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Ivanhoe Energy Inc. Message Board

  • montecinc montecinc May 29, 2014 2:42 PM Flag

    IVAN & Block 20 in WSJ

    Below is from a 2/10/14 article in WSJ that I am sure most of you have seen it. My questions are:
    1) Reading this report, can they still side-step IVAN out of this deal?

    2) If IVAN is still in, would the $37/bbl service agreement still be valid?

    3) With such near-term positive huge potential, then why is the stock hammered all the way down to $0.40?

    QUITO, Ecuador–President Rafael Correa’s government is analyzing proposals from China to expand its oil operations in Ecuador, Minister for Strategic Sectors Rafael Poveda said Monday.

    National Petroleum, or CNPC, China’s largest oil and gas producer, is interested in the Sacha and Auca oil fields as well as block 31 and block 20, operated by Ecuador’s state-run company, Petroamazonas.

    The CNPC is also set to carry out a joint venture with state-owned Petroecuador and Venezuela’s state-owned PdVSA to build the refinery known as Refineria del Pacifico.

    The government expects to close next month a $7 billion financing deal for that refinery with the Industrial & Commercial Bank of China Ltd. (IDCBY, 1398.HK, 601398.SH)

    Petroecuador has a 51% stake in the refinery project, with 49% held by PdVSA. CNPC is expected to take a 30% stake while PdVSA could reduce its participation.

    If the final agreement with CNPC is reached, 30% of the funds needed to build the refinery will come from the three partners.

    “CNPC will be our partner in Refineria del Pacifico and has expressed interest in expanding its relationship with Ecuador,” said Mr. Poveda.

    A part of block 31 is located in the Yasuni National Park, while block 20 includes the Pungarayacu field with reserves of heavy oil, operated by Canada’s Ivanhoe Energy Inc.(IVAN)

    Sentiment: Strong Buy

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    • 1) Ivanhoe will definitely be in the new deal.

      2) Service agreement will be renegotiated, given the results so far from the work Ivanhoe did in Block 20 and the new partner, CNPC.

      3) Company is short of cash and some people do not think the deal will be done before they are out of money. Bad thinking, as RF will not let the company run out of cash, if needed he will provide a $25M interim loan, like what he did before. Once the deal is announced the stock will be over $3.00.

      Buy Now or Cry Later, the choice is yours!

    • Just my guess, 1. yes there is a chance IVAN could be cut out, but EC would have to pay IVAN for the work done. 2. If IVAN is still in, the service agreement will probably have to be rewritten. 3. Why are we in the the 40 cents? Because this company has gotten NOTHING done year after year after,,,, well heck let's just call it a decade now. Could news come out next month and IVAN jump, yes but it needs to be soon, without news of a deal I think IVAN just drifts to new lows.

0.290.0000(0.00%)Feb 27 3:59 PMEST