Ivanhoe Energy to invest $52 million in 65 U.S., China wells in 2004

Ray Tyson

Petroleum News Houston correspondent

Small independent Ivanhoe Energy this year plans to participate in 65 wells in the United States and China, Ivanhoe Chairman David Martin said March 29, adding that the company’s investment would be $52 million versus $14.6 million spent on wells last year.

He said three of the 65 wells already have been drilled and the company plans to participate in the drilling of 62 new wells over the balance of the year, of which 46 are development wells and 16 are exploration or appraisal wells.

In California, Ivanhoe plans to participate in development wells at the South Midway Sunset, Citrus and Sledge Hamar properties in the San Joaquin Basin and at the Knight’s Landing project in the Sacramento Basin. In Wyoming, Ivanhoe plans to begin drilling at the LAK Ranch project in the Powder River Basin in the second quarter of 2004. Internationally, Ivanhoe said it plans to participate in the drilling of 15 additional development wells at the Dagang field in China’s Bohai Bay.

On the exploration front, Ivanhoe plans to drill in the San Joaquin and Sacramento basins in California, in East Texas and in China’s Sichuan basin.

“We expect that the 2004 program will substantially increase our daily production of oil and gas by year end, generate recurring cash flow and add value to the company,” Martin said. “The development program will be funded by the company’s recent equity financing, by funding agreements with third parties and by internally generated cash.”