| ||Thu Oct 27, 2005|
Derek Oil & Gas and Ivanhoe Energy Commence Continuous Steaming Operations at LAK Ranch Project
| ||VANCOUVER, CANADA - Ivanhoe Energy Inc. (NASDAQ: IVAN and TSX: IE, IE.U) and Derek Oil & Gas Corporation (TSX.V:DRK and OTCBB: DRKOF) have commenced continuous steaming operations at the enhanced oil recovery pilot program at the LAK Ranch field in Weston County, Wyoming. Oil production from the pilot producing well has increased from 10 barrels per day to 60 barrels per day during the initial six days of continuous operations. The oil is currently being sold for approximately US$57/barrel.|
Three vertical steam injection wells were drilled in late August and September. The new wells were completed in order to provide continuous steam injection above the existing horizontal wells. Profiles of steam through the pay section will be measured as part of the evaluation of the effectiveness of the process, with volumes and quality of steam monitored and adjusted as necessary. Production improvements will be monitored over the next several months.
Derek Oil & Gas holds a 53% interest in the 7,500-acre field in the Powder River Basin. Ivanhoe Energy currently holds 42% and 5% is held by another party. Following the pilot phase, Ivanhoe Energy has the option to increase its working interest to 60% by providing additional capital toward the initial development phase for a total of US$5 million, including the amounts spent on the pilot phase. Should Ivanhoe Energy elect not to proceed beyond the pilot phase, its working interest will be reduced to 15% and Derek Oil & Gas will become the operator.
Information contacts for Derek Oil & Gas Corporation:
VP Corporate Communications
Toll Free: 1-888-756-0066
Office Tel.: 604-331-1757
Information contacts for Ivanhoe Energy:
All locations: Cindy Burnett
1-604-331-9830 (North America)
In Asia: Patrick Chua
86-1370-121-2607 / 852-9193-4056
The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.
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 relating to the continued advancement of the LAK Ranch project, estimates of reserves and production, the potential commerciality of the LAK Ranch Project 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 and Derek Oil & Gas believe that their 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 LAK Ranch project will experience technological and mechanical problems, geological conditions in reservoir may not result in commercial levels of oil and gas production, uncertainties about the estimates of reserves, environmental risks, changes in product prices, the partners' ability to raise capital as and when required, competition and other risks disclosed in Ivanhoe's Annual Report on Form 10-K and Derek Oil & Gas Corporation's Form 20-F, 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 U.S. disclosure requirements.
The information provided by Ivanhoe Energy 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 U.S. requirements and the NI 51-101 requirements is set forth under the heading "Reserves, Production and Related Information" in Ivanhoe Energy's Annual Report on Form 10-K.
You can return to the Top of this page