CALGARY, Sept. 13, 2011 /PRNewswire via COMTEX/ --
David Dyck, President and Chief
Operating Officer of Ivanhoe Energy Inc.
CA:IE
-1.36%
IVAN
-0.67%
, and
Gerald Moench, President of Ivanhoe's wholly-owned subsidiary Sunwing
Energy Ltd., announced today that Ivanhoe's drilling team has begun
moving the drilling rig to the site of the second exploration well in
east-central Mongolia.
"Our drilling program was designed to advance our knowledge of
Mongolia's Nyalga Basin, a highly prospective area with numerous
potential structures that could be tested by drilling," Mr. Dyck said.
"These initial wells are testing two different structures with diverse
seismic characteristics."
Mr. Dyck said testing has been completed at the first exploration well,
N16-1E-1A, which was drilled to a depth of 2,003 metres. The first well
has been plugged and abandoned and the rig disassembled for
mobilization.
"While the testing of our first well did not encounter oil shows in the
reservoir, it has provided vital information that we are combining with
our seismic data to help guide our continuing drilling program."
The second well is on an eight-square-kilometre structure approximately
12 kilometres from the first well. Drilling of the second well is
expected to begin by the end of this month toward a target depth of
approximately 2,500 metres.
"Mongolia in general, and the Nyalga Basin in particular, is in the
early days of oil exploration, requiring a great deal of study to
understand its full potential. We remain optimistic that our
exploration efforts will enable the discovery of oil resources at our
Mongolian project," Mr. Dyck added.
Sunwing Energy Ltd. is party to a Production-Sharing Contract with the
Mongolian Government for Block XVI, a 12,679-square-kilometre area that
encompasses the Nyalga Basin and is adjacent to the north-south
Trans-Mongolian Railway.
Ivanhoe Energy is an independent international heavy oil development and
production company focused on pursuing long-term growth in its reserves
and production using advanced technologies, including its proprietary
heavy oil upgrading process (HTLTM). Core operations are in Canada, United States, Ecuador, China and
Mongolia, with business development opportunities worldwide. Ivanhoe
Energy trades on The Toronto Stock Exchange with the symbol IE and on
the NASDAQ Capital Market with the ticker symbol IVAN.
For more information about Ivanhoe Energy Inc. please visit
www.ivanhoeenergy.com .
FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements, including
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements include, but
are not limited to, statements relating to the continued advancement of
Ivanhoe Energy's projects, the potential for successful exploration and
development drilling, statements relating to establishing resources and
other statements which are not historical facts. When used in this
document, the words such as "could," "plan," "estimate," "expect,"
"intend," "may," "potential," "should," and similar expressions
relating to matters that are not historical facts are forward-looking
statements. Although Ivanhoe Energy believes that its expectations
reflected in these forward-looking statements are reasonable, such
statements involve risks and uncertainties and no assurance can be
given that actual results will be consistent with these forward-looking
statements. Important factors that could cause actual results to
differ from these forward-looking statements include the potential that
the Company's projects will experience technological and mechanical
problems, geological conditions in reservoirs may not result in
commercial levels of oil and gas production, the availability of
drilling rigs and other support services, the risk associated with
doing business in foreign countries including the risk that legislative
changes could adversely affect the commercial viability of carrying on
business in those countries, environmental risks, changes in product
prices, our ability to raise capital as and when required, competition
and other risks disclosed in Ivanhoe Energy's 2010 Annual Report on
Form 10-K filed with the U.S. Securities and Exchange Commission on
EDGAR and the Canadian Securities Commissions on SEDAR.
SOURCE Ivanhoe Energy Inc.
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