Ivanhoe Energy closes $20 million financing to advance oil & deep gas
exploration in California
David Martin, Chairman of Ivanhoe Energy Inc.,
announced today that the company has closed its CDN$20.3 million (US$14.1
million) private placement announced on January 24, 2000. The funds will be
used primarily to advance Ivanhoe Energy's oil and deep-gas drilling program
in California's San Joaquin Basin, one of the largest energy-producing
regions
in the U.S.
SMALL CAP World Fund, Inc., a large, U.S.-based mutual fund managed by
Capital Research and Management Company of Los Angeles, California, purchased
CDN$13 million (US$9 million) of the private placement.
Mr. Martin welcomed SMALL CAP World Fund as a new shareholder. "Capital
Research and Management Company is one of the largest and most experienced
investment management firms in the world. Its investment in Ivanhoe is an
acknowledgement of the potential of our exploration properties in California
and the prospects for our current development project on the Dagang oilfield
in China."
Mr. Martin said that Ivanhoe Energy, with interests in approximately
300,000 acres of exploration ground in the southern San Joaquin Basin, is one
of the companies best positioned to benefit from any successes in the
advanced
search for new reserves of oil and natural gas in the region. In China,
potentially the world's most significant emerging market, Ivanhoe - in
partnership with Petro China (formerly China National Petroleum Corp.) and
Japan's Nippon Oil Exploration Limited - is drilling new wells and reworking
existing wells in a pilot program designed to increase production and rates
of
oil recovery.
The balance of Ivanhoe's newly completed financing, approximately CDN$7.3
million (US$5.1 million), was purchased by the company's Deputy Chairman
Robert M. Friedland, Mr. Martin and other members of its Board of Directors
and senior management team.
The private placement consists of 6.25 million units at a price of
CDN$3.25 per unit. Each unit consists of one common share and one
share-purchase warrant. Two share-purchase warrants entitle the holder to
acquire one common share of Ivanhoe at an exercise price of CDN$4.00 for a
period of one year. Ivanhoe now has 116.8 million shares issued and
outstanding and 128.8 million shares fully diluted.
Ivanhoe Energy shares trade on the Toronto Stock Exchange under the
symbol IE.
For investors - Peter Meredith and Bill
Trenaman, For media - Bob Williamson (604) 688-8323, Website:
www.ivanhoe-energy.com |
