Drilling Commenced at Sunwing's 1st Mongolian Exploration Well

Ivanhoe and Sunwing announced that N16-1E-1A, Sunwing's first exploration well on its Nyalga Block XVI in Mongolia, spudded Saturday, August 13. As of Tuesday, the well has been drilled to 437m and surface casing has been run and cemented.

"This is an important step in our exploration program in Mongolia," said David Dyck, President and COO of Ivanhoe. "Given the results of our 2D seismic study, we are optimistic of the potential to discover oil resources in Mongolia."

The well is located on a structure approximately 32 km2 in size and will be drilled to a total depth of approximately 2500m. The well is being drilled by the Daqing Exploration Company and drilling of the well will take approximately 30 days, with completion and testing to be carried out as required. The Company intends to drill two wells on two separate structures, with the option to drill up to three additional wells in this initial exploratory program.

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