PETROLEUM EXPLORATION PERMITS LOCATED IN BROWSE BASIN IPB...

PETROLEUM EXPLORATION PERMITS LOCATED IN BROWSE BASIN

IPB Petroleum’s website states “Our aim is to achieve superior returns for our Shareholders through early entry, exploration and, if successful, the development and production from its oil and gas assets, WA-424-P, WA-471-P & WA-485-P”.

Over the last 12 months the Company has applied to the WA / Federal Joint Authority to retain the three Browse Basin permits by extending or modifying work and expenditure commitments for at least 12 months. The Company also engaged with potential farminees to undertake and fund work in the permits in exchange for equity. The Company has been unsuccessful in its efforts to attract farmin partners.

In May 2017 the Company announced it had received commitments for a placement to raise $700,000 for from professional and sophisticated investors both domestically and internationally to: (i) investigate and assess possible future production related investment opportunities in South East Asia (under a Business Development Services Agreement (BDSA Agreement) with Lexington Partners Pte Ltd); (ii) fund ongoing Browse Basin farmout activities and study work; and (iii) general working capital purposes.

In July 2017, IPB Petroleum’s advised it could not resolve outstanding concerns relating to the BDSA and proceeded to terminate without any satisfactory explanation to shareholders, particularly those shareholders that agreed to participate in the share placement on the understanding that IPB Petroleum was to pursue possible future production related investment opportunities in South East Asia.

There is no reason to suggest that the current directors are capable of achieving the Company’s strategy of identifying potential farminees to undertake and fund work in the permits.

Given IPB Petroleum’s precarious cash position and the substantial expenditure associated with work commitment programs pursuant to the Company’s 3 exploration permits and excessive remuneration arrangements, the Company needs to undertake an urgent review of the Company’s strategy. This review can only be done by an independent board.