Hanging on the Balance Sheet & News Time Lines
IVANHOE ENERGY INC.
Condensed Consolidated Statements of Loss and Comprehensive Loss
(Unaudited)
|
|
|
|
Three Months Ended
June 30, |
|
|
Six Months Ended
June 30, |
|
| (US$000s, except share and per share amounts) |
|
Note |
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest and other income |
|
|
|
|
19 |
|
|
|
73 |
|
|
|
50 |
|
|
|
90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating |
|
|
|
|
284 |
|
|
|
1,421 |
|
|
|
1,459 |
|
|
|
2,214 |
|
| General and administrative |
|
|
|
|
6,025 |
|
|
|
8,412 |
|
|
|
13,294 |
|
|
|
21,118 |
|
| Depreciation |
|
|
|
|
– |
|
|
|
237 |
|
|
|
125 |
|
|
|
484 |
|
| Foreign currency exchange loss (gain) |
|
|
|
|
1,971 |
|
|
|
(1,589 |
) |
|
|
(40 |
) |
|
|
(2,927 |
) |
| Derivative instruments gain |
|
|
|
|
– |
|
|
|
(86 |
) |
|
|
– |
|
|
|
(176 |
) |
| Finance |
|
|
|
|
1,807 |
|
|
|
915 |
|
|
|
2,849 |
|
|
|
1,433 |
|
| Other expenses |
|
|
|
|
99 |
|
|
|
– |
|
|
|
410 |
|
|
|
– |
|
|
|
|
|
|
10,186 |
|
|
|
9,310 |
|
|
|
18,097 |
|
|
|
22,146 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss before income taxes |
|
|
|
|
(10,167 |
) |
|
|
(9,237 |
) |
|
|
(18,047 |
) |
|
|
(22,056 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Recovery of (provision for) income taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Current |
|
|
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
(41 |
) |
| Deferred |
|
|
|
|
– |
|
|
|
852 |
|
|
|
– |
|
|
|
1,737 |
|
|
|
|
|
|
– |
|
|
|
852 |
|
|
|
– |
|
|
|
1,696 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss and total comprehensive loss from continuing operations |
|
|
|
|
(10,167 |
) |
|
|
(8,385 |
) |
|
|
(18,047 |
) |
|
|
(20,360 |
) |
| Net loss and total comprehensive loss from discontinued operations |
|
3 |
|
|
– |
|
|
|
(1 |
) |
|
|
– |
|
|
|
(2,072 |
) |
| Net loss and comprehensive loss |
|
|
|
|
(10,167 |
) |
|
|
(8,386 |
) |
|
|
(18,047 |
) |
|
|
(22,432 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss per common share, basic and diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| From continuing operations |
|
|
|
|
(0.09 |
) |
|
|
(0.07 |
) |
|
|
(0.16 |
) |
|
|
(0.18 |
) |
| From discontinued operations |
|
|
|
|
– |
|
|
|
(0.00 |
) |
|
|
– |
|
|
|
(0.02 |
) |
|
|
|
|
|
(0.09 |
) |
|
|
(0.07 |
) |
|
|
(0.16 |
) |
|
|
(0.20 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average number of common shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted (000s) |
|
|
|
|
114,824 |
|
|
|
114,824 |
|
|
|
114,824 |
|
|
|
114,736 |
|
Comments & Business Outlook
CALGARY, July 18, 2014 /PRNewswire/ - Ivanhoe Energy Inc. (TSX: IE) (NASDAQ: IVAN) has scheduled a special meeting of shareholders to be held on August 13, 2014. The purpose of the special meeting is to give shareholders the opportunity to approve a proposal to effect a share consolidation or reverse-split as a means of regaining compliance with NASDAQ's minimum bid price requirements prior to September 2, 2014. Details of the proposal are included in the proxy materials mailed to shareholders of record as of July 11, 2014. The proxy materials have also been filed on SEDAR and EDGAR.
