Ivanhoe Energy Sells US Operations for $40m

20 July 2009 (Last Updated July 20th, 2009 18:30)

Heavy-oil development and production company Ivanhoe Energy said that it sold all of its US oil and gas operations to a segment of National Fuel Gas for about $40m. Ivanhoe said that net proceeds - after repayment of debt and transaction expenses - of about $34m will be used to advance

Heavy-oil development and production company Ivanhoe Energy said that it sold all of its US oil and gas operations to a segment of National Fuel Gas for about $40m.

Ivanhoe said that net proceeds - after repayment of debt and transaction expenses - of about $34m will be used to advance the initial stages of its heavy-oil projects Tamarack in Western Canada and Pungarayacu in Ecuador.

The company said that its "key heavy-oil experts" based at US operations will be redeployed to work on the Tamarack or Pungarayacu projects.

Shares of Vancouver-based Ivanhoe closed at C$1.49 on Friday on the Toronto Stock Exchange, Reuters wrote.