International Petroleum Limited (International Petroleum or the Company) advises its shareholders that, along with its 50% partner, it has signed a contract to extend its rights to explore for hydrocarbons in an area covering 24,649 km˛ in eastern Kazakhstan (Alakol Project) by two years from 28 May 2013 to 28 May 2015.
The Company, through its wholly owned subsidiary, North Caspian Petroleum Ltd, operates and owns a 50% interest in subsoil use rights for the exploration of hydrocarbons in the Alakol Project. The remaining 50% is owned by Remas Corporation LLP, a privately owned Kazakhstan company.
The Alakol Project is located in eastern Kazakhstan and borders the western boundary of the People’s Republic of China. The main target reservoirs in the Alakol basin are carbonates or sandstones of Paleozoic age occurring at depths ranging between 1,600 and 3,500 metres. The Alakol basin is considered to be similar to the Junggar and Zaisan basins, which are both proven oil-containing basins, across the border in China.
In a report, as of 31 July 2012, DeGolyer and MacNaughton estimated the prospective petroleum resources of 12 oil and gas prospects that have been identified in the Alakol Project in Kazakhstan as:
• Low estimate 305,744,000 barrels
• Best estimate 517,307,000 barrels
• High estimate 980,994,000 barrels
The prospective resources volumes above have not been adjusted for geological or economic risks.
During the second half of 2013, the Company plans to carry out a 3D seismic study in order to assist with targeting the reservoir-quality sands and selecting the locations of future exploration wells.
