IVAN -- Produces High Quality Upgraded Heavy-Oil Product with Novel Process Design
BAKERSFIELD, CA, March 13 /CNW/ - Ivanhoe Energy Inc. (NASDAQ: IVAN and TSX: IE), has successfully produced a "High Quality" product at its heavy oil upgrading (HTL) Commercial Demonstration Facility (CDF) in California. This High Quality upgraded oil was produced using an innovative operating method based on a simple, once-through configuration. This innovative operating mode represents an additional processing option for Ivanhoe Energy, and is appropriate for a number of key identified market opportunities, including bitumen production in the Athabasca Oil Sands of Western Canada.
This new approach significantly extends the flexibility of Ivanhoe Energy's HTL technology and can improve the economics in certain field applications where a significant amount of by-product energy is required. Operated on its own, the new configuration, compared with other High Quality processing configurations, will allow for the production of a higher quality product together with higher amounts of by-product energy. Operated in conjunction with other configurations, this new process allows Ivanhoe Energy to better tailor its HTL plant design configurations to market opportunities. In addition to Ivanhoe Energy's current patent protection and new patent claims that have been applied for, a patent application has been filed for this new process design.
The upgraded oil produced in this configuration has a viscosity reduction of over 99%, and had other characteristics superior to upgraded product produced in previous test runs. In addition, this configuration allows for the production of higher amounts of by-product energy than in previously demonstrated configurations, offset by slightly lower liquid volume yields. Third-party analysis of product samples from the 26-hour run announced in February confirmed the product characteristics of this configuration. Since then, a 31-hour run at the CDF has validated the mechanical stability of this processing method.
"This design, which has been the result of substantial effort, represents an attractive processing alternative for specific, identified opportunities in Western Canada and elsewhere," said Joe Gasca, Ivanhoe Energy's President and CEO. "Together with processing configurations already demonstrated, this approach provides Ivanhoe Energy with enhanced flexibility in designing our facilities to match specific market requirements."
Dr. Robert Graham, Ivanhoe Energy's Chief Technology Officer said, "This new configuration enhances the potential of our HTL process by adapting and integrating readily available, proven equipment with our simplest operating mode. This addition to our portfolio of processing techniques is further evidence of the broad flexibility and powerful scope of our core HTL technology."
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.
Conference Call
Ivanhoe Energy will host a conference call tomorrow, Wednesday, March 14, 2007, for investors and analysts at 4:30 p.m. EDT (1:30 p.m. PDT) to discuss recent announcements along with 2006 fourth quarter results and operations. The conference call may be accessed by dialing 1-866-540-8136 in Canada and the United States, or 1-416-340-8010 in the Toronto area and internationally. A simultaneous webcast of the conference call will be provided through www.ivanhoeenergy.com and www.newswire.ca/webcast. If you are unable to participate in the call it will be archived for later playback by dialing 1-416-695-5800 and entering the pass code 3215469 followed by the number sign, or via www.ivanhoeenergy.com. The archived playback will be available until April 14, 2007.
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, patent applications may not be approved as submitted or at all, 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.
