Ivanhoe Energy’s Tamarack project marks major advance
Ivanhoe Energy has completed a major milestone towards commercial production at its Tamarack project with the submission of its regulatory application to the government of Alberta, Canada. The application is for the development of an integrated in-situ heavy oil project to be built in two phases, each 20,000 bpd, with ultimate production capacity of approximately 40,000 bpd (bitumen basis).
“Filing this application marks the culmination of over three years of detailed environmental, engineering and geological work as well as extensive socio-economic analysis,” Mr. Dyck said. “Our team has worked diligently to prepare and complete this application, and its submission to the regulatory authorities is the next critical step in our development schedule which targets first oil in 2013.”
The application contains a full description of the detailed project development plan and a comprehensive Environmental Impact Assessment. In support of the application, Basic Engineering and Design and Front End Engineering and Design were completed to generate a Class III (+25/-20%) capital cost estimate. Ivanhoe Energy’s top-tier contractors, AMEC in London, England and AMEC-BDR in Calgary, Alberta worked closely with Ivanhoe Energy’s technical team throughout this process.
As part of the application process, Ivanhoe Energy conducted extensive public consultation, including over 800 meetings and direct communications, to seek ideas and feedback from aboriginal groups, area residents, government and other key stakeholders.
Tamarack is a 6,880-acre contiguous block located approximately 10 miles northeast of Fort McMurray. Ivanhoe Energy’s independent reserve evaluator, GLJ Petroleum Consultants Ltd. (GLJ), has assigned best-estimate contingent resources of 441 million barrels of bitumen to the Tamarack project. Ivanhoe Energy plans to develop the resources at Tamarack utilizing steam assisted gravity drainage (SAGD).
The company expects that 12 well pads and approximately 160 SAGD well pairs will be required to fully develop and produce the targeted resource base. The engineering for the upstream portion of the project has been carried out by AMEC-BDR, Calgary. AMEC-BDR is a leading SAGD facility engineering and construction management firm specializing in complete engineering, procurement, construction management project delivery.
Ivanhoe Energy’s proprietary, HTL upgrading process converts heavy, viscous crude oil in the field to a lighter, transportable synthetic crude oil which commands a higher price in the marketplace, and does not require light oil as a blending agent for transport. In addition, natural gas for steam generation is not required because upgrading by-products are converted onsite into steam or power that can be used in field operations. HTL also allows Ivanhoe Energy to capture the majority of the value differential between light and heavy oil resulting in enhanced profitability and reduced earnings volatility.
Subject to the receipt of regulatory approvals from the Alberta Energy Resources Conservation
Board and Alberta Environment construction of the Tamarack project could commence in mid-2012, with first bitumen production expected towards the end of 2013. The regulatory process is expected to require approximately 18 to 24 months.
Comments