Ivanhoe Energy announces sale of Pan-China Resources Ltd.
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5 Years : From May 2011 to May 2016
Corporate transaction supports strategy and bolsters balance sheet
CALGARY, Nov. 21, 2012 /PRNewswire/ - Ivanhoe Energy Inc. (TSX: IE; NASDAQ:
IVAN) announced today that it has signed a Share Purchase and Sale
Agreement with MIE Holdings Corporation (MIE) for all of the
outstanding shares of its indirect, wholly owned subsidiary, Pan-China
Resources Ltd., in exchange for a cash consideration of USD$45
million. Pan-China Resources holds 100 per cent of the foreign
contractor's rights for the Dagang Production Sharing Contract.
MIE is publicly traded on the Hong Kong Stock Exchange and specializes
in oil and gas exploration, development and production. The Company is
headquartered in Hong Kong and has operations in China, the United
States and Kazakhstan.
The transaction has an effective date of September 30, 2012 and is
subject to standard industry closing conditions, including a USD$5
million hold-back of the total consideration that is payable six months
from the closing date. Anticipated closing will be within 30 days.
The divestiture of Pan-China Resources aligns with the renewed strategy
of Ivanhoe Energy. The Company continues to execute a comprehensive
plan to strengthen its balance sheet and focus resources on its
patented and proprietary Heavy to Light Technology (HTL) and a core group of high-growth potential heavy oil
The Company's current priorities include divesting Zitong and Pan-China
Resources, securing regulatory approval for the Tamarack project in
Canada, establishing partnerships to develop Tamarack and Block 20 in
Ecuador and completing mid-stream partnerships that support the
commercialization of HTL.
Ivanhoe Energy is an independent international heavy oil exploration and
development company focused on pursuing long-term growth in its
reserves and production using advanced technologies, including its
proprietary heavy oil upgrading process (HTLTM). Core operations are in Canada, United States, Ecuador, China and
Mongolia, with business development opportunities worldwide. Ivanhoe
Energy trades on the Toronto Stock Exchange with the ticker symbol IE
and on the NASDAQ Capital Market with the ticker symbol IVAN.
For more information about Ivanhoe Energy Inc. please visit www.ivanhoeenergy.com.
FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements, including
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements include, but
are not limited to the potential for commercialization and future
application of the heavy oil upgrading technology and other
technologies, statements relating to the continued advancement of
Ivanhoe Energy's projects, statements relating to the timing and amount
of proceeds of agreed upon and contemplated disposition transactions,
statements relating to anticipated capital expenditures, statements
relating to the timing and success of regulatory review applications,
and other statements which are not historical facts. When used in this
document, the words such as "could," "plan," "estimate," "expect,"
"intend," "may," "potential," "should," and similar expressions
relating to matters that are not historical facts are forward-looking
statements. Although Ivanhoe Energy believes that its expectations
reflected in these forward-looking statements are reasonable, such
statements involve risks and uncertainties and no assurance can be
given that actual results will be consistent with these forward-looking
statements. Important factors that could cause actual results to
differ from these forward-looking statements include the potential that
the Company's projects will experience technological and mechanical
problems, new product development will not proceed as planned, the HTLTM technology to upgrade bitumen and heavy oil may not be commercially
viable, geological conditions in reservoirs may not result in
commercial levels of oil and gas production, the availability of
drilling rigs and other support services, uncertainties about the
estimates of reserves, the risk associated with doing business in
foreign countries, environmental risks, changes in product prices, our
ability to raise capital as and when required, our ability to complete
agreed upon and planned asset dispositions, competition and other risks
disclosed in Ivanhoe Energy's 2011 Annual Report on Form 10-K filed
with the U.S. Securities and Exchange Commission on EDGAR and the
Canadian Securities Commissions on SEDAR.
SOURCE Ivanhoe Energy Inc.