Proceeds to energize short-term project activities
Note: All figures are quoted in U.S. dollars unless otherwise noted.
CALGARY, March 15, 2012 /CNW/ - Ivanhoe Energy Inc. (TSX: IE; NASDAQ:
IVAN) today announced it entered into a $50 million short-term secured
credit agreement consisting of an initial tranche of $30 million, fully
underwritten by UBS AG, Canada Branch. The agreement also contains a
$20 million accordion feature that can be exercised by the company, if
The loan, which was exclusively arranged by UBS Securities, will mature
after 12 months and involves customary terms and covenants for a
transaction of this nature.
"Ivanhoe Energy has established this short-term loan as an interim
measure while we finalize longer term arrangements, currently underway,
that are applicable and appropriate for our projects. This loan will
fund activities in Ecuador, China, Mongolia, Canada and other selected
areas of business development," said President and Chief Operating
Officer, David Dyck.
Ivanhoe Energy is an independent international heavy oil exploration and
development company focused on pursuing long-term growth in its
reserves and production. Core operations are in Canada, Ecuador, China
and Mongolia, with business development opportunities worldwide.
Ivanhoe Energy trades on The Toronto Stock Exchange with the ticker
symbol IE and on the NASDAQ Capital Market with the ticker symbol IVAN.
For more information about Ivanhoe Energy 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 concerning the potential benefits of
Ivanhoe Energy's heavy oil upgrading technology, the potential for
commercialization and future application of the heavy oil upgrading
technology and other technologies, statements relating to the continued
advancement of Ivanhoe Energy's projects, the potential for successful
exploration and development drilling, dependence on new product
development and associated costs, statements relating to anticipated
capital expenditures, the necessity to seek additional funding,
statements relating to increases in production 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, new
product development will not proceed as planned, the HTL technology to
upgrade bitumen and heavy oil may not be commercially viable,
geological conditions in reservoirs may not result in commercial levels
of oil and gas production, the availability of drilling rigs and other
support services, uncertainties about the estimates of reserves, the
risk associated with doing business in foreign 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 2011 Annual Report on Form 10-K filed with the U.S. Securities
and Exchange Commission on EDGAR and the Canadian Securities
Commissions on SEDAR.