October 14, 2008

Ivanhoe Energy to Develop Pungarayacu Heavy-Oil Field in Ecuador

Ivanhoe Energy Ecuador has signed a contract with Ecuador state oil companies Petroecuador and Petroproduccion to explore and develop the Pungarayacu heavy-oil field, utilizing Ivanhoe's heavy-to-light upgrading technology.

The contract covers project appraisal and development of Block 20, including production and upgrading of heavy oil. Block 20 is an area measuring approximately 1,100sqkm, 200km southeast of Quito, in the Amazon Basin.

Block 20 contains the 647sqkm Pungarayacu heavy-oil field, which was discovered approximately 30 years ago. Ivanhoe plans to apply its field-located heavy-to-light upgrading technology to the development of the Pungarayacu field.