Drilling to Begin in Ivanhoe Energy's Pungarayacu Field in Ecuador
This follows completion of final infrastructure preparations, including construction of a three-kilometre access road to the well-site. These works were carried out under the supervision of Ecuador's Ministry of the Environment.
The drill site, known as well IP-15, is located towards the north end of Ivanhoe Energy's Block 20, near the town of Archidona. The well is expected to be drilled to approximately 1,300 feet (400 metres), followed by an extensive coring, logging and testing program, which is slated to continue into
An independent study completed by Gaffney, Cline & Associates concluded that within the 250-square-mile delineated portion of the block, and within the formation of primary interest, the Hollin, there are 4.3 billion barrels (Low Case), 6.4 billion barrels (Mid Case) and 12.1 billion barrels (High Case) of oil originally in place.
Drilling and testing of the IP-15 well will be followed by drilling and testing of additional wells in different areas of Block 20, four of which are already permitted. Permitting for an additional 20 wells will begin in
The primary reservoir in Block 20 is a relatively shallow accumulation of oil in the Hollin formation. The Hollin is believed to contain heavy oil with API gravities ranging from 10 degrees to 16 degrees. The Gaffney, Cline & Associates evaluation of oil-in-place was limited to this formation. In addition to the Hollin, there is a shallower formation, the Napo, which is a major producing formation in other fields in the region. There also are deeper formations that have yet to be explored. Ivanhoe Energy Ecuador's development rights cover all of these formations, and provide the right to explore, develop and produce heavy oil as well as light oil.
Ivanhoe Energy
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, patented heavy-oil upgrading process (HTL(TM)). Core operations are in
For more information about Ivanhoe Energy Inc. please visit our web site at www.ivanhoeenergy.com
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 anticipated results of drilling and testing well IP-15, the drilling and testing of additional wells in different areas of Block 20 and other statements which are not historical facts. When use in this document, the words such as "could", "plan", "estimate", "anticipate", "intend", "may", "potential", "should", and similar expressions relating to matters that are not historical facts are forward-looking statements. Although Ivanhoe Energy and Ivanhoe Energy
For further information: Investors Contact: Ian Barnett, (416) 792-3308; Dorreen Miller, (403) 269-2871; Media Contact: Bob Williamson, (604) 331-9880; Website: www.ivanhoeenergy.com
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