Ivanhoe Energy's (IVAN) Interest in China's Zitong Block to be Sold for Cash Proceeds of $160M
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Ivanhoe Energy's (Nasdaq: IVAN) Sunwing Zitong Energy has signed an agreement to 100 percent of its interest in China's Zitong Block to Royal Dutch Shell unit for cash proceeds of $160 million.
In exchange for SZE's interest in the Zitong block, Ivanhoe will receive a payment of up to $85 million as reimbursement for past qualified and recoverable costs incurred. In addition, Ivanhoe will receive a further payment upon closing of up to $75 million, contingent on the timing of the receipt of full government approvals and third-party consents and waivers for the transaction.
Following completion of the transaction, Shell will assume the $20 million performance bond that Ivanhoe Energy was required to recently post as part of the completion and signing of the Supplementary Agreement with the China National Petroleum Corporation.
In exchange for SZE's interest in the Zitong block, Ivanhoe will receive a payment of up to $85 million as reimbursement for past qualified and recoverable costs incurred. In addition, Ivanhoe will receive a further payment upon closing of up to $75 million, contingent on the timing of the receipt of full government approvals and third-party consents and waivers for the transaction.
Following completion of the transaction, Shell will assume the $20 million performance bond that Ivanhoe Energy was required to recently post as part of the completion and signing of the Supplementary Agreement with the China National Petroleum Corporation.
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