Canada - Tamarack
The Athabasca region of the Western Canadian Sedimentary Basin is home to Ivanhoe Energy's Tamarack Project and represents a significant and strategic growth area for the company.
In mid-2008, Ivanhoe Energy closed its first transaction in Western Canada, acquiring Leases 10 and 6 from Talisman Energy Canada. Lease 10, renamed the Tamarack Project, is a 6,880-acre contiguous block located approximately 10 miles (16 kilometres) northeast of Fort McMurray. Ivanhoe Energy holds a 100 percent working interest in the Project, subject only to a 20% back-in right held by Talisman Energy, which expired in mid-2011.
Ivanhoe Energy plans to develop the resources at Tamarack utilizing state-of-the-art steam assisted gravity drainage (SAGD). SAGD is a thermal production method for heavy oil that utilizes pairs of stacked horizontal wells. Steam is injected into the reservoir through the upper well. As the steam rises and expands, it heats up the heavy oil, reducing its viscosity. Gravity forces the oil and condensed steam to drain into the lower well where it is produced.
Tamarack is an in-situ heavy oil development project using SAGD, and has none of the environmental challenges specific to oil sands mining projects such as extensive land disturbance, tailings ponds, and significant water usage.