International Petroleum Signs Binding Agreements for the Sale of Russian and Kazakhstan Assets for US $60 million

International Petroleum Limited has entered into two binding conditional terms sheets with an unrelated company incorporated in Hong Kong to sell its assets in Kazakhstan and Russia for US $60 million.

Commenting on the reaching of agreement for the sale of its Kazakhstan and Russian assets, International Petroleum Chairman, Mr Tony Sage, said, “While these assets have only been marketed for a short period, we have received a binding agreement for a good sale price in difficult markets, which is an extremely pleasing result. With these assets now under a binding agreement, we are able to move the Company and its assets forward with significant financial clarity.”

The sale of the Russian Asset s is expected to complete in approximately one month and the sale of the Kazakhstan Assets is expected to complete in approximately six months (on receipt of G overnment Approval). The Company will apply the funds received from the transactions towards payment of creditors and loans, general working capital and future exploration expenditure.

It will also look to advance its assets in Niger, along with entering into negotiations with Range Resources Limited about a potential merger of the two companies on revised terms, given the Term Sheets for the sale of the Kazakhstan Assets and Russian Assets is now in place .

“With the binding agreements for the sale of our Kazakhstan and Russian assets now in place , the board will now look to rapidly advance our Niger acreage and proactively re-engage with the board of Range Resources so as to advance the proposed merger of the two companies in a timely fashion, on terms to be renegotiated ” Mr Sage added.