The special meeting has been scheduled to preserve the Company's ability to pursue the consolidation proposal as a viable alternative for regaining compliance with NASDAQ's minimum bid price requirements in a timely manner. The schedule allows sufficient time for the dissemination of the proxy materials to shareholders and, if the consolidation proposal is presented to the shareholders at the special meeting and approved, for the Company's post-consolidation common shares to trade on NASDAQ for a sufficient period of time to re-establish compliance prior to the September 2 deadline.
There may be other alternatives that would permit the Company to regain compliance without pursuing the consolidation proposal, such as the successful execution of a business opportunity resulting in a material appreciation of the market price of the Company's common shares, but there is no assurance that any such alternatives will be available in a timely manner. If, for any reason, the Company does not regain compliance with NASDAQ's minimum bid price requirements in a timely manner because shareholders do not approve the consolidation proposal or for other reasons the Company's common shares may become subject to delisting from NASDAQ. If the Company's common shares are ultimately delisted from NASDAQ the Company intends to maintain its current listing on the Toronto Stock Exchange.
CFO Trail
ITEM 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On May 19, 2014, Ivanhoe Energy Inc. (the “Company”) issued a press release announcing the appointment of Greg Phaneuf to the role of Senior Vice President, Finance and Chief Financial Officer, effective June 1, 2014. Prior to Mr. Phaneuf’s nearly four years at the Company in the role of Senior Vice President, Corporate Strategy and Business Development, he was Vice President, Corporate Development for The Churchill Corporation where he led all acquisition and associated fundraising activities. Previous to that, Mr. Phaneuf was Vice President, Finance and Chief Financial Officer of a private energy resource and development company which today has production in excess of 20,000 barrels of oil equivalent per day and Treasurer for Western Oil Sands, where he actively participated in that company's financings, M&A activities and risk management functions. Western ultimately sold to a third party for an enterprise value in excess of $7 billion. Mr. Phaneuf, age 45, holds a Bachelor of Commerce Degree from the University of Saskatchewan and is a member of the Canadian and Alberta Institute of Chartered Accountants and a Chartered Financial Analyst charter holder. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein.
In connection with Mr. Phaneuf’s appointment, the Company and Mr. Phaneuf have agreed to enter into an employment agreement (the “Employment Agreement”). Under the Employment Agreement, Mr. Phaneuf will receive Cdn.$350,000 per year (the “Base Salary”), effective June 1, 2014, and will be eligible to receive payments for meeting certain performance incentives related to projects of the Company. Mr. Phaneuf will remain eligible for discretionary annual awards for incentive compensation under his existing employment agreement with the Company. Mr. Phaneuf will also, subject to the approval of the Board of Directors of the Company, receive an initial grant of incentive stock options exercisable to purchase up to 200,000 common shares of the Company pursuant to the Company’s Employees’ and Directors’ Equity Inventive Plan (the “Plan”) at a price per common share determined in accordance with the terms of the Plan.
