Ivanhoe Energy Sells China Project to Shell (IVAN, RDS-A)
Canadian oil & gas company Ivanhoe Energy Inc. (NASDAQ: IVAN) has sold 100% of its stake in a production sharing contract in a Chinese natural gas project. Royal Dutch Shell plc (NYSE: RDS-A) has agreed to pay $160 million and…
Canadian oil & gas company Ivanhoe Energy Inc. (NASDAQ: IVAN) has sold 100% of its stake in a production sharing contract in a Chinese natural gas project. Royal Dutch Shell plc (NYSE: RDS-A) has agreed to pay $160 million and assume a $20 million performance bond when the sale is completed.
The sale includes Ivanhoe’s stake in the Zitong block in China’s Sichuan basin, a tight-gas play that the company developed last year.
Ivanhoe expects the transaction to be completed by the end of December 2012. The company said it will use the proceeds from the sale “to focus our energy and resources on the commercialization of our Heavy-to-Light (HTL) heavy oil upgrading process and the development of our attractive oil projects.”
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
