Ivanhoe Energy expands interest in East Lost Hills
Ivanhoe Energy Inc IE
Shares issued 89,727,767 Sep 24 close $3.90
Mon 27 Sept 99 News Release
Mr. David Martin reports
Ivanhoe Energy has completed an agreement to increase its interest in an
early exploration program to evaluate the deep gas potential of its East
Lost Hills properties in Southern California's San Joaquin Valley.
Ivanhoe has signed an amending agreement with its partner, a major oil
producer in California, through which Ivanhoe now will earn an increased,
minimum working interest of 47 per cent in leases held within a 15,680-acre
block of mutual interest in East Lost Hills. Ivanhoe also owns overriding
royalty interests ranging from 1.375 per cent to 6.88 per cent on the Lost
Hills properties, which include more than 4,000 acres of oil and gas leases
presently held by Ivanhoe and its partner.
David Martin said that Ivanhoe Energy is taking the lead role in the
partnership in acquiring a detailed seismic program, to supplement existing
seismic data held by the partners, which will commence in November and will
help to fix a drilling location for the East Lost Hills prospect.
"A deep exploration well is planned to test this prospect after completion
of the seismic program and after a review of results from wells currently
being drilled in the vicinity by a Canadian consortium, led by Berkley
Petroleum, of Calgary," Mr. Martin said.
"Berkley's first well blew out last fall, and was subsequently confirmed by
the sidetrack redrill of its relief well. Based on existing seismic and
geological data, our block is adjacent to, and on trend with, Berkley's
drilling activities."
As announced in recent months, Ivanhoe Energy has positioned itself to be a
significant participant in the California deep gas play through actions
that include:
a commitment to a 12.5-per-cent participation in the Lucky Dog No. 1 deep
gas exploration well, scheduled for drilling later this year; and
acquisition of a portfolio of royalty interests, which will form the
nucleus of an operating subsidiary within Ivanhoe Energy.
Ivanhoe Energy expects to be in a position shortly to release additional
information on its expanded property holdings and exploration interests in
the San Joaquin Valley.
WARNING: The company relies upon litigation protection for
"forward-looking" statements.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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