Ivanhoe to Sell LAK Ranch Interest
Ivanhoe Energy Inc. intends to sell its interest in the LAK Ranch field in Weston County, Wyoming to its partner Derek Oil & Gas Corporation. After review of 3-D seismic results and pilot production, Ivanhoe Energy has determined that this project is not large enough to support a heavy oil upgrading facility based on Ivanhoe Energy's proprietary HTL upgrading technology and does not fit with the company's principal strategy of deploying capital to further the development of the HTL technology.
Ivanhoe Energy has reached an agreement to sell its interest in the LAK Ranch Project to Derek Oil & Gas for US$800,000, comprised of US$600,000 due at closing and US$200,000 to be paid through a 5% gross overriding interest on future production from the LAK Ranch Project. The 5% royalty arrangement will terminate once US$200,000 has been paid. The agreement is subject to the negotiation of definitive documentation and Ivanhoe Energy and Derek Oil & Gas board approvals.
Ivanhoe Energy is an independent international oil and gas development and production company focused on pursuing long-term growth in its reserve base and production using key technologies, including its proprietary heavy oil upgrading process (HTL), enhanced oil recovery (EOR) techniques and the conversion of natural gas to liquids (GTL). Core operations are in the United States and China, with business development opportunities worldwide. Ivanhoe Energy trades on the NASDAQ Capital Market with the ticker symbol IVAN and on the Toronto Stock Exchange with the symbol IE.
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- Ivanhoe Inks MOU for China Block Sale (Jan 11)
Company: Derek Oil and Gas more info
- Derek: Steam Injection Begins at LAK Ranch (May 15)
- Derek Reports Successful LAK Ranch Drilling (Apr 25)
- Derek Announces LAK Ranch Progress (Mar 22)