Capital Raising of $1.4M at $0.04 – IPB Petroleum Ltd (IPB)

IPB Petroleum Limited (ASX: IPB) to raise $1.4m or 35 Million Shares at an issue price of $0.04 for Sophisticated Investors with Bids to close at 11am 17/04/19

Key Investment Highlights and Share Price Catalysts

· IPB has been off the radar until recent interest on the back of the Idris Prospective Resource increase in May 2018

· IPB is currently engaged with potential farm in partners

· WA-424-P renewal makes IPB very attractive to farm in partners and any farm in deal should add substantial upside to the valuation of IPB.

· IPB recently announced  a debt finance mandate with Atoll Financial for their proposed Drilling and testing Program of WA-424-P

· IPB’s implied Enterprise Value at this capital raising price of 4 cps post this transaction is approximately A$7.5 million which provides very substantial upside in the event of a successful farmout and/or debt financing success

· IPB has very low market cap and EV compared to its ASX peers. IPB Market Cap is $9.4m This represents a substantial discount to peers such as TDO ($30.4m), and CVN ($584 m).

· Experienced Board and Management with extensive experience and track record in Oil and Gas

· The Board have significant equity in IPB that they have paid for and were buying on market throughout 2018. Directors hold approximately 39% of the issued equity in IPB.

· This capital raising is very attractively priced in what has been a recovering sector with increasing interest in exploration and development from global players.

· Carnarvon (CVN.asx) has advised that drilling at the Dorado discovery in a basin to the south of IPB’s permits is due to recommence within the next few weeks (early May).  In late 2018 during this drilling a number of small oil stocks increased their market cap significantly with IPB trading to 10 cps and turnover as high as 30-40% of its total capitalisation in 1 day.

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Click Here for IPB Info Sheet

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