ABN: 76 118 108 615 Corporate Office NSX Announcement 27 May 2011 18 Oxford Close Leederville, WA 6007 P.O. Box 144 West Perth, WA 6872 T +61 8 9388 0744 F +61 8 93821411 E [email protected] W www.internationalpetroleum.com.au Company Presentation International Petroleum Limited is pleased to attach a copy of an updated Company presentation which will be referred to at the Company’s Annual General Meeting today, and used by executives in presentations in the coming weeks. Yours faithfully International Petroleum Limited Claire Tolcon Company Secretary For further information, please contact: Tony Sage David Tasker Executive Chairman Professional Public Relations International Petroleum Ltd Ph: +61 (0)8 9388 0944 / +61 (0)433 122 936 Ph: +61 (0)8 9388 0744 /+61 (0)419 905 908 Email: [email protected] Corporate Presentation May 2011 Agenda • Management Team • Recent Developments • Investment Highlights • Company’s Objectives • Corporate Overview • Asset Overview • Assets at a Glance • Krasnoleninskiy Project (Russia) • Alakol Project (Kazakhstan) • Development Plan for 2011-2012 • Conclusions 2 Management Team Chris Hopkinson William McAvock Alexander Osipov Ken Hopkins Dr Valera Beloussov Anya Belogortseva BSc (Hons) BA (Hons), FCCA MA (Hons) MSc (Econ) Director General CEO CFO VP Russia (Country Mgr) Country Mgr Kazakhstan Petroleum Engineer Kazakhstan Head of M&A • Extensive Russian, • Significant experience in • 20-year experience in • Extensive Russian, CIS • Extensive experience in CIS and International finance functions of the energy industries of and International • Extensive Russian, CIS O & G Experience mineral resource North America and CIS Experience and International • European Hydrocarbons • CEO Imperial Energy companies • VP Eastern Petroleum • Dir Exploration Caspian Experience Ltd • VP Western Siberia • GFC African Minerals Limited Energy • Group Operating • PetroKazakhstan Inc TNK-BP Ltd (AIM: AMI) • VP Geneco Inc. • SVP Orient Petroleum Manager of IPL • Denton Wilde Sapte, • Director PM at Lukoil • GFC Adastra Minerals (Central Asia) • General Director of Almaty Kazakhstan • VP Production at Inc. (TSX and AIM) • International Advisor– NCPL (Kazakhstan) • Lukoil Yukos Oryx Energy • Vice-President of RAO • BP • SVP North Africa BG- Rosneftegazstroy • Clore & Co Solicitors Group • Vice-President of • Shell International Rosneft-Shell • Director of Rosneft International 3 Recent Developments The Company decides Company to delist its shares from Drilling of first 2 Well 1 in Company raised commences drilling Australian Stock Company acquires exploration wells Krasnoleninskiy US$ 30 mn to of A-3 well within Exchange (ASX). Krasnoleninskiy project within Project in Russia finance its the Alakol licence Shares will continue to in Western Siberia, Krasnoleninskiy block finds and cores oil in exploration activities area in Kazakhstan be quoted on National Riussia in Russia the Bazhenov and in Kazakhstan (target depth of Stock Exchange of commences Tyumen Suites 2,600m) Australia (NSX) Oct-Dec May 2010 July 2010 Aug 2010 Jan 2011 Mar 2011 Apr 2011 May 2011 2010 International Petroleum is The Company stops drilling A- The Company admitted to the quotation 2 well due to strong wind announces that well on National Stock speeds, which are dangerous A-3 reached depth Ryder Scott issues Exchange (NSX) for operational activities of 1,066 meters and Chris Hopkinson report for Alakol with would be joins International 1.4 billion barrels of Company commences The Company announces the abandoned due to Petroleum as CEO recoverable P50 net drilling of A-2 well within 2-year extension of the geological reasons unrisked resources the Alakol licence area in Kazakhstan Project contract (volcanic structures Kazakhstan (target depth with Kazakh authorities till 13 made it impossible of 3,500m) November 2012 to drill further) 4 Investment Highlights 1 Exploration blocks in 2 Significant resource well-developed base with upside provinces of Russia and potential in frontier Kazakhstan 7 Effective platform for acquiring onshore 3 assets worldwide Targeting commencement of production in 2012 with ramp up from 2013 6 Cost-efficient near-term development plan being implemented 5 4 Experienced Developed infrastructure management team with in place successful track record of similar projects 5 Company’s Objectives • Bring existing fields to production stage and maximize shareholder return • Locate, assess and acquire material exploration projects in Russia and Kazakhstan and quickly establish oil and gas reserves – Existing Basins • Opportunistically review and acquire projects in both established oil and gas provinces and green field areas worldwide – New Frontiers 6 Corporate Overview Organizational chart Shareholders Shares