Low oil price would not unduly impact IPB’s Idris well
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
It pays to keep an eye on stocks that have been oversold in the wake of oil price volatility, particularly those at the smaller end of the scale.
It was only a fortnight ago that shares in IPB Petroleum Ltd (ASX:IPB) stacked on 200% in a matter of days.
The company released its quarterly activities report for the three months to 31 March, 2020 on Thursday, flagging some important news that could see its shares continue their strong run.
IPB has continued to progress discussions and information exchanges with potential farm-in partners, debt financiers, intermediaries and their representatives.
During the quarter, IPB received a non-binding term sheet for full funding of the Idris well offshore Western Australia with farm-in from one party.
The principal activities of IPB Petroleum centre on conventional hydrocarbon exploration and associated activities relating to its three exploration permits along the southern margin of the Browse Basin offshore north-west Australia as shown below.
Additional economic analysis proves positive
Management remains in discussions with the relevant party, as well as with other interested parties and intermediaries, despite delays associated with COVID-19 and a low oil price environment.
Further economic analysis and study work was completed in the March quarter.
Scenarios of a Phase 1 and Phase 2 development, based on success with the proposed Idris appraisal well, were also completed and provided to potential financiers and farminees.
It is important in the current environment to note success at the proposed Idris well supports economic profitability at relatively low oil prices on a most likely basis.
Should these discussions result in the ratification of firm agreements this would be a significant share price driver for the group.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
