NYSE:IVAN.WS - Post by User
Comment by
trader2dayon Sep 03, 2014 2:45pm
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Post# 22902447
RE:so are the
RE:so are theThe CNOC could buy Ivanhoe Energy in a heart beat. The question is will the Canadian Government approve a deal being it would be a Foreign country take over and the Government of Canada would review the process and agree to a take over or not accept it.
That is speculation on my part though of any take over.
As for the Block 20 deal it is a 3 way partnership.. Ecuador / Ivanhoe Energy/ CNOC for developing that massive 6 billion barrel heavy oil resource. The Chinese want Ivanhoe on board because of the HTL patented process they hold to make the project viable and more profitable getting higher prices for each barrel of oil changed from heavy to light oil is the magic here. Also the Chinese would then again be part of the Canadian Oil sands project like another chinese company had bought Talisman and their oil sand block. That is a two way win for China who needs the oil to drive their energy driven economy forward and expand in to foreign energy markets.
It is all math and calculations what way is the better way for the Chinese. Take over Ivanhoe then the Chinese not only have the HTL technology under their belt but they have the people behind the expertise working for them also if they stay on board that is?
The biggest energy kid on the block is the USA that surpassed the Arabs oil production from introducing fracking oil extraction and other domestic production methods back in 2005. USA is now the world leader for production and my next year in 2015 they will have so much oil production they will be able to export it for the first time in a very long history of energy importing.
Canada's oil sands which Ivanhoe Energy also is mid size player in will still be part of the overall USA energy policy under the present Obama administration in Washington with Canadian oil being exported to the USA at record levels now in 2014.
Now what will the Block 20 new deal be for Ivanhoe with the Ecudorian Government? This will not be known till the 3rd quarter Ivanhoe has estimated but an earlier decision could happen from the sounds of it.
I see no way the Chinese would drop Ivanhoe out of the project because they are not the owners of the oil.. The Ecudorians are the owners of the oil resource and players answer to them only for access to working and production rights.
As for the stock price it fluctuates up and down as markets alway do and have done in the past but the price always returns to the 50 day moving average from being down over springing back from a sharp rise as we saw on Friday. Now with todays low i expect the opposite and a spring back up over the 50 DMA heading back up to the 200 DMA before once again spring back down.
All stocks do this and it is up to the investor to know when to jump in and out to take profits along the way,