Comments & Business Outlook
|
|
|
|
|
Year Ended December 31,
|
|
|
(US$000s, except share and per share amounts)
|
|
Note
|
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other income
|
|
|
|
|
|
427 |
|
|
|
28 |
|
|
|
572 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
|
|
|
|
4,426 |
|
|
|
4,252 |
|
|
|
4,561 |
|
|
General and administrative
|
|
|
|
|
|
38,068 |
|
|
|
31,149 |
|
|
|
38,579 |
|
|
Exploration and evaluation
|
|
|
7 |
|
|
|
15,381 |
|
|
|
22,994 |
|
|
|
2,774 |
|
|
Impairment of intangible assets
|
|
|
7 |
|
|
|
92,153 |
|
|
|
– |
|
|
|
– |
|
|
Impairment of property, plant and equipment
|
|
|
8 |
|
|
|
8,943 |
|
|
|
– |
|
|
|
– |
|
|
Depreciation
|
|
|
8 |
|
|
|
1,014 |
|
|
|
961 |
|
|
|
1,014 |
|
|
Foreign currency exchange (gain) loss
|
|
|
|
|
|
|
(3,656 |
) |
|
|
1,247 |
|
|
|
(534 |
) |
|
Derivative instruments gain
|
|
|
10 |
|
|
|
(177 |
) |
|
|
(1,430 |
) |
|
|
(13,148 |
) |
|
Finance
|
|
|
9 |
|
|
|
2,340 |
|
|
|
4,328 |
|
|
|
361 |
|
|
Gain on derecognition of long term provision
|
|
|
|
|
|
|
– |
|
|
|
– |
|
|
|
(1,900 |
) |
|
Loss on debt repayment
|
|
|
|
|
|
|
– |
|
|
|
2,977 |
|
|
|
– |
|
|
|
|
|
|
|
|
|
158,492 |
|
|
|
66,478 |
|
|
|
31,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss before income taxes
|
|
|
|
|
|
|
(158,065 |
) |
|
|
(66,450 |
) |
|
|
(31,135 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Provision for) recovery of income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
13 |
|
|
|
(41 |
) |
|
|
– |
|
|
|
(7 |
) |
|
Deferred
|
|
|
13 |
|
|
|
14,352 |
|
|
|
2,432 |
|
|
|
4,381 |
|
|
|
|
|
|
|
|
14,311 |
|
|
|
2,432 |
|
|
|
4,374 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss and total comprehensive loss from continuing operations
|
|
|
|
|
|
|
(143,754 |
) |
|
|
(64,018 |
) |
|
|
(26,761 |
) |
|
Net income (loss) and total comprehensive income (loss) from discontinued operations
|
|
|
6 |
|
|
|
(2,072 |
) |
|
|
49,644 |
|
|
|
1,485 |
|
|
Net loss and total comprehensive loss
|
|
|
|
|
|
|
(145,826 |
) |
|
|
(14,374 |
) |
|
|
(25,276 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per common share, basic and diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From continuing operations
|
|
|
|
|
|
|
(1.25 |
) |
|
|
(0.56 |
) |
|
|
(0.23 |
) |
|
From discontinued operations
|
|
|
|
|
|
|
(0.02 |
) |
|
|
0.43 |
|
|
|
0.01 |
|
|
From net loss
|
|
|
|
|
|
|
(1.27 |
) |
|
|
(0.13 |
) |
|
|
(0.22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted (000s)
|
|
|
|
|
|
|
114,785 |
|
|
|
114,713 |
|
|
|
114,226 |
|
Investor Alert
Item 8.01 Other Event.
On March 17, 2014, Ivanhoe Energy Inc. (the “Company”) issued a press release announcing that following a thorough review the Company has suspended activity on its current Tamarack oil sand project. A copy of this press release is furnished as Exhibit 99.1 to this report.
The information furnished pursuant to Item 8.01 of this report, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Investor Alert
Item 8.01 Other Events.
On September 6, 2013, Ivanhoe Energy Inc. (the “Company”) received a notification letter (the “Notice”) from the Listing Qualifications Department of the NASDAQ Stock Market (“NASDAQ”) notifying the Company that the minimum bid price per share for its common stock fell below $1.00 for a period of 30 consecutive business days and that therefore the Company did not meet the minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Rule”).
The Notice stated that the Company would be provided 180 calendar days, or until March 5, 2014, to regain compliance with the Minimum Bid Price Rule however the Company did not regain compliance by that time.
NASDAQ has determined that the Company is eligible for an additional 180 calendar day period, or until September 2, 2014, to regain compliance with the Minimum Bid Price Rule. If at any time during this additional period the closing bid price of the Company’s security is at least $1.00 per share for a minimum of 10 consecutive business days, NASDAQ will provide written confirmation of compliance and the matter will be closed.
