China's CITIC Group to Invest in Ivanhoe Energy
Vancouver's Ivanhoe Energy Inc. and Hong Kong's CITIC Resources, a subsidiary of CITIC Group, announced that CITIC Resources has decided to convert its 40% working interest in the Kongnan project in China's Dagang oilfield into shares of Ivanhoe Energy. Consideration for this acquisition by Ivanhoe Energy totals approximately US$27,386,135, to be settled with US$20M in Ivanhoe Energy common shares and a US$7,386,135 non-interest-bearing, three-year, monthly-amortizing loan. CITIC Resources will receive 8,591,434 common shares of Ivanhoe Energy at a price of US$2.33 per share. The agreement to jointly develop the Kongnan project was signed by an Ivanhoe Energy subsidiary and CITIC Group in January 2004. Sunwing Energy Ltd., Ivanhoe's 100%-owned subsidiary in China, will acquire CITIC Resources' 40% working interest in the Kongnan project and increase Sunwing's working interest to 100%.
Information summarized from: Ivanhoe Energy Inc. Press Release