INPEX CORPORATION Joins Ivanhoe Energy in Major Heavy Oil Field Opportunity
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BAKERSFIELD, CA, April 19: Ivanhoe Energy Inc. (NASDAQ:IVAN)(NASDAQ:and)(NASDAQ:TSX:)(NASDAQ:IE) and INPEX CORPORATION, Japan's largest oil and gas exploration and production company, have signed an agreement to jointly pursue the opportunity to develop a heavy oil field in Iraq that Ivanhoe Energy believes is a suitable candidate for its patented HTL(TM) heavy oil upgrading technology.
In late 2004, Ivanhoe Energy signed a memorandum of understanding (MOU) with the Iraqi Ministry of Oil to evaluate a specific, large heavy oil field and its commercial development potential using Ivanhoe Energy's HTL(TM) technology. Since that time, Ivanhoe Energy has carried out a detailed analysis and has generated data regarding the applicability of its HTL(TM) upgrading technology for the development of the field. The necessary approval by the Iraqi Ministry of Oil for INPEX CORPORATION'S participation has been received. Additional details about the project are protected under confidentiality agreements and will be released as permitted and appropriate.
The agreement between INPEX and Ivanhoe Energy provides INPEX with a significant interest in the venture, with Ivanhoe Energy retaining a majority interest. Both parties will have joint leadership participation in the pursuit of the opportunity. The agreement requires a payment by INPEX to Ivanhoe Energy as a contribution towards Ivanhoe Energy's past field studies and related costs. Should Ivanhoe Energy and INPEX proceed with the development and deploy Ivanhoe Energy's HTL(TM) technology, certain technology fees would be payable to Ivanhoe Energy.
"We are very pleased to be involved in the pursuit of this opportunity," said Kunihiko Matsuo, Chairman of INPEX CORPORATION. "Additionally, we are interested in supporting the development of Ivanhoe Energy's HTL(TM) technology, which is expected to have the potential to improve the economics of heavy oil production the world over."
INPEX CORPORATION, Japan's designated national flag oil and gas development company, is engaged in oil and gas exploration and production activities worldwide, including Asia and Oceania, South America, the Middle East and the Caspian Sea regions.
Joe Gasca, Ivanhoe Energy's President and CEO, said, "Our HTL(TM) technology is the foundation for this partnership with INPEX CORPORATION. This agreement is a significant milestone for Ivanhoe Energy as we establish the relationships to build a strong and sustainable heavy oil business based on our unique technology."
"Success in establishing these commercial relationships parallels the significant progress we have made in the advancement of our HTL(TM) technology as we accelerate plans for full commercial deployment," continued Joe Gasca. "This long term opportunity, which combines Ivanhoe Energy's enhanced oil recovery expertise with our patented HTL(TM) technology, complements a number of other initiatives that we have underway that focus on both the Canadian oil sands and heavy oil basins in other parts of the world."
Leon Daniel, Ivanhoe Energy's Deputy Chairman, said, "This strategic partnership between Ivanhoe Energy and INPEX CORPORATION combines our patented HTL(TM) heavy oil upgrading technology with the technical and financial strength of Japan's largest upstream oil company, including its advanced oil recovery technology. This is an important step for us in the competitive pursuit of a project of this magnitude."
Ivanhoe Energy intends to use its proprietary, patented heavy oil upgrading technology (HTL(TM)) to upgrade 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 today, April 19, 2007, for investors and analysts at 4:30 p.m. EDT (1:30 p.m. PDT) to discuss this announcement. The conference call may be accessed by dialing toll-free 1-866-540-8136 in Canada and the United States, or toll 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 newswire.ca/webcast. If you are unable to participate in the call it will be archived for later playback by dialing toll 1-416-695-5800 and entering the pass code 3220803 followed by the number sign, or via www.ivanhoeenergy.com. The archived playback will be available until April 23, 2007.
Ivanhoe Energy is an independent international heavy oil 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(TM)). 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.
Source: Ivanhoe Energy Inc.
CONTACT: Cindy Burnett, (604) 331-9830, Website: www.ivanhoeenergy.com
