$2.66
-0.01 (-0.38%)
Ivanhoe Energy, Inc. (USA) (IVAN)
CAPS Rating:
An oil development and production company which is focused on pursuing long-term growth in its reserve base and production.
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This company is a major player in heavy oil upgrading that is restructuring itself to take advantage of its expertise. They will be big in Canadian oil sands as well as conventional heavy oil, what the world mostly has left, in various places around the world.
Ivan is a minor and unproven player in the heavy oil upgrading. The real andproven players with actual operating heavy oil upgraders are: PetroCanada, Husky Oil, Suncor, Gen Oil, BA Energy, etc. Checkout their websites and see where their technology stands vs that of Ivanhoe!
Their HTL is now drawing serious attention of investors. IVAN's volume has gone from the 1mil range to 4mil in the past week or so. If this company looks to globalize past Canada you could see a multi-bagger here! Even staying status quo it is an (almost) easy $3 stock.
A major problem for Ivanhoe is the price of natural gas and its use in its process. Although, IVAN says it has an energy positive process, companies, like COP and ECA have walked away and decided on using conventional steam processes that were already in place rather than re-tooling for IVAN's process. The deal with Talisman seems to be a "show me" deal that could be make or break for IVAN in the oil sands game.