Innamincka Petroleum Limited is farming in to a significant opportunity in Bass Strait. INP will earn a 5% participating interest in Permit T/18P which is located in a proven liquids rich gas and oil hydrocarbon basin and contains the existing White Ibis & Trefoil gas condensate discoveries. The neighbouring T/L1 permit contains the currently producing Yolla field.

INP is excited by the opportunity to participate in a permit of this quality, which is highlighted by • Independent assessment of mean original gas in place (OGIP) in excess of 1.2 Trillion cubic feet (Tcf) (1) • Contains the existing Trefoil and White Ibis Gas Condensate discoveries • Recent petrophysical review of the of the Aroo-1 well has identified potential gas-bearing intervals not recognised at the time the well was drilled on the Rockhopper/Gentoo structure in 1974 • Drilling program scheduled to commence later this month (operated by Origin Energy Limited) to appraise the Trefoil discovery and the Rockhopper/Gentoo structure containing the Aroo-1 well • Potential multiple avenues to commercialisation with the Bass Gas development (Yolla) in proximity • An Australian opportunity providing diversification in a well understood geological, operating and political risk environment • Working alongside successful Australian companies, Australian Worldwide Exploration (AWE) Ltd and Origin Energy Ltd

INP’s entry into the permit is the result of a farmdown of CalEnergy Gas (Australia) Limited’s (CEG) interests from 18.5% to 8.5%. Subject to completion of a number of administrative preconditions, Innamincka will take up half of this interest (i.e. 5%), in conjunction with AWE Petroleum Pty Ltd (“AWE”) which will take up the other 5.0%. AWE will thus become entitled to a 47.5% interest. Origin Energy Limited (“Origin”) is the remaining party (and operator) with a 39.0% interest. INP will fund the acquisition of its participating interest with a $5m carry of CEG’s 2009 and future costs.

Initial activities will involve a 2 well drilling exploration/appraisal program which is anticipated to commence in late July 2009. The program comprises Trefoil 2 followed by Rockhopper 1 with each well is expected to take about one month.

According to INP’s recently appointed CEO, David Kinsman, “Securing an interest in this high quality asset is the first step in broadening Innamincka’s asset portfolio beyond the Cooper/Eromanga Basin while keeping the benefits of remaining in Australia. In taking up such opportunities, it is INP’s intention to align itself with partners with successful performance records in the Australian upstream oil & gas industry with a view to developing those relationships for the longer term.”

Tags: Innamincka Petroleum