Ivanhoe Energy Inc -
Ivanhoe's Kongnan project obtains increased stake from Nippon Oil
Ivanhoe Energy Inc IE
Shares issued 89,727,767 1999-08-03 close $2.8
Wednesday Aug 4 1999
Mr. David Martin reports
Nippon Oil Exploration Ltd. of Japan, has doubled its stake, from 10 per cent to 20 per cent, in the planned development of Ivanhoe Energy's Kongnan project on the Dagang oilfield in China.
The increased participation has been approved by the government of China and by China National Petroleum Corp., with which Ivanhoe has a production-sharing agreement. Dagang, approximately 200 kilometres southeast of Beijing, is the sixth-largest onshore oilfield in China.
The Kongnan project, consisting of six blocks that cover a total of 22,400 acres (90.5 square kilometres), represents the first investment in China's petroleum sector by Nippon Oil Exploration. The exploration and production company, prominent in international energy circles, is owned by Nippon Mitsubishi Oil Corp. of Tokyo, a leading importer, refiner and distributor of crude and petroleum products, which controls about 25 per cent of Japan's domestic petroleum market.
Nippon Oil Exploration said in a statement that a 20-per-cent interest in the Kongnan project is a more appropriate level of participation given the potential to significantly expand the annual output of oil from Dagang's reservoirs with the help of international production expertise and development capital.
Ivanhoe Energy, working with Nippon Oil Exploration, is preparing a preliminary, long-term development plan for the Kongnan project that includes the drilling and reworking of 100 wells, including 56 of 82 test wells that have been drilled during the past 10 years. The plan envisions production of approximately 36,000 barrels a day by the end of 2003.
Ivanhoe and Nippon started work on the Kongnan project in July. Their pilot program, to be completed by the end of next year, will involve the workover of five of the 26 existing wells that currently produce oil intermittently from Kongnan project blocks, and the drilling and testing of five new wells. Oil zones on the blocks have been delineated with the help of the 82 test wells, which were drilled by Ivanhoe's operating partner, Dagang Oil Group, of China.
Ivanhoe, which holds a 100-per-cent interest in an exclusive contract to develop the Kongnan project, first announced on May 13, 1999, that Nippon Oil Exploration had agreed to acquire a 10-per-cent interest in the project. The Tokyo-based company subsequently decided to acquire an additional 10 per cent. Ivanhoe Energy remains in discussions with other potential partners, which have expressed interest in joining the Kongnan project.
The shares of Ivanhoe Energy trade on the Toronto Stock Exchange, under the symbol IE. Formerly known as Black Sea Energy, the company acquired Sunwing Energy Ltd. and changed its name to Ivanhoe Energy in June, 1999.
In the United States, Ivanhoe Energy is developing deep-gas exploration plays in the southern San Joaquin Valley. Through its acquisition of Diatom Petroleum Inc., of Bakersfield, Calif., Ivanhoe holds an exploration contract directly with Aera Energy LLC, the largest oil producer in California, which has a land portfolio of more than 80,000 acresIvanhoe Energy Inc -
Ivanhoe Energy names Shun-ichi Shimizu to board
Ivanhoe Energy Inc IE
Shares issued 89,727,767 1999-08-09 close $4.25
Monday Aug 9 1999
Mr. David Martin reports
Ivanhoe Energy has appointed Japanese energy executive Shun-ichi Shimizu to the company's board of directors.
During a 33-year career in the energy industry, Mr. Shimizu managed many large projects, including international liquid natural gas and oil development projects for Japanese trading company Nissho Iwai Corporation, oil-producing companies and major Japanese electric and gas utility companies. Mr. Shimizu also was the senior representative of Occidental Petroleum's Japanese subsidiary, Occidental of Japan Inc.
In his positions with Nissho Iwai and Occidental of Japan, Mr. Shimizu was responsible for the raising of more than $10-billion (U.S.) to finance liquid natural gas projects in Asia and North America, and oil and gas exploration and development projects in Asia and the Middle East.
As chief executive officer and managing director of Tokyo-based C.U.E. Management Consulting Ltd., Mr. Shimizu is currently serving as special adviser to corporate and municipal government clients on the planning and financing of urban development, transportation and energy projects.
"We are very pleased that Mr. Shimizu has joined our board," Mr. Martin said. "His extensive experience in planning, financing and managing international energy projects will be immensely helpful as Ivanhoe Energy pursues new oil and gas development opportunities in Asia and the Middle East."
Ivanhoe Energy and its joint-venture partner, Nippon Oil Exploration Limited, of Japan, began work in July on a pilot program at the 22,400-acre Kongnan project at the Dagang oil field in China. The program will involve the work-over of five of the 26 wells that currently produce oil intermittently, as well as the drilling and testing of five new wells. The development plan for the project estimates production of approximately 36,000 barrels a day by the end of 2003. Nippon recently doubled its participating interest in Kongnan, from 10 per cent to 20 per cent.
In California, Ivanhoe Energy is developing deep-gas exploration plays in the oil-rich San Joaquin Valley in a joint venture with Aera Energy LLC. Aera, the largest oil producer in California, has a land portfolio of more than 80,000 acres, including Lost Hills and other major producing oil fields in the San Joaquin Valley.
WARNING: The company relies on litigation protection for "forward-looking" statements.
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