Ivanhoe Energy Inc. has recently completed a significant run at its California Commercial Demonstration Facility (CDF). This run, the most successful to date, was the culmination of a multi-month program that included tailoring the CDF for the processing of heavy crude fractions in configurations matched to specific commercial opportunities that Ivanhoe Energy has identified.
The 26-hour run was concluded with a controlled shutdown at the end of the planned test period. This run processed California vacuum tower bottoms (VTBs), which are the heaviest component of California heavy oil. These VTBs, which are solid at room temperature, are heavier and more viscous than Athabasca bitumen that is found in the Canadian oil sands.
This test run, performed using the High Yield configuration, follows a program of enhancements to the CDF. The run confirmed these enhancements and was also geared to the generation of information related to certain new commercial configurations that the company has developed in recent months. These new configurations were developed in the context of commercial opportunities and are the result of extensive analysis of data from prior runs carried out by Ivanhoe Energy's technical team as well as outside experts in process engineering and upgrading technology. Ivanhoe Energy believes these new configurations may represent a simple and cost effective alternative for the processing of some of the more challenging heavy crudes around the world. The company will continue to pursue these innovative configurations in forthcoming tests and analyses.
"We are pleased to have completed this stage of the test program with such a successful run," said Joe Gasca, President and CEO of Ivanhoe Energy.
"We look forward to the results of the third party analysis on the samples that were produced. The stability of this run exceeded our expectations and confirms the work that has been carried out over recent months. This run is also expected to generate useful data regarding the new processing configurations that have been developed as we continue to evolve and improve the technology."
Ivanhoe Energy will continue with both its technical and commercial development initiatives, focusing on Athabasca bitumen from the Canadian oil sands, as well as ongoing work to support the due diligence efforts of potential partners. This most recent run was observed by a representative from one of several international oil companies that are currently assessing the technology and are in strategic discussions with Ivanhoe Energy. Ivanhoe Energy will also continue to pursue and evaluate the application of new configuration alternatives for the processing of heavy crudes and bitumen. Updates regarding potential advancements to the technology will be issued once the data from this run has been analyzed and additional testing is carried out.
Ivanhoe Energy's proprietary, patented heavy oil upgrading technology (HTL) upgrades the quality of heavy oil and bitumen by producing lighter, more valuable crude oil at lower costs and in smaller-sized plants than conventional technologies. The process also produces by-product energy that can be used to generate steam or electricity. In the process of targeting specific commercial applications, Ivanhoe Energy has developed what are believed to be patentable innovations, and expects that new innovations, improvements and optimizations will be continually integrated into the HTL process and protected as the HTL technology progresses.