China
Ivanhoe Energy has been conducting operations in China since the mid 1990s, through its wholly-owned subsidiary Sunwing Energy Ltd. Its operations are focused on two projects: 1) The Zitong Project, a gas exploration project located in Sichuan Province in Central China; and 2) the Dagang Project, a light-oil operation located in the northeast of China. Sunwing is the operator of both projects.During its 14-year history, Sunwing has signed three Production Sharing Contracts and has drilled over 50 exploration and development wells to depths ranging from 1500 meters to 4500 meters. Sunwing maintains a royalty interest in the revenue stream from its first project carried out in the Daqing Oil Field.
Dagang Project
The Dagang Project is an oil development project in Dagang, China's sixth largest oil field, situated 100 km southeast of the municipality of Tianjin in Hebei province. Sunwing, operating as Pan-China Resources Ltd., has a 100% participating interest in the Dagang Project. Pan-China is operator of the project and funds all development costs to earn 82% of the net revenue from oil production until costs are recovered, at which time Pan China's shared entitlement will revert to 49%. Pan-China is paid in U.S. dollars for its oil, based on international market prices.Sichuan Project
Sunwing, operating as Pan-China Resources Ltd., has a 90% participating interest inthe Sichuan Project and Mitsubishi Gas Chemical Company Inc. of Japan has a 10% interest (together, the "Zitong Partners"). Pan-China is operator of the project. The Zitong Partners fund all development costs to earn approximately 80% of the net revenue from oil production until costs are recovered, at which time their shared entitlement will revert to approximately 45%.
The original contract, signed in 2002, was a 30-year production-sharing contract with PetroChina covering approximately 900,000 acres. The contract has progressed and currently covers an area of approximately 675,000 acres, with an estimated potential natural-gas resource of up to five trillion cubic feet.
The original contract, signed in 2002, was a 30-year production-sharing contract with PetroChina covering approximately 900,000 acres. The contract has progressed and currently covers an area of approximately 675,000 acres, with an estimated potential natural-gas resource of up to five trillion cubic feet.
Gas exploration in Zitong, Sichuan Province
Sunwing Energy produces light oil in Dagang, just South-east of Beijing.
