Canadian Manufacturing

KPMG puts Ivanhoe Energy’s assets up for sale

Company's primary assets including Tamarack project on auction block

CALGARY—In accordance with a court order, KPMG, which was appointed as the receiver of Ivanhoe Energy, has put the company up for the sale. KPMG has requested parties interested in the company’s assets or shares submit written proposals.

Ivanhoe announced it was bankrupt last month after talks with its creditors failed. It had spent much of late 2014 and early 2015 coping with slumping oil prices.

The company’s three principal assets on sale are:

  • Tamarack – two oil sands leases in Alberta in the Athabasca region of the Western Canadian Sedimentary Basin with over 7,400 net acres. According to the 2013 reserve report, the asset consists of 172 million barrels of heavy oil reserves and 340 million barrels of additional resources and an estimated reserve life of 30 years.
  • Patented heavy oil upgrading process known as “HTL” or “Heavy-to-Light” – a proprietary and patented process that converts heavy oil to lighter synthetic crude oil that can be transported by pipeline without the need for light blend oils. The HTL process can be located in the heavy oil field, completely integrated with upstream field operations. It includes a patent portfolio, a feedstock testing facility, proprietary research and engineering data, as well as operational know-how.
  • Tax Pools – significant non-capital losses in Canada and the US available for use on a go forward basis, subject to income tax rules and regulations in both Canada and the US.

In addition to the three principal assets, KPMG noted that Ivanhoe also holds oil and gas exploration and production rights in Mongolia.

The receiver said the assets are being sold on an “as is-where is” basis and that KPMG provides no representations or warranties, express or implied, with respect to title, condition or fitness for use.

Interested parties must be qualified by KPMG in order to participate in the process and are required to submit non-binding indications of interest by Aug. 28, 2015.

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