CALGARY, Dec. 16, 2013 /CNW/ - Ivanhoe Energy (TSX: IE;
NASDAQ: IVAN) announced today that it has learned that the Alberta
Energy Regulator (AER) intends to develop a new long-term policy
for reviewing shallow steam assisted gravity drainage (SAGD)
applications in Alberta. Following
discussions with each affected industry applicant, and by the end
of January 2014, the AER plans to
publish interim guidelines. Then, following extensive industry and
stakeholder engagement, the AER will develop a long-term policy.
This decision and process affects all shallow SAGD projects, not
just Ivanhoe's Tamarack project.
Ivanhoe Energy began the regulatory process in
November 2010, was informed that its
application was complete by Alberta Environment and Sustainable
Resource Development (AESRD) in January
2013, and enhanced its application with an addendum in
August 2013. The addendum
included results from the testing and coring of three additional
wells and 3D seismic data from a portion of the project's
area. Ivanhoe met with the AER on December 13, 2013 and was advised that the
project would not continue to be processed until 3D seismic has
been collected and interpreted over the entire initial development
area and the maximum operating pressure meets the interim
guidelines.
In light of these new standards, Ivanhoe will
review the project and consider its next steps. The Company will
communicate those steps as soon as they are finalized. Ivanhoe
believes that the Tamarack project is economically attractive and
poses no operational, environmental or safety concerns.
Ivanhoe Energy is an independent international
heavy oil exploration and development 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 Canada, United
States, and Ecuador, with
business development opportunities worldwide. Ivanhoe Energy trades
on the Toronto Stock Exchange with the ticker symbol IE and on the
NASDAQ Capital Market with the ticker symbol IVAN. For more
information about Ivanhoe Energy Inc. please visit
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 the potential for commercialization and future
application of the heavy oil upgrading technology and other
technologies, statements relating to the continued advancement of
Ivanhoe Energy's projects, statements relating to the timing and
amount of proceeds of agreed upon and contemplated disposition
transactions, statements relating to anticipated capital
expenditures, statements relating to the timing and success
of regulatory review applications, 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 Company's projects will experience technological
and mechanical problems, new product development will not proceed
as planned, the HTL® technology to upgrade bitumen and
heavy oil may not be commercially viable, geological conditions in
reservoirs may not result in commercial levels of oil and gas
production, the availability of drilling rigs and other support
services, uncertainties about the estimates of reserves, the risk
associated with doing business in foreign countries, environmental
risks, changes in product prices, our ability to raise capital as
and when required, our ability to complete agreed upon and planned
asset dispositions, competition and other risks disclosed in
Ivanhoe Energy's 2012 Annual Report on Form 10-K filed with the
U.S. Securities and Exchange Commission on EDGAR and the Canadian
Securities Commissions on SEDAR.
SOURCE Ivanhoe Energy Inc.