International Petroleum Corp. Reports on its Pandora Gas Development Project

Business Wire, June 27, 1996

VANCOUVER, British Columbia--(BUSINESS WIRE)--June 27, 1996--International Petroleum (TSE: IRP NASDAQ: IRPPF) International oil and gas producer, International Petroleum Corporation ("IPC") is very pleased to announce that it has completed 70 percent of a feasibility study on its proposed $1.3 billion natural gas pipeline to link North Queensland with its vast Pandora field in Papua New Guinea. Indications so far are that this project is right on track with Queensland's projected energy requirements for the next decade and beyond.

IPC, after wide consultation with the Torres Strait Regional Authority, the three Queensland Land Councils involved and other community organizations and groups, has drawn up a Draft Terms of Reference for the Environmental Impact Assessment Study which has been formally submitted for public comment and review by the Queensland Government. The Terms of Reference mark another important step towards the realization of this project which will help to inject billions of dollars of investment into Queensland and Papua New Guinea.

The pipeline corridor has been identified and Memoranda of Understanding with Torres Strait and Aboriginal leaders and communities has either been finalized or is well advanced. The wide ranging consultations so far have included flying with Aboriginal leaders and engineers along the entire proposed route from Townsville up to the top of Cape York.

This has resulted in the proposed route avoiding the entire wet tropics area, other ecologically sensitive areas, and areas of cultural significance to both Aboriginal people and Torres Strait Islanders. International Petroleum Corporation has been highly commended by the communities and governments involved for its efforts in developing a set of protocols that ensure that issues of environmental and cultural heritage concern to Aboriginal people will be addressed as well as overall economic benefits and employment opportunities.

International Petroleum has been contacted by a number of international and Australian pipeline developers who have expressed interest in being part of the project. Discussions with these companies are continuing.

The Pandora PPL-82 gas field has in excess of 1.6 trillion cubic feet of recoverable reserves. IPC is the operator and has a 48.1819 percent interest.

Note - There is a map available by contacting the company at the number below.

CONTACT: International Petroleum Corporation

Ian H. Lundin, 604/689-7842

604/689-4250 (Fax)