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Ivanhoe to transfer China's Zitong Block

12/6/2012 12:55:39 PM | Stockhouse Editorial

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The Ministry's approval for the Block transfer was received on Nov. 28, 2012.

Ivanhoe Energy Inc. (TSX: T.IE, Stock Forum) said that its subsidiary, Sunwing Zitong Energy, has received approval from the Ministry of Commerce of the People's Republic of China to transfer its participating interest in the contract for exploration, development and production in the Zitong Block, Sichuan Basin, to Shell China Exploration and Production Co.

According to the Ivanhoe Energy press release, the Ministry's approval was received on Nov. 28, 2012, setting the stage for the company to increase its pre-tax working capital by USD$105 million.

To complete the transfer Sunwing and Shell will finalize a number of administrative matters within the next two weeks, as per the definitive sale and purchase agreement.

Ivanhoe Energy is an independent international heavy oil exploration and development company focused on pursuing long-term growth in its reserves and production using advanced technologies, including its proprietary heavy oil upgrading process.

On Thursday morning, Ivanhoe Energy was up 12% and was trading at $0.46 a share. The company has a market cap of $158.3 million, based on 344.1 million shares outstanding. The 52-week high and low was $1.34 and $0.405 respectively.

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