The Company intends to continue to monitor the bid price for its common stock. If the Company’s common stock does not trade at a level that is likely to regain compliance with the Minimum Bid Price Rule, the Company’s Board of Directors will consider other options that may be available to achieve compliance. If compliance cannot be regained by September 2, 2014, NASDAQ will provide written notification that the Company’s securities will be delisted. At that time, the Company may appeal NASDAQ’s determination to a hearings panel.
Comments & Business Outlook
CALGARY, Dec. 31, 2013 /PRNewswire/ - Ivanhoe Energy Inc. (TSX: IE) (NASDAQ: IVAN) announced today that it received the finalUS$3.7 million in proceeds from Shell China relating to the transfer of the Zitong Block Petroleum Contract. The funds were released as part of the 2012 China National Petroleum Corporation's cost recovery audit. Proceeds will be added to existing working capital reserves.
Comments & Business Outlook
IVANHOE ENERGY INC.
Condensed Consolidated Statements of Loss and Comprehensive Loss
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, |
|
|
Nine Months Ended
September 30, |
|
|
(US$000s, except share and per share amounts)
|
|
Note |
|
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
|
Interest and other income
|
|
|
|
|
|
|
292 |
|
|
|
11 |
|
|
|
382 |
|
|
|
21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
|
|
|
|
|
905 |
|
|
|
1,243 |
|
|
|
3,119 |
|
|
|
3,499 |
|
|
Exploration and evaluation
|
|
|
|
|
|
|
4,699 |
|
|
|
22,648 |
|
|
|
4,699 |
|
|
|
22,800 |
|
|
General and administrative
|
|
|
|
|
|
|
9,069 |
|
|
|
7,050 |
|
|
|
30,187 |
|
|
|
23,307 |
|
|
Depreciation
|
|
|
|
|
|
|
255 |
|
|
|
232 |
|
|
|
739 |
|
|
|
731 |
|
|
Foreign currency exchange loss (gain)
|
|
|
|
|
|
|
978 |
|
|
|
2,707 |
|
|
|
(1,949 |
) |
|
|
1,924 |
|
|
Derivative instruments (gain) loss
|
|
|
|
|
|
|
(1 |
) |
|
|
11 |
|
|
|
(177 |
) |
|
|
(1,538 |
) |
|
Finance
|
|
|
|
|
|
|
525 |
|
|
|
1,502 |
|
|
|
1,958 |
|
|
|
2,088 |
|
|
Loss on debt repayment
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,430 |
|
|
|
35,393 |
|
|
|
38,576 |
|
|
|
53,120 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes
|
|
|
|
|
|
|
(16,138 |
) |
|
|
(35,382 |
) |
|
|
(38,194 |
) |
|
|
(53,099 |
) |
|
Recovery of (provision for) income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(41 |
) |
|
|
— |
|
|
Deferred
|
|
|
|
|
|
|
928 |
|
|
|
1,385 |
|
|
|
2,665 |
|
|
|
1,901 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
928 |
|
|
|
1,385 |
|
|
|
2,624 |
|
|
|
1,901 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss and total comprehensive loss from continuing operations
|
|
|
|
|
|
|
(15,210 |
) |
|
|
(33,997 |
) |
|
|
(35,570 |
) |
|
|
(51,198 |
) |
|
Net (loss) income and total comprehensive (loss) income from discontinued operations
|
|
|
3 |
|
|
|
— |
|
|
|
(550 |
) |
|
|
(2,072 |
) |
|
|
1,286 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss and comprehensive loss
|
|
|
|
|
|
|
(15,210 |
) |
|
|
(34,547 |
) |
|
|
(37,642 |
) |
|
|
(49,912 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share, basic and diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From continuing operations
|
|
|
|
|
|
|
(0.13 |
) |
|
|
(0.30 |
) |
|
|
(0.31 |
) |
|
|
(0.45 |
) |
|
From discontinued operations
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(0.02 |
) |
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.13 |
) |
|
|
(0.30 |
) |
|
|
(0.33 |
) |
|
|
(0.44 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares Basic and diluted (000s)
|
|
|
2 |
|
|
|
114,824 |
|
|
|
114,713 |
|
|
|
114,729 |
|
|
|
114,713 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(See accompanying Notes to the Unaudited Condensed Consolidated Financial Statements)
Company Rebuttal
CALGARY, Aug. 9, 2013 /PRNewswire/ - Ivanhoe Energy Inc. (TSX: IE; NASDAQ: IVAN) announced today that it knows of no reason for the decrease in the Company's share price late in the trading session on August 8, 2013. There have been no material adverse developments or circumstances with respect to the Company's activities that would explain this sudden drop.
