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Gold/Mining/Energy : IVAN - Ivanhoe Energy -- Ignore unavailable to you. Want to Upgrade?

To: TheSlowLane who wrote (66)	11/10/2003 6:34:59 PM
From: Pluvia	Respond to of 271

from oct 31 IVAN reg statement "Sunwing is a party to an alliance agreement with CITIC Energy to seek out and develop oil and gas projects in China and around the world. CITIC Energy is a subsidiary of China International Trust & Investment Corporation, a major Chinese state-owned, multi-industry enterprise. Under the agreement, CITIC will assist Sunwing in raising its profile in Asian capital markets and gaining access to future financing opportunities. CITIC Energy will also assist Sunwing in its efforts to obtain a production-sharing contract covering the Yudong Block in Sichuan Province. Should such a contract be obtained, Sunwing and CITIC will jointly participate on a 70/30 basis. Within 180 days thereafter, either party can elect to convert CITIC’s 30% project interest into a 20% equity interest in Sunwing. In turn, Sunwing will assist CITIC in identifying and acquiring interests in international oil and gas development projects and in introducing GTL and other advanced technologies to China’s oil and gas industry."

To: TheSlowLane who wrote (66)	11/10/2003 6:45:19 PM
From: Pluvia	Respond to of 271

1. IVAN has several deals to develop oil/gas in china, but IVAN is required to fund the development. 2. Specifically IVAN is required to fund around 219mm over the next 3 years to keep these deals. With wildcat drilling as with the other dry holes IVAN's drilled in TX and California, in china they have to raise the money and take the risk of losing it all. ok maybe "they" just raise the money, the bagholder.. errr shareholder takes the risk=) 3. IVAN does not have $219mm 4. Nobody in their right mind will fund IVAN for $219mm - it's already diluted and overpriced. 5. So, friedlands options are try to Spin off Sunwing, try to do an IPO, try to hype this or that to raise big money. HIs challenge will be trying to do that when he's known to be a promoter and for the last 7yrs his IVAN energy has been unable to execute a business plan... If IVAN want's to continue to develop oil & gas and keep their china agreements, they have to raise a big pile of cash somehow... here's the info from the oct 30 sec filing re: cash needs to play in china: sec.gov Sunwing continues to pursue enhanced oil recovery initiatives and larger gas opportunities in China. Sunwing’s producing asset in China is a 20-year production-sharing contract covering an area of 22,400 gross acres divided into six blocks in the Kongnan oilfield in Dagang, Hebei Province, China (the “Dagang Project”). Under the contract, Sunwing operates the project and funds 100% of the development costs to earn 82% of the net revenue from oil production until cost recovery, at which time Sunwing’s entitlement reverts to 49%. In May 2003, Sunwing’s Overall Development Program for the Dagang Project was approved by Chinese regulatory authorities. The Plan contemplates expenditures of approximately $185 million over a three-year period and will involve drilling 115 new wells and reworking an additional 29 of the 82 existing wells. Sunwing also holds a production-sharing contract covering an area of approximately 900,000 gross acres divided into two blocks in the Sichuan Basin approximately 930 miles southwest of Beijing. Under the contract, Sunwing has agreed to conduct an exploration program on the Zitong blocks consisting of two phases, each three years in length. During the first phase, Sunwing must incur minimum expenditures of $18 million and additional expenditures of at least $16 million during the second phase.