did you listen to the CC? They want the whole kit and kaboodle. They have the tech, and they want to land to use it on as well, as time goes forward. They're using the tech to buy land rights, and as time goes by, they'll use cash to buy the land on top of the oil instead of just the oil rights.
This company has a very strategic plan to use what they got to get more. And more and more and more.
China's CITIC Group to invest in Ivanhoe Energy as part of quest to secure international energy resources.
10:03 EST Tuesday, February 21, 2006
Ivanhoe increases working interest in China's Dagang oilfield block to 100%. Sunwing Energy, Ivanhoe's Chinese oil and gas subsidiary, to seek public listing.
BEIJING, CHINA, Feb. 21 /CNW/ - Ivanhoe Energy Inc. (NASDAQ: IVAN and TSX: IE & IE.U) and CITIC Resources, a subsidiary of CITIC Group (formerly China International Trust & Investment Corporation), announced today that CITIC Resources has made an important investment decision to convert its 40% working interest in the Kongnan Project in China's Dagang oilfield into shares of Ivanhoe Energy.
Consideration for this acquisition totals approximately US$27,386,135, to be settled with US$20 million in Ivanhoe Energy common shares and a US$7,386,135 non-interest-bearing, three-year, monthly-amortizing loan. CITIC Resources will acquire 8,591,434 common shares of Ivanhoe Energy at a price of US$2.33 per share. This will represent approximately 3.7% of Ivanhoe's issued and outstanding shares following the completion of the transaction. The loan will be convertible, at Ivanhoe Energy's discretion, into common stock of Sunwing Energy Ltd. when Ivanhoe obtains a public listing for Sunwing to further daylight value and expand the growth of the subsidiary.
The agreement to jointly develop the Kongnan Project was signed by an Ivanhoe Energy subsidiary and CITIC Group in January 2004. The agreement gave CITIC Group the right to convert its participating interest in the Kongnan Project into Ivanhoe common shares. Now, CITIC Group and Ivanhoe have agreed to expand their long-standing cooperation as Ivanhoe continues to develop oil and gas opportunities in China and sharpens its focus on acquiring international reserves and production through its leading edge, heavy-oil-to- light-oil (HTL) and gas-to-liquids (GTL) technologies - which are of particular interest to CITIC Group.
Sunwing Energy Ltd., Ivanhoe's 100%-owned subsidiary dedicated to oil and gas exploration and production in China, will acquire CITIC Resources' 40% working interest in the Kongnan Project. This will increase Sunwing's working interest in the Kongnan Project to 100%, and will increase Sunwing's gross production in China by 67%, to more than 2,050 barrels of oil per day (net 1,681 barrels of oil per day).
"This transaction strengthens Ivanhoe's excellent, longstanding relationship with CITIC Group," said Robert Friedland, Chairman of Sunwing Energy and Vice Chairman of Ivanhoe Energy. "We welcome CITIC as a strategic shareholder and as a potential partner in new energy ventures inside China and in markets around the world, where our technologies will be key to securing and expanding production from heavy-oil reserves and stranded natural gas. In addition, Sunwing's increased ownership of Dagang oil production will provide us with critical mass and stronger positive cash flow, enhancing our financial independence and our position as one of the first - and still one of the few - foreign producers of sweet crude oil on the Chinese mainland - one of the world's most important energy markets."
Wang Jun, Chairman of CITIC Group said: "With the conversion of CITIC Resources' working interest in the Kongnan Project, CITIC will have an exposure to all of Ivanhoe's global operations and not just on the Dagang oilfield. We are looking forward to further developing our relationship with Ivanhoe in new energy ventures that hold a mutual interest for CITIC and Ivanhoe in China and in other countries around the world."