Operations

Sunwing Energy Ltd. is a wholly-owned subsidiary of Ivanhoe Energy and it has been conducting operations in China since the mid-1990s. During its 15-year history in China, Sunwing has signed three Production Sharing Contracts and has drilled over 50 exploration and development wells to depths ranging from 1,500 metres to 4,500 metres.

In China, Sunwing:

• Operates the 659,840-acre (1,031-square-miles) Zitong gas exploration block in the Sichuan Province, and it holds a 90% Contractor Interest in a Petroleum Contract with PetroChina Company Limited. Mitsubishi Gas Chemical Company of Japan holds the remaining 10% Contractor Interest.
• Produces approximately 1,800 (gross) barrels of light oil per day in Dagang, in China's Hebei province, in a production sharing agreement with Petrochina in which Sunwing is the operator.
• Maintains a royalty interest in the revenue stream from its first project carried out in the Daqing Oil Field.

In late 2009, Ivanhoe Energy Inc. completed a merger with PanAsian Petroleum Inc., a company that held oil and gas exploration and production rights to a large, highly prospective block (XVI) in central Mongolia. Ivanhoe Energy intends to combine PanAsian's Mongolian interests with Sunwing Energy Ltd. The addition of Block XVI in Mongolia to Sunwing's portfolio of projects will build critical mass for Sunwing.