The Ivanhoe Energy executive management team is committed to the Company's success and remains optimistic that 2013 and 2014 will see significant progress in its priority areas.
Comments & Business Outlook
Legal Insights
CALGARY, July 16, 2013 /PRNewswire/ - Ivanhoe Energy Inc. (TSX: IE; NASDAQ: IVAN) announced today that it has established a long-term relationship and negotiated a letter of non-objection regarding the Tamarack project with the Mikisew Cree First Nation.
Ivanhoe Energy has now successfully secured letters of non-objection from five of the seven stakeholders that filed Statements of Concern (SOC) and continues efforts to resolve the final two SOCs.
Comments & Business Outlook
CALGARY, July 8, 2013 /PRNewswire/ - Ivanhoe Energy Inc. (TSX: IE; NASDAQ: IVAN) announced today that it received $3.6 millionin anticipated holdback proceeds from the transaction with MIE Holdings Corporation (MIE). The receipt of these funds marks the completion of the corporate disposition of Ivanhoe's wholly-owned subsidiary, Pan-China Resources, to MIE.
Ivanhoe Energy is focused on resolving the concerns of the Tamarack project stakeholders, completing partnership discussions inEcuador and commercializing the HTL technology.
Comments & Business Outlook
CALGARY, July 3, 2013 /PRNewswire/ - Ivanhoe Energy Inc. (TSX: IE; NASDAQ: IVAN) announced today that it received the full US$5 million inholdback proceeds from the transfer of the Zitong Block Petroleum Contract to Shell China.
The Company expects to receive the final US$3.7 million payment from Shell China upon completion of China National Petroleum Corporation's annual cost recovery audit for 2012 expenditures.
Resolution of Legal Issues
CALGARY, May 13, 2013 /PRNewswire/ - Ivanhoe Energy (TSX: IE; NASDAQ: IVAN) announced today that it received confirmation from the NASDAQ Stock Exchange (NASDAQ) that it regained compliance with the $1.00 minimum bid price rule. The Company's common shares maintained a closing bid price of $1.00 per share or greater for the required ten consecutive days, from April 26, 2013to May 9, 2013.
The company continues to make progress on its three main 2013 objectives:
- Obtaining regulatory approval for the Tamarack project in Canada;
- Finalizing the partnership and development program for Block 20 in Ecuador; and,
- Commercialization of its proprietary and patented Heavy-to-Light (HTL) heavy oil partial upgrading process.
Company Rebuttal
CALGARY, May 10, 2013 /PRNewswire/ - Ivanhoe Energy (TSX: IE; NASDAQ: IVAN) announced today that reported allegations contained in a recently filed lawsuit in Vancouver, British Columbia against Ivanhoe Energy, its subsidiaries Ivanhoe Energy Latin America and Ivanhoe Energy Ecuador and shareholder Robert Friedland , are false and without merit. The new suit, filed by Cotundo Minerales S.A. (Cotundo), an Ecuadorian corporation, contains recycled allegations about Ivanhoe Energy's contract on the Pungarayacu heavy oil field, which were dismissed previously in the United States (U.S.) federal court system.
