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Gold/Mining/Energy : Black Sea Energy (BSX) -- Ignore unavailable to you. Want to Upgrade?

To: Winzer who wrote (173)	9/7/1999 10:32:00 AM
From: Winzer	Read Replies (1) \| Respond to of 180

Even More Good News -- This Company Continues to Deliver Ivanhoe Energy's interest in San Joaquin Valley Ivanhoe Energy Inc IE Shares issued 89,727,767 Sep 3 close $4.17 Tue 7 Sept 99 News Release Mr. Leon Daniel reports Ivanhoe Energy Inc., has acquired a significant portfolio of royalty interests on properties in the southern San Joaquin Valley, Calif., an area that is becoming the focus of extensive deep-gas exploration activity. The portfolio will form the nucleus of an operating subsidiary within Ivanhoe Energy. The subsidiary will also hold previously acquired royalty interests on future production from lands in the San Joaquin Valley, and will pursue additional royalty acquisitions. The portfolio includes overriding royalty interests ranging from 1.375 per cent to 6.883 per cent on prospects within an area of more than 80,000 acres in the San Joaquin Valley. Ivanhoe Energy holds working interests on many of the properties in the portfolio and the royalties significantly increase the company's commercial stake in the holdings. Ivanhoe Energy purchased royalty interests for $860,000 (U.S.) in cash and 1,561,352 Ivanhoe shares and obtained an option to acquire royalty interests for $1.5-million (U.S.), payable in cash or shares, at the company's option, on or before March 1, 2000. "The key characteristic of overriding royalties is that they are calculated as a percentage of gross production. There are no deductions for production, transport or storage costs, and the royalty rights exist for as long as there is economic production," Mr. Martin said. Leon Daniel, president of Ivanhoe Energy, welcomed the vendors of the royalties as significant shareholders of the company. "Our new shareholders had the foresight to acquire an important package of royalty rights over a period of years, starting long before investors paid attention to the area's deep-gas potential. They have been working in the San Joaquin Valley for 35 years, developing a professional knowledge of the geology and establishing personal contacts with landowners and the firms engaged in exploration and production. Ivanhoe Energy's expanded group has a sustainable competitive advantage in its drive to acquire further royalties." Ivanhoe Energy and its partners are gathering supplementary seismic data on acreage at Lost Hills in preparation for the drilling of an initial well as part of a scheduled exploration program targeting selected prospects in the San Joaquin Valley. Ivanhoe Energy plans to release additional information on its exploration and development programs later in the current fiscal quarter. (c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com