IVAN -- Ivanhoe Energy Successfully Performs Heavy Oil Upgrading Run
Monday February 5, 8:11 am ET
Recent Innovations Expected to Advance Proprietary Technology
VANCOUVER, Feb. 5 /PRNewswire-FirstCall/ - Ivanhoe Energy Inc. (NASDAQ: IVAN and TSX: IE) has recently completed a significant run at its California Commercial Demonstration Facility (CDF). This run, the most successful to date, was the culmination of a multi-month program that included tailoring the CDF for the processing of heavy crude fractions in configurations matched to specific commercial opportunities that Ivanhoe Energy has identified.
The 26-hour run was concluded with a controlled shutdown at the end of the planned test period. This run processed California vacuum tower bottoms (VTBs), which are the heaviest component of California heavy oil. These VTBs, which are solid at room temperature, are heavier and more viscous than Athabasca bitumen that is found in the Canadian oil sands.
This test run, performed using the High Yield configuration, follows a program of enhancements to the CDF. The run confirmed these enhancements and was also geared to the generation of information related to certain new commercial configurations that the company has developed in recent months. These new configurations were developed in the context of commercial opportunities and are the result of extensive analysis of data from prior runs carried out by Ivanhoe Energy's technical team as well as outside experts in process engineering and upgrading technology. Ivanhoe Energy believes these new configurations may represent a simple and cost effective alternative for the processing of some of the more challenging heavy crudes around the world. The company will continue to pursue these innovative configurations in forthcoming tests and analyses.
"We are pleased to have completed this stage of the test program with such a successful run," said Joe Gasca, President and CEO of Ivanhoe Energy. "We look forward to the results of the third party analysis on the samples that were produced. The stability of this run exceeded our expectations and confirms the work that has been carried out over recent months. This run is also expected to generate useful data regarding the new processing configurations that have been developed as we continue to evolve and improve the technology."
Ivanhoe Energy will continue with both its technical and commercial development initiatives, focusing on Athabasca bitumen from the Canadian oil sands, as well as ongoing work to support the due diligence efforts of potential partners. This most recent run was observed by a representative from one of several international oil companies that are currently assessing the technology and are in strategic discussions with Ivanhoe Energy. Ivanhoe Energy will also continue to pursue and evaluate the application of new configuration alternatives for the processing of heavy crudes and bitumen. Updates regarding potential advancements to the technology will be issued once the data from this run has been analyzed and additional testing is carried out.
Ivanhoe Energy's proprietary, patented heavy oil upgrading technology (HTL) upgrades the quality of heavy oil and bitumen by producing lighter, more valuable crude oil at lower costs and in smaller-sized plants than conventional technologies. The process also produces by-product energy that can be used to generate steam or electricity. In the process of targeting specific commercial applications, Ivanhoe Energy has developed what are believed to be patentable innovations, and expects that new innovations, improvements and optimizations will be continually integrated into the HTL process and protected as the HTL technology progresses.
Ivanhoe Energy is an independent international oil and gas development and production company focused on pursuing long-term growth in its reserves and production using advanced technologies, including its proprietary heavy oil upgrading process (HTL). Core operations are in the United States and China, with business development opportunities worldwide. Ivanhoe Energy trades on the NASDAQ Capital Market with the ticker symbol IVAN and on the Toronto Stock Exchange with the symbol IE.
FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning the potential benefits of Ivanhoe Energy's heavy oil upgrading technology, the potential for commercialization and future application of the heavy oil upgrading technology, potential advancements to the technology and other statements which are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions relating to matters that are not historical facts are forward-looking statements. Although Ivanhoe Energy believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that the HTL test facility may experience technical and mechanical difficulties, the HTL process to upgrade heavy oil and bitumen may not be commercially viable, competition and other risks disclosed in Ivanhoe Energy's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on EDGAR and the Canadian Securities Commissions on SEDAR.
CONTACT: Cindy Burnett, (604) 331-9830, Website: www.ivanhoeenergy.com
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Source: Ivanhoe Energy Inc.
