Linked article looks intriguing.

B

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Ivanhoe Energy Inc IVAN.O (NASDAQ)
Sector: Energy Industry: Oil & Gas Operations View IVAN.O on other exchanges
As of 2:04 PM EST
$2.34USD
Price Change
Down0.06
Percent Change
Down2.50%

Independent Research Profile Report

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Ivanhoe Energy Inc., incorporated on February 21, 1995, is an independent international heavy oil development and production company. The Company is exploring an opportunity to monetize stranded gas reserves through the application of the conversion of natural gas-to-liquids using a technology (GTL Technology or GTL) licensed from Syntroleum Corporation. Its core operations are in the United States and China. Ivanhoe Energy's heavy oil upgrading technology upgrades heavy oil and bitumen by producing crude oil, along with by-product energy, which can be used to generate steam or electricity. The Company's principal oil and gas properties are located in California's San Joaquin Basin and Sacramento Gas Basin, the Midland Basin in Texas and the Hebei and Sichuan Provinces in China.

United States

The Company has 59 producing wells in South Midway and is the operator, with a working interest of 100% and a 93% net revenue interest. During the year ended December 31, 2006, it drilled 10 new wells on the South Midway properties. The 10 new wells are producing 150 gross barrels of oil per day (Bopd). Three wells in this program were drilled to test for pool extensions or new pool discoveries.
In the southern expansion area of South Midway, the Company has supplemented the cyclic steam project with a pilot to test continuous steam injection into five wells. Production from the southern expansion area is approximately 150 gross Bopd and total South Midway production is approximately 590 gross Bopd at December 31, 2006.

In 2000, the Company farmed into the Spraberry property, which is a producing property located on 2,500 gross acres in the Spraberry Trend of the West Texas Permian Basin in Midland County, Texas. After the Company had sold a portion of its working interest, it retained working interests ranging from 31% to 48% in 25 wells, which produce approximately 80 net barrel of oil equivalent/ day (Boe/d). In 2006, the Company sold its working interest in its three producing wells in the Citrus prospect. It holds 2,316 net acreage in this prospect, all of which has been farmed out. As part of this farm out the Company retained a carried 35% working interest in two wells.

The Company farmed in to the Knights Landing project is a 15,700 gross-acre block located in the Sacramento Gas Basin in northern California. It has drilled nine new exploratory wells, which resulted in three successful completions and six dry holes. Subsequent to this drilling program, the Company increased its working interests in the project and 11 existing producing natural gas wells. During the year ended December 31, 2005, the Company acquired a three-dimensional (3-D) seismic data program over 25 square miles covering its Knights Landing acreage block. The Company completed its seismic acquisition program in December 2005, and completed processing and interpretation of the seismic data in 2006.

The Aera exploration agreement, originally covering an area of more than 250,000 acres in the San Joaquin Basin, gave the Company access to all of Aera's exploration, seismic and technical data in the region for the purpose of identifying drillable exploration prospects. The Company identified 13 prospects within 11 areas of mutual interest (AMI) covering approximately 46,800 gross acres owned by Aera and an additional 24,200 acres of leased mineral rights. Of the 13 prospects submitted, Aera has elected to take a working interest in 10 prospects, resulting in the Company's retention of working interests ranging from 12.5% to 50%. The Company has a 100% working interest in three prospects, in which Aera elected not to participate: South Midway, Citrus and North Yowlumne.

In December 2005, drilling commenced on the North Yowlumne prospect with a planned total depth of 13,000 feet to test the Stevens sands that have produced over 100 million barrels of oil at the nearby Yowlumne field. The well did not produce commercial quantities of hydrocarbons during several tests and has been suspended indefinitely by the operator. In March 2007, the Company assigned its rights to this property and retained a carried 15% working interest in future drilling of the prospect.

China

The Company's producing property in China is a 30-year production-sharing contract with China National Petroleum Corporation (CNPC), covering an area of 12,110 gross acres divided into four blocks in the Kongnan oilfield in Dagang, Hebei Province, China (the Dagang field). In January 2004, the Company negotiated farm-out and joint operating agreements with Richfirst Holdings Limited (Richfirst) a subsidiary of China International Trust and Investment Corporation (CITIC). Richfirst converted its 40% working interest in the Dagang field and in February 2006, the Company re-acquired Richfirst's 40% working interest.
At December 31, 2006, the Company had drilled a total of 39 development wells in the approved Overall Development Plan (ODP). In 2006, the Company reached agreement with CNPC to reduce the overall scope of the ODP to approximately 44 wells. In 2006, gross production rate was 1,877 Bopd c. The Company sells its crude oil at a three-month rolling average price of Cinta crude. During 2006, it completed one well drilled in 2005, fracture stimulated 12 wells and re-completed 13 wells. In addition, it relinquished two of the six blocks that were part of the original development plan. In October 2006, the Company commenced drilling a second exploration well, which is being drilled to a target depth of 12,800 feet. In 2006, it farmed-out 10% of its working interest in the Zitong block to Mitsubishi Gas Chemical Company Inc. of Japan (Mitsubishi).

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Ivanhoe licenses the technology from the following:
http://www.syntroleum.com/proj_rba_biofining.aspx
Ooops! That one is for biofuel.

Here's the correct link:
http://www.syntroleum.com/tech_stranded_gas_opp.aspx