IPB Petroleum (ASX: IPB) shares have been placed into pre-open after it was granted an ASX trading halt in relation to a proposed capital raising.
The halt will last until the earlier of the announcement being made or the start of trading on 26 November.
IPB expects the highly anticipated Pryderi-1 exploration well in WA-424-P offshore northwestern Australia, which targets Mean Prospective Resources of 40 million barrels of oil, to spud in the first quarter of 2014.
IPB’s share of costs will be free carried by CalEnergy, a fully-owned subsidiary of Berkshire Hathaway’s MidAmerican Energy Holdings Company. IPB has a 75% interest while CalEnergy holds 25%.
The Pryderi prospect is around 5 kilometres away from Gwydion-1, which encountered a 14.5 metre gas column in poor quality glauconitic sand above a 10 metre oil column in good quality clean sand.
It is deemed to have a 75% chance of hydrocarbon discovery with 60% chance of this being oil, or an overall 45% chance of an oil discovery.
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