Ivanhoe Energy discovers new natural gas field in California
PR Newswire - June 16, 2005 08:22
BAKERSFIELD, CA, June 16, 2005 /PRNewswire-FirstCall via COMTEX/ -- Ivanhoe Energy Inc. (NASDAQ: IVAN and TSX: IE, IE.U) has discovered natural gas at the North Salt Creek prospect located near the Cymric Oil Field in Kern County, California. The North Salt Creek prospect is located 45 miles west of Bakersfield, in a major hydrocarbon producing region along the west side of the San Joaquin Valley.
A 2,500-foot exploratory well was drilled and encountered multiple oil and gas bearing horizons in the Diatomite and Etchegoin Formations. A 27-hour multi-rate gas flow test of the Etchegoin Formation was conducted at rates of up to 810 Mcf per day with a stabilized flowing tubing pressure of 572 psi on a 20/48-inch choke. Based on testing, logs and core data, Ivanhoe Energy estimates that the well has over 250 feet of oil and gas bearing formations that are capable of production. The data also indicates that the reservoir has good porosity and permeability with no reservoir boundaries encountered by the test. The testing of this zone will be followed up with future well locations to test additional zones.
"This is an encouraging well drilled in an old producing area, which has been overlooked for exploration," said Leon Daniel, Ivanhoe Energy's President and CEO. "This exploration is consistent with our strategy of exploring for oil and gas in low risk areas where production can be achieved quickly." The well is located near existing pipelines and Ivanhoe Energy is discussing natural gas sales contracts with several potential gas purchasers in the area.
Ivanhoe Energy is the operator of the well and owns a 24% working interest in the well and the 370-acre prospect. The well is located at the north end of Cymric Oil Field in the San Joaquin Basin of California and is about 12 miles south of Ivanhoe Energy's discovery earlier this year at the Peach prospect near Antelope Hills, California.
Ivanhoe Energy is an independent international oil and gas exploration and development company building long-term growth in its reserve base and production. Core operations are in the United States and China, with business development opportunities worldwide. Ivanhoe Energy is a leader in technologically innovative methods designed to significantly improve the company's reserve base and production, including the upgrading of heavy oil to light oil, state-of-the-art drilling techniques, enhanced oil recovery (EOR) and the conversion of natural gas to liquids (GTL).
Ivanhoe Energy trades on the NASDAQ SmallCap market with the ticker symbol IVAN and on the Toronto Stock Exchange (TSX) with the symbol IE. On the TSX, Ivanhoe Energy is listed and traded in both Canadian and U.S. dollars. The U.S. dollar trading symbol on the TSX is IE.U.
Information contacts:
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In North America: Cindy Burnett 604-331-9830
In Asia: Patrick Chua 86-1370-121-2607 / 852-9193-4056
Website:
www.ivanhoe-energy.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 estimates of timing of drilling exploration and development wells, planned additional exploration, statements relating to the continued advancement of Ivanhoe Energy's projects, 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, geological conditions in the reservoir 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, environmental risks, changes in product prices, our ability to raise capital as and when required, competition and other risks disclosed in Ivanhoe Energy's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on EDGAR and the Canadian Securities Commissions on SEDAR.
RESERVES DATA AND OTHER OIL AND GAS INFORMATION: Ivanhoe Energy's disclosure of reserves data and other oil and gas information is made in reliance on an exemption granted to Ivanhoe Energy by Canadian securities regulatory authorities, which permits Ivanhoe Energy to provide disclosure in accordance with US disclosure requirements.
The information provided by Ivanhoe may differ from the corresponding information prepared in accordance with Canadian disclosure standards under National Instrument 51-101 (NI 51-101). Further information about the differences between the US requirements and the NI 51-101 requirements is set forth under the heading "Reserves, Production and Related Information" in Ivanhoe's Annual Report on Form 10-K.
SOURCE Ivanhoe Energy Inc.