Yixin-2 gas well discovery ready for fracture stimulation
The Yixin-2 well has been prepared for fracture stimulation, which is scheduled for late April and is contingent upon securing the necessary service equipment. Following fracture stimulation, production testing at the Yixin-2 well will determine optimal rates for long-term production.
"With a successful fracture stimulation program, and following initial testing, the wells will be available to be tied-in to the local gas-gathering system, which will allow for longer-term performance monitoring and sales," said Mr. Moench. "Tie-in facilities are within approximately two kilometres of both wells and can be accomplished within a short time frame and for minimal capital cost, and we expect these activities to culminate in reported production and associated cash flow in 2011."
Provisional overall development plan underway for Zitong BlockSunwing Energy is preparing a provisional, overall development plan for the Zitong Block and expects to submit this plan to PetroChina by the end of June 2011. The plan will provide PetroChina with a conceptual overview of the development activity that Sunwing Energy proposes to undertake to develop the natural gas opportunities across the Zitong Block. Sunwing is the operator of the 659,840-acre (1,031-square-mile) Zitong exploration block in Sichuan and holds a 90% interest in a Petroleum Contract with PetroChina Company Limited. Mitsubishi Gas Chemical Company, of Japan, holds the remaining 10% interest. Ivanhoe Energy Inc. 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, patented heavy-to-light upgrading process (HTL™). Core operations are in Canada, Ecuador, China and Mongolia, with business development opportunities worldwide. Ivanhoe's shares trade on the NASDAQ Capital Market with the ticker symbol IVAN and on the Toronto Stock Exchange under the symbol IE. For more information about Ivanhoe Energy Inc., please visit our web site at 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 concerning the anticipated timing and results of planned fracture stimulation and further evaluation and testing of the Yixin-2 and Zitong-1 well, the future tie-in of the Zitong Block wells to the local gas-gathering system and other statements which are not historical facts. When used in this document, the words such as "could", "plan", "estimate", "anticipate", "intend", "may", "potential", "should" "expect", and similar expressions relating to matters that are not historical facts are forward-looking statements. Although Ivanhoe Energy and Sunwing Energy believe that their 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 possibility that the company will be unable to raise financing, the potential that the company's projects will experience technological and mechanical problems, geological conditions in reservoirs may not result in commercial levels of gas production, the availability of drilling rigs and other support services, , the risk associates with doing business in foreign countries, environmental risks, changes in product prices, our availability to generate cash flow and raise capital as and when required, competition and other risks disclosed in Ivanhoe Energy's 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.