Ivanhoe Discovers New Pool at the South Belridge Field

Ivanhoe Energy has tested oil and gas from the Stevens sand at its joint-venture exploration well, the Sledge Hamar 1-7, adjacent to the South Belridge oil field in central California's San Joaquin Basin. "We believe that the discovery may be significant and will support further drilling."

The well is a new pool discovery and is pumping to a sales facility at a rate of 42 barrels of 34 degree API gravity oil per day, with 58 Mcf per day of associated gas. This type of lighter oil currently receives a price comparable to WTI (US$34.00 per barrel), while gas prices in California are currently very strong.

The well was drilled to a depth of 5,704 feet and encountered shows of oil and gas in several intervals of the Stevens sand and the shallower Diatomite zones. The untested zones will be appraised in future wells to determine the overall extent of this discovery.

The Sledge Hamar well is in a 900-acre lease block near the South Belridge Field. Participants in the well are operator Nahabedian Exploration Group, 50%; Ivanhoe Energy (USA) Inc., 40%; and Orchard Petroleum Inc., 10%.