A significant testing and completion evaluation on the Sledge Hamar 1-7 well will commence in the next few days.

"Drilling results, electric log analysis and analysis of core data collected following the drilling … suggest multiple zones over several thousand feet of gross drilled interval require further evaluation through testing and carefully planned completions," said the company.

"Well testing and completion procedures that are under consideration are aimed at identifying the most advantageous approach to maximizing potential production generally starting with the deepest intervals and proceeding to the shallowest. It is likely that complete testing of the multiple hydrocarbon bearing intervals will not take place until additional wells have been drilled in the program.

"The diatomite zones and sandstones encountered appear to be of satisfactory quality and are likely extensive enough to suggest gross hydrocarbon pore volume will not be the limiting factor to the scale of success," said the company.

Interests are: Nahabedian Exploration Group, LLC 50%; Ivanhoe Energy Inc 40% and Orchard 10%.