International Petroleum to sell Kazakhstan and Russia assets

Australia-based oil and gas exploration and production company International Petroleum has signed two binding agreements to sell assets in Kazakhstan and Russia for a total of approximately $60m.

The Russian asset sale is expected to be completed in around a month, while the Kazakhstan assets are expected in around six months.

The company plans to use the funds from the deal to clear payment of creditors and loans, general working capital and future exploration expenditure.

It also plans to increase its assets in Niger, and has also started discussions with Range Resources about the merger of the two companies.

International Petroleum chairman Tony Sage said that the assets have sold for a good price in difficult markets.

"With these assets now under a binding agreement, we are able to move the company and its assets forward with significant financial clarity," Sage added.

"The board will now look to rapidly advance our Niger acreage and proactively re-engage with the board of Range Resources so as to advance the proposed merger of the two companies in a timely fashion, on terms to be renegotiated."