IPB Petroleum Raises $1.27M to Acquire Strategic Alaskan Oil Leases

Strategic Entry into Alaska’s National Petroleum Reserve

IPB Petroleum Limited (ASX, IPB) has taken a decisive step to expand its footprint in one of North America’s most promising oil provinces by signing a binding terms sheet to acquire Peritas LLC, an Alaskan entity holding 143,368 acres of leases within the National Petroleum Reserve of Alaska (NPR-A). This acquisition includes the historically significant Umiat oil field and is positioned just 35 kilometres south of ConocoPhillips’ massive Willow Project, which boasts an estimated 700 million barrels of recoverable oil.

The NPR-A region has recently seen renewed interest and regulatory support from the US government, with increased exploration activity anticipated and a major lease sale scheduled for early 2026. IPB’s move aligns with this momentum, aiming to capitalize on the region’s vast hydrocarbon potential.

Asset Potential and Exploration Upside

The portfolio comprises 11 exploration leases and 2 unitised leases covering the Umiat field. Previous operators, including 88 Energy Limited, have confirmed hydrocarbon presence on key prospects such as Merlin, while others like Harrier remain untested, offering significant upside for IPB. The Umiat field itself has undergone detailed development studies indicating potential economic viability under favourable oil price conditions.

IPB plans to revisit these studies, assess the remaining prospectivity of the exploration leases, and explore additional leasing opportunities within the NPR-A. The company’s familiarity with Alaska’s North Slope, stemming from prior pursuits in the region, positions it well to navigate the technical and regulatory landscape.

Transaction Structure and Funding

The acquisition is structured with an exclusivity fee and a US$300,000 interest-free loan to secure lease bonds required by the Bureau of Land Management. Upon completion, Peritas will become a wholly owned subsidiary of IPB. Concurrently, IPB has entered a consultancy agreement with Paul L. Craig, the owner of Peritas, who will receive performance rights tied to key milestones such as acquisition completion and drilling activity.

To fund the acquisition and subsequent technical and commercial studies, IPB is raising approximately $1.27 million through a placement of shares and options. Directors have committed to participate in the raise, underscoring internal confidence. Post-transaction, the company expects to hold around $2 million in cash, providing a runway for initial exploration activities.

Navigating Royalties and Mutual Interest Agreements

The leases carry a 12.5% royalty to the BLM, alongside preexisting overriding royalty interests (ORRIs) ranging from 1.3% on exploration leases to 11.5% on the Umiat unitised leases. An Area of Mutual Interest agreement restricts competing lease acquisitions within the defined area, ensuring cooperative development among stakeholders. Notably, IPB’s chairman holds a minor ORRI interest but has recused himself from related decisions to avoid conflicts.

These arrangements reflect the complex but manageable royalty and partnership landscape typical of Alaskan oil assets, which IPB appears prepared to handle.

Looking Ahead

With due diligence and regulatory approvals targeted for completion by the end of 2025, IPB’s acquisition could mark a pivotal expansion phase. The company’s focus on technical validation and strategic partnering will be critical to unlocking value from these leases. Given the proximity to major projects and the region’s revitalized exploration environment, IPB’s Alaskan venture is one to watch closely in the coming months.