Ivanhoe Energy to evaluate Iraq's Qaiyarah heavy-oil field

Ivanhoe Energy (Middle East) Inc., a unit of Ivanhoe Energy Inc., Vancouver, BC, has signed a memorandum of understanding with Iraq's Ministry of Oil to study the use of enhanced oil recovery techniques in Qaiyarah heavy-oil field in northern Iraq. The field's reservoirs contain a large proven accumulation of 17.1° oil at about 1,000 ft.

Oct. 13, 2004

By OGJ editors

HOUSTON, Oct. 13 -- Ivanhoe Energy (Middle East) Inc., a unit of Ivanhoe Energy Inc., Vancouver, BC, has signed a memorandum of understanding with Iraq's Ministry of Oil to study the use of enhanced oil recovery techniques in Qaiyarah heavy-oil field in northwest Iraq. The field's reservoirs contain a large proven accumulation of 17.1° oil at about 1,000 ft, but it is not commercially refinable and is used only for asphalt and other heavy residues for domestic use.

Ivanhoe's work includes assessing the reservoirs' oil-in-place and optimum EOR methods, including possible use of Ensyn Petroleum International Ltd.'s heavy-to-light oil RTP conversion technology.

Ivanhoe expects to complete the study within a few months after receiving required field data. If the study indicates an economically viable development, Ivanhoe will offer a commercial proposal to implement an EOR program.

Qaiyarah, located south of Mosul and containing highly sulfurous oil, was discovered in 1927 by British Oilfield Development.