July 15, 2008
Ivanhoe Acquires Athabasca Oilsands Assets From Talisman Energy
Ivanhoe Energy has acquired Talisman Energy Canada's 100% working interests in two leases located in the Athabasca oilsands region in the Province of Alberta, Canada.
The total purchase price is C$90 million, of which an initial payment of C$22.5 million has been made from proceeds of a C$88 million private placement financing.
The financing, consisting of C$3 special warrants and originally targeted at C$50 million, was increased to C$88 million due to significantly increased expressions of interest from institutional investors.
The acquisition of Lease 10 will provide the site for the first commercial application of Ivanhoe's proprietary, HTL heavy-oil upgrading technology in a major, integrated heavy-oil project. Lease 6 is a small, undelineated, 680-acre block 1.6km south of Lease 10.
Based on these contingent resource estimates, Ivanhoe's acquisition price of C$90 million represents a price of approximately C$0.37 per barrel of contingent bitumen resource measured on a best-estimate basis, with a range of approximately C$0.29 per barrel on a high-estimate basis to approximately C$0.48 per barrel on a low-estimate basis.