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.