The previous suit, alleging the same and even more extreme claims against these and other defendants, was filed in 2008 by Cotundo and its principal, Jack Grynberg , in Colorado. Mr. Grynberg has a long history of filing lawsuits as part of his business activities. The U.S. District Court for the District of Colorado dismissed the claims in September 2009 for lack of jurisdiction, denied the plaintiffs' attempt to have the case transferred to the U.S. District Court for the Eastern District of California, issued sanctions against the associated individuals and companies for making baseless allegations and subsequently ordered them to pay a substantial amount of the defendants' attorneys' fees, which was an unusual step in the U.S. courts. The Colorado District Court's decision rested, in part, on the conclusion that the allegations did not "likely have merit". In July 2012, the U.S. Court of Appeals for the Tenth Circuit strongly affirmed the District Court's rulings in a detailed 50-page written judgment.
The Company intends to vigorously defend the new lawsuit. Ivanhoe Energy does not believe that this lawsuit will impede its initiatives to develop Block 20(including the Pungarayacu oil field).
Comments & Business Outlook
Share Structure
CALGARY, April 24, 2013 /PRNewswire/ - Ivanhoe Energy (TSX: IE; NASDAQ: IVAN) announced today that it will proceed with the shareconsolidation as proposed in the Management Proxy Circular and approved at the Company's Annual General Meeting on Monday April 22, 2013. The Company's Board of Directors subsequently approved a share consolidation ratio of 1 new common share for every 3 existing common shares.
The consolidation of the Company's common shares is intended to establish the basis for the shares to trade above $1.00, as per the listing requirements of the NASDAQ Stock Market ("NASDAQ"). Taking this step will support the Company's efforts to maintain market access and trading liquidity of current and future shareholders who trade on the NASDAQ exchange.
"This consolidation is an important step in our efforts to maintain liquidity and facilitate growth as we develop our world-class assets," said Carlos A. Cabrera , Executive Chairman. "Ivanhoe Energy is strong and moving forward with our business plan. We are confident the Company will make progress with priority initiatives, and have positive news, in the months ahead."
The consolidation will reduce the number of outstanding common shares from approximately 344.5 million to approximately 114.8 million. Proportionate adjustments will be made to the Company's outstanding stock options and restricted share units. No fractional common shares have been issued pursuant to the consolidation and any fractional shares that would have otherwise been issued have been rounded down or up to the nearest whole number.
The Company has received conditional approval from the Toronto Stock Exchange ("TSX") to effect the consolidation and has provided notification of the consolidation to NASDAQ. Subject to final confirmation by TSX and NASDAQ, it is expected that the post-consolidation common shares will begin trading on each of NASDAQ and TSX at the opening of markets on or about April 26, 2013 under its current NASDAQ and TSX trading symbols, "IVAN" and "IE", respectively.
Comments & Business Outlook
Fourth Quarter 2012 Results
- Revenues from discontinued operations from full year 2012 were $32.5 million, compared to $37.4 million in 2011.
- The company reported a non-GAAP diluted EPS loss of $0.04 compared to a loss of $0.03 in 2011.
The Company divested non-core assets including the Zitong Block contract, which was transferred to Shell China Exploration and Production Company, and the wholly-owned subsidiary Pan-China Resources Ltd., which was sold to MIE Holdings Corporation. Both transactions were completed in December 2012. Ivanhoe Energy is focused on maintaining financial flexibility, commercializing its patented and proprietary Heavy-to-Light heavy oil upgrading technology and achieving project milestones at its two world-class assets: the Tamarack oil sands project in Canada and Block 20 in Ecuador.
Acquisition Activity
CALGARY, Dec. 27, 2012 /PRNewswire/ - Ivanhoe Energy Inc. (TSX: IE; NASDAQ: IVAN) announced today that through its wholly-owned subsidiary Sunwing Zitong Energy (Sunwing), it has completed the previously announced transfer of the Company's participating interest in the Contract for Exploration, Development and Production in the Zitong Block (Petroleum Contract) to Shell China Exploration and Production Co. (Shell).
