Partnership supports Ivanhoe Energy's Commercialization Strategy for HTL™
CALGARY, May 9, 2012 /PRNewswire/ - Ivanhoe Energy Inc. (TSX: IE; NASDAQ: IVAN)
announced today that it has signed a Memorandum of Understanding with
Coban Oil and Gas ("Coban"), to assess the feasibility of building a Heavy to Light (HTL™) facility to upgrade heavy crude oil in the Republic of
"We were greatly honored that the President of Guatemala, His Excellency
Otto Perez Molina and members of the Guatemalan government were present
for the MOU signing ceremony," said Carlos A. Cabrera, Ivanhoe Energy's
Executive Chairman. "Their presence emphasizes the importance of this
project and the benefits it can bring to the people of Guatemala."
Ivanhoe Energy is implementing a multi-faceted strategy to commercialize
its HTL technology. This plan involves the installation of HTL
facilities on existing Ivanhoe Energy projects, such as Tamarack in
Canada and Pungarayacu in Ecuador; as well as midstream applications.
In a midstream installation Ivanhoe Energy plans to build, own and
operate HTL plants to upgrade heavy oil for third parties. The Company
is actively pursuing this midstream model in various regions of the
world and has advanced several opportunities in North, Central and
Key Terms of the Memorandum of Understanding with Coban
Ivanhoe Energy and Coban will conduct a technical and economic
feasibility study to establish the conditions under which the parties
can upgrade and improve the native crude of Guatemala for domestic
consumption and international export.
This feasibility study will contain all the elements needed to reach an
investment decision to support building an HTL facility that will
upgrade at least 10,000 barrels per day of crude oil.
Once the feasibility work is completed the parties expect to execute a
Definitive Agreement to create a joint venture company whose mandate
will be to build an HTL facility, licenced for operation in the
Republic of Guatemala.
Background on the Republic of Guatemala
The Republic of Guatemala has a representative system of government
where power is equally exercised between the legislative, executive and
judicial branches of government. His Excellency Otto Pérez Molina has
been the President since January 2012.
The Government is focused on enhancing the exploration and development
of the Country's reserves, to create greater opportunity for energy
self-sufficiency and an increase in gross domestic product. Currently
Guatemala has 120 million barrels of proven reserves with significantly
more under the category of contingent and prospective resources.