The Company did not accept this as being justified and filed a lawsuit against ME demanding that the licence be reinstated back to the Company. A first instance court hearing was held on 16 January 2015 to address our claim for the licence to be reinstated and was decided in our favour. It was also recommended by the court of first instance that the licence expiry date be extended to account for lost time since the date the licence was withdrawn. ME has appealed this decision, and recently won. Immediately following this appeal court decision, the Company submitted a cessation appeal against it on 28 April 2015 and an official ruling against this was issued on 10 June 2015. The Company maintains its position
and is currently reviewing its strategy which includes an option to pursue the last remaining legal channel available. The Company has one year from 10 June 2015 to submit its appeal to the Supreme Court.
Sale of Non‐Core South African Assets
During October 2009, the Company entered into a sale agreement (the “Sale Agreement”) with Nkwe Platinum Limited (ASX: NKP) (“Nkwe”) relating to the Company’s interest in a South African platinum project (“Tubatse Project”).
Owing to the continued delays to the settlement of the dispute about the ownership of two of the three mineral farms that comprise the Tubatse Project and the negotiations with suitable joint venture partners, Nkwe had not been able to pay the A$45 million consideration to the Company by the revised agreement date of 31 December 2012. The Company is currently in the process of negotiating a settlement with Nkwe and hopes to have a resolution in the coming weeks.
NSX suspension from official quotation
Since 27 March 2013, the Company’s shares have been suspended from trading on the NSX market, at the Company’s request. Now that the Company’s reporting obligations and requirement to hold an Annual General Meeting have recently been satisfied, the Company will request that trading resume in due course. An announcement will be sent to shareholders once the trading suspension is lifted.