In exchange for Sunwing's interest in the Zitong Petroleum Contract, the Company will receive total pre-tax cash proceeds of $105 million. Initial pre-tax proceeds of approximately $96 million were delivered on closing. Per the terms of the transaction, the Company will receive two remaining components of the proceeds as follows: Full Release
Acquisition Activity
CALGARY, Dec. 17, 2012 /PRNewswire/ - Ivanhoe Energy Inc. (TSX: IE; NASDAQ: IVAN) announced today that it has closed the previously announced Share Purchase and Sale Agreement with MIE Holdings Corporation (MIE) for all of the outstanding shares of its indirect, wholly owned subsidiary, Pan-China Resources Ltd.
In exchange for its indirect wholly-owned subsidiary, Ivanhoe Energy will receive the $45 million purchase price, less adjustments. Per the terms of the Agreement, initial proceeds of approximately$35.6 million were delivered on closing and the Company will receive the remainder within six months.
Ivanhoe Energy expects to complete the transaction to divest the Zitong asset by the end of 2012. In 2013 the Company plans to take significant steps to further develop the Tamarack project in Canada and Block 20 in Ecuador, and commercialize the HTL technology.
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, 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.
Comments & Business Outlook
Third Quarter 2012 Results
- Revenue for the third quarter 2012 was $8.7 vs $10.7 in the prior year period.
- Net loss per share for the third quarter 2012 was $0.10 vs a loss of $0.01 in prior year period.
Ivanhoe Energy's oil revenue in the three months ended September 30, 2012 decreased from the same period in 2011. This was due to a combination of lower net volumes and pricing. Oil production from the Dagang field in China was relatively constant; however, there was minimal capital activity. The terms of the Production Sharing Contract with the Chinese National Petroleum Corporation (CNPC) stipulate that capital expenditures are to be funded 100% by Ivanhoe Energy and CNPC's portion of the costs are reimbursed through the receipt of additional oil sales. With less capital activity in the third quarter, the result was less oil production allocated to the Company.
Company Rebuttal
CALGARY, July 2, 2012 /PRNewswire/ - Ivanhoe Energy Inc. (TSX: IE; NASDAQ: IVAN) announced today that it knows of no reason for the decrease in the Company's share price late in the trading session on June 29, 2012. There have been no material adverse developments or circumstances with respect to the Company's activities that would explain this sudden drop. Management continues to make steady progress on all of the Company's business initiatives, which will build the foundation for future growth.
The Ivanhoe Energy executive management team have maintained their shareholdings and will increase them over time. This team is committed to the Company's success and remains optimistic that 2012 will see significant progress in many of its projects.
"Our management team remains confident in our ability to grow this Company," said Carlos A. Cabrera, Ivanhoe Energy's Executive Chairman. "Despite the volatility in a number of the financial markets, we are focused and working as a team to deliver results from our world-class assets."
Investor Alert
On May 24, 2012, Ivanhoe Energy Inc. (the “Company”) received a notification letter (the “Notice”) from the Listing Qualifications Department of the NASDAQ Stock Market (“NASDAQ”) notifying the Company that the minimum bid price per share for its common stock fell below $1.00 for a period of 30 consecutive business days and that therefore the Company did not meet the minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Rule”).
The Notice has no effect on the listing of the Company’s common stock on the NASDAQ at this time. In addition, the Company’s common shares are listed and trade on the Toronto Stock Exchange. The Toronto Stock Exchange does not have a minimum bid price per share requirement.
The Notice stated that the Company would be provided 180 calendar days, or until November 20, 2012, to regain compliance with the Minimum Bid Price Rule. In accordance with Rule 5810(c)(3)(A), the Company can regain compliance if at any time during the 180-day period the closing bid price of the Company's common stock is at least $1.00 for a minimum of 10 consecutive business days.
