Company Makes Progress Executing Business Plan
Note: All figures are quoted in U.S. dollars unless otherwise noted.
CALGARY, May 9, 2013 /CNW/ - Ivanhoe Energy Inc. (TSX: IE; NASDAQ: IVAN)
reported today its financial results and operating highlights for the
first quarter of 2013.
First Quarter Financial Summary
Ivanhoe Energy filed its quarterly financial report on Form 10-Q with
the U.S. Securities and Exchange Commission and its Interim Financial
Statements with the Canadian Securities Administrators for the period
ended March 31, 2013.
ended Mar. 31,
(US$000s, except per share amounts) (unaudited)
Net loss from continuing operations
Net loss per share, from continuing operations*
Net cash used in operating activities
Cash and cash equivalents (end of period)
* Basic and diluted
** Net loss per share from continuing operations does not reflect the
common share consolidation, which took effect April 25, 2013.
In the first quarter of 2013, the Company posted a net loss from
continuing operations of $12.0 million, which was $1.1 million higher
compared to $10.9 million in the same period in 2012. This increase in
2013 is mainly attributable to higher general and administrative
expenses related to staff and legal costs partially offset by higher
foreign currency exchange gains and deferred income tax recoveries.
Capital expenditures were $7.5 million in the first quarter of 2013,
which include the following highlights:
The Canadian operation invested $4.9 million on a winter data
acquisition program that included seismic and drilling activities. The
data will provide further information for initial development,
including determining optimal well pair locations.
The Ecuadorian operation invested $1.8 million on environmental and road
work in preparation for drilling a new appraisal well.
In Mongolia, the Company exhausted a credit held with a seismic service
provider and conducted a 106 kilometer 2-D seismic program, without the
expenditure of cash.
General and Administrative Expenses
General and administrative ("G&A") expenses in the first quarter of 2013
were $12.7 million, compared to $8.3 million incurred during the same
period in 2012. The Q1 2012 amount of $8.3 million includes a reclassification of $2.2
million associated with Sunwing discontinued operations; without that
reclassification, the previously reported Q1 2012 amount was $10.5
million. The increase in G&A related to continuing operations includes
higher legal fees, Asian staff severance and retention payments and the
excess of short-term incentive compensation over the 2012 accrual.
Liquidity and Capital Resources
At the end of the first quarter 2013, Ivanhoe Energy had approximately
$62.0 million in cash and cash equivalents, as compared to $42.3
million at the end of the same period of 2012. The $62.0 million
includes $20.0 million released from the restricted cash balance
stemming from the completion of the Zitong transaction and associated
release of the cash collateral under the performance bond, which was
assumed by Shell China.
The Company feels this is sufficient liquidity to fund operating
activities in 2013 and into 2014.
Ivanhoe Energy continues to make progress in its efforts to
commercialize HTL. The Company is processing new third-party crudes in
its Feedstock Test Facility in San Antonio, Texas and is also
conducting test runs of HTL Synthetic Crude Oil in a refinery
environment. This work is underway to generate additional data in
support of various partnership discussions. The company has also been
working closely with SBM Offshore on potential offshore projects, and
has published new marketing materials which are available at www.ivanhoeenergy.com.
Tamarack - Canada
As was previously reported in Q1 2013, Ivanhoe Energy received a
Completeness Determination on the Tamarack application from Alberta
Environment and Sustainable Resource Development. Having received
this, the Company then entered the final stages of the regulatory
process, which is working with the Energy Resources Conservation Board
(ERCB) and local stakeholders to resolve concerns identified in the
filed Statements of Concern (SOCs). During Q1 2013 the Company
completed discussions with three stakeholders that operate in close
proximity to, and are most impacted by, the Tamarack Project. The
Company established long-term relationships and agreements with
Northland Forest Products Ltd., the Regional Municipality of Wood
Buffalo, and Fort McMurray No. 468 First Nation. Each of these
stakeholders formally removed their SOCs. The Company continues to
progress discussions with the remaining four stakeholders who have
Ivanhoe Energy is an independent international heavy oil exploration and
development 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 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 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 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, statements relating to the timing and amount
of proceeds of agreed upon and contemplated disposition transactions,
statements relating to anticipated capital expenditures, statements
relating to the timing and success of regulatory review applications,
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 HTLTM 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, our ability to complete
agreed upon and planned asset dispositions, competition and other risks
disclosed in Ivanhoe Energy's 2012 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.
For further information:
Manager, Corporate Communications
(403) 817 1108