Ivanhoe Energy announces spudding of first Mongolian well

Ivanhoe Energy (TSE:IE) announced Tuesday that its subsidiary, Sunwing Energy, has spudded the first exploration well on the company's Mongolian property.

The well, which is being drilled by the Daqing Exploration Company, was spudded on the Nyalga block, and has since been drilled to 437 metres. Surface casting has also been run and cemented.

"This is an important step in our exploration program in Mongolia," said Ivanhoe president and COO, David Dyck.

"Given the results of our 2D seismic study, we are optimistic of the potential to discover oil resources in Mongolia."
The structure on the Nyalga block is approximately 32 square kilometres in size, and will be drilled to a total depth of 2,500 metres.

Ivanhoe acquired the property in November 2009, after merging Sunwing with PanAsian Petroleum, which held the exclusive rights to the Nyalga oil block.

The Nyalga basin is reported to possess many of the characteristics of interior rift basins that produce light oil east and south of Nyalga and in northern China.

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