If the Company does not regain compliance by November 20, 2012, the Company may be eligible to have an additional period of 180 days to regain compliance with the minimum bid price requirement. To qualify for additional time the Company will be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, with the exception of the bid price requirement. In addition, the Company will need to provide written notice of its intention to cure the deficiency during the second compliance period. If the Company is not eligible for the second compliance period, then the NASDAQ Staff will provide notice that the Company's securities will be subject to delisting. At such time, the Company may appeal the delisting determination to a Hearings Panel.
The Company intends to continue to monitor the bid price for its common stock. If the Company’s common stock does not trade at a level that is likely to regain compliance with the Minimum Bid Price Rule, the Company’s Board of Directors will consider other options that may be available to achieve compliance.
Deal Flow
On March 14, 2012, Ivanhoe Energy Inc. (“Ivanhoe” or “the Company”) entered into a U.S.
$50 million short-term secured credit agreement (the “Short-term Loan”) among Ivanhoe as borrower, the Subsidiary Guarantors, as defined below, UBS Securities LLC (“UBS”) as arranger bookmanager, documentation agent and syndication agent, UBS AG, Stamford Branch, as administrative agent and UBS AG Canada Branch as collateral agent. Amounts outstanding under the Short-term Loan will initially bear interest, depending on the form of borrowing, at a rate of 9-10% above a floating short-term prime lending rate. The Short-term Loan is secured by a first charge on the oil sands leases comprising the Company’s Tamarack Project (the “Tamarack Leases”) and a pledge of the shares of certain of the Company’s subsidiaries (the “Guarantor Subsidiaries”).
Acquisition Activity
On January 11, 2012, Sunwing Zitong Energy Ltd. (“Sunwing”), a subsidiary of Ivanhoe Energy Inc. (the “Company”), entered into a binding Memorandum of Understanding (the “MOU”) with Shell China Exploration and Production Company Limited (“Shell China”), a subsidiary of Royal Dutch Shell. According to the MOU, subject to government approvals and other prescribed conditions, Sunwing agreed to sell to Shell China 100% of Sunwing’s participating interest in and under the Production Sharing Contract for the Zitong block in China’s Sichuan Basin, dated September 19, 2002, as supplemented and amended by a Supplementary Agreement dated December 30, 2011 (the “Supplementary Agreement”), among Sunwing, China National Petroleum Corporation (“CNPC”) and Mitsubishi Gas Chemical Company, Inc. Shell China agreed to pay as consideration (i) a payment of up to US$85 million as reimbursement for past qualified and recoverable costs incurred, and (ii) a further payment upon closing of up to US$75 million, contingent on the timing of the receipt of full government approvals and third-party consents and waivers for the transaction.
In addition, the MOU sets forth that following completion of the transaction, Shell China will assume the US$20 million performance bond that the Company deposited in December 2011 for the benefit of CNPC pursuant to the Supplementary Agreement. Sunwing and Shell China expect to sign the definitive Purchase and Sale Agreement associated with the proposed transaction by January 23, 2012 and to close the transaction by a deadline of December 31, 2012.
GeoTeam Note: This potential transaction works out to about $0.50 per share.
Liquidity Requirements
Management’s plans for financing future expenditures include traditional project financing, debt and mezzanine financing or the
sale of equity securities as well as the potential for alliances or other arrangements with strategic partners. Discussions with potential strategic partners are focused primarily on national oil companies and other sovereign or government entities that have approached Ivanhoe and expressed interest in participating in the Company’s heavy oil activities in Ecuador, Canada and around the world. However, no assurances can be given that Ivanhoe will be able to enter into one or more strategic business alliances with third parties or that the Company will be able to raise sufficient additional capital. If the Company is unable to enter into such business alliances or obtain adequate additional financing, the Company may be required to curtail its operations, which may include the sale of assets.
Deal Flow
On May 25, 2011, Ivanhoe Energy Inc. (the “Company”) entered into an
underwriting agreement to sell, on a bought deal basis to a syndicate of underwriters, $50,000,000 aggregate principal amount of 5.75% convertible unsecured subordinated debentures.