on Issue 948,865,364 International Petroleum (NSX: IOP) Unlisted options* 100% 100% Exp 30 Jun 2012 at $0.25 135,193,072 Exp 16 Nov 2015 at $0.30 9,500,000 International Petroleum Eastern Petroleum Corporation (Cayman) Exp 17 Mar 2016 at $0.25 6,000,000 100% 100% Exp 17 Mar 2016 at $0.30 1,875,000 North Caspian Petroleum IPL Siberia (Cayman) (NCPL) Fully Diluted 1,101,433,436 75% Safeguard Souville Investments Ltd Management (Cyprus) Hilburg 50% 100% 30.85% International Kontillo Resources Irtysh-Neft (Russia) Higgins 46.82% Investments 100% Caldwell Management Alakol Block Krasnoleninskiy Blocks JP Morgan 2.65% 2.90% HSBC 3.01% 4.27% Other 4.75% 4.75% * - Unlisted options are granted to employees and private shareholders 7 Assets at a Glance Russia Location Map • Well established Basin with good infrastructure. Access to the best people • 75% interest in Krasnoleninskiy Project, Khanty-Mansiysk Autonomous District, Tyumen region • Four blocks, total area – 1,467km² • Exploration 5-year licences for each block valid until 2012 • Multiple structures identified from close spaced recent 2D seismic data • Two exploration wells are being drilled in 2011, another 2 wells are to be completed in 2012 (target drilling depths of 1,700-3,000 meters) • First Exploration well has encountered oil in the Bazhenov and Tyumen suites. Drilling is continuing. Kazakhstan • Frontier exploration – high level of confidence – 1.4 Billion Barrel prize (net unrisked resources) • 50% interest in Alakol Project, South-Eastern Kazakhstan • Five drillable prospects and 18 leads, total area – 24,649km² • Exploration contract until November 2012 • All five prospects are well defined by good quality seismic resolution and pronounced structural features • Existing rail and pipeline infrastructure within the licence area Net resources summary Resources, mmbbl Projects P90 P50 P10 Russia 169.0 260.0 385.0 Krasnoleninskiy 169.0 260.0 385.0 Kazakhstan 934.9 1,379.4 1,979.6 Alakol 934.9 1,379.4 1,979.6 Total 1,103.9 1,639.4 2,364.6 8 Krasnoleninskiy Project Location Map General overview • Krasnoleninskiy Project includes four blocks in Khanty-Mansiysk Autonomous District, Tyumen region, with total area of 1,467 km² Kamennoye Field (Lukoil, TNK-BP) • The blocks are close to the large western Siberia fields of Kamennoye (280 million tonnes of reserves, Lukoil, TNK-BP) and Priobskoye (470 million tonnes of reserves, Gazpromneft) Khanty Mansiysk Priobskoye Field • The Company has acquired its 75% interest in Krasnoleninskiy Project from (Gazpromneft) Akropol group in October 2010 • The Company is to finance all necessary CAPEX and operating expenses Current status • Four well work programme commenced in 2011 and to be completed in 2012 (target drilling depths of 1,700-3,000 meters), International Petroleum has mobilized two rigs to drill exploration wells • Well #1 and well #2 were drilled in April-May 2011, their current depth to- date is 2,672 and 2,658 metres, respectively • Well #1 discovered oil reservoir in Tutleimsky (Bazhenov) - Abalak structures with net thickness of 21 metres and Tyumen structure with gross thickness of at least 12 meters (drilling continues in Tyumen structure). Wells #3 and #4 are to be drilled in 1H2012 • Production is expected to commence in winter 2011-2012 with production Krasnoleninskiy Blocks reaching 2,000-5,000 bopd by the end of 2013 (depending on the number of wells drilled) Reserves/Resources • Krasnoleninskiy Project P50 and P10 resources are estimated at 260 and 385 mmbbl, respectively (Ryder Scott, as of 1 July 2010) Infrastructure • Transneft’s trunk oil pipeline lies 100 km south of blocks • Before the pipeline connecting the Block with Transneft pipeline is constructed, oil would be transported by trucks 9 Krasnoleninskiy Block – Seismic Data • Top Paleozoic basement and representative seismic line across the contract area Line 41 Cretaceous Sequence Top Jurassic Paleozoic Sequence 10 Krasnoleninskiy Block – Drilling Results Well No. 1 (Krasnoleninsky-7) Drilling Results Coring Results • Spud date – 25 March 2011 • Target depth – 2,850 m • Current depth – 2,672 m • High potential for oil discovery in Vikulov formation (VK1- 1,572-1,576 m) based on geophysical data (to be tested in a cased well) • Oil has been discovered to date based on coring results in multiple formations: - Tutleimsky (Bazhenov) Yu0 – 2,595-2,624 m 0 - Abalak Yu2 – 2,624-2,633 m - Tyumen Yu2 – 2,645-2,655 m Well No. 2 (Krasnoleninsky-8) Core from Bazhenov Suite • Spud date – 6 April 2011 • Target depth – 2,930 m • Current depth – 2,658 m • Intermediate casing (245 mm) cemented to a depth of 1,949 m • High potential for oil discovery in the following formations (based on the results of drilling Well No. 1): - Tutleimsky (Bazhenov) Yu0 0