CALGARY, March 17, 2014 /CNW/ – Ivanhoe Energy Inc. (TSX: IE; NASDAQ: IVAN) announced today that following a thorough review the Company has suspended activity on its current Tamarack oil sands project.
Ivanhoe’s decision is based on the uncertainty that there is no timeline defined by the Alberta Energy Regulator (AER) for a new regulatory framework for shallow SAGD projects, and that there is no clarity as to a path for approval for its Tamarack application. Until there is greater regulatory certainty as to a path to approval, Ivanhoe will limit Tamarack spending to only essential items.
Ivanhoe considers its decision appropriate and in the best interests of all stakeholders, given the resulting delay in the approval process. Ivanhoe believes its application, as submitted, adheres to best practises for safe reservoir development. The Company is also evaluating novel and advanced technologies that could potentially result in early production from the Tamarack oil sands project.
The Company estimates that the regulatory uncertainty affects up to one million barrels per day of future shallow SAGD projects held by various resource owners. This future production represents a significant percentage of the Canadian Association of Petroleum Producers overall forecasted oil sands production growth.
Ivanhoe is working with other affected resource owners and the AER to support the early issuance of a long-term policy for shallow SAGD projects.
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.
SOURCE Ivanhoe Energy Inc.
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