Vancouver's Ivanhoe Energy Inc. (TSX:IE) plans to acquire oilsands assets from Calgary-headquartered Talisman Energy for $105 million.
The deal involves Talisman's interests in three leases in the heart of Alberta's Athabasca oilsands region. Ivanhoe plans to use its proprietary heavy-oil upgrading technology to extract the estimated 610 million barrels of oil contained in two of the three leases.
It will pay $30 million when the deal closes and another $20 million with interest by year's end. About $40 million will be paid as a three-year convertible note with interest that can be converted to approximately 12.8 million Ivanhoe Energy shares. The remaining $15 million will be paid in cash when Ivanhoe receives approval to develop one of the three leases.
Ivanhoe Energy's share price range during the past week: between $2.34 and $2.87; 52-week high: $2.90; 52-week low: $1.24.