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$1.8 MILLION IN NEW FUNDING ADVANCES CLEAN OIL RECOVERY TECHNOLOGY

Released on April 5, 2006

Saskatchewan is investing $1.8 million over three years in the Petroleum Technology Research Centre (PTRC) to help develop a more environmentally sensitive and energy-efficient enhanced oil recovery process for heavy oil reservoirs.

The JIVE (Joint Implementation of Vapour Extraction) Project will use the funds to further develop, demonstrate and evaluate vapour extraction technology that uses solvent gases instead of steam to extract heavy oil. The process reduces CO2 emissions and cuts fresh water use by over 90 per cent compared to other steam extraction methods.

Industry and Resources Minister Eric Cline says the funding puts the groundbreaking clean technology on the fast track toward commercialization.

"The PTRC is establishing a strong track record in commercializing new technologies because of the co-operation it gets from industry partners. Joint ventures like the JIVE Project create a unique opportunity to extend test results far beyond the confines of any laboratory," Cline said. "This new technology not only increases the amount of oil we can recover, it also decreases our impact on the environment."

The $9.6 million, three-year JIVE Project comprises the PTRC, Canadian Natural Resources Limited, Husky Energy, and Nexen Inc. The research will be conducted by Saskatchewan Research Council, University of Regina and the Alberta Research Council. The partners will pool their intellectual property and have it managed by the PTRC.

"Unlocking new oil reserves is an exciting challenge which our research organizations are very capable of achieving," PTRC Executive Director Mike Monea said. "The JIVE Project has already gathered worldwide attention, and we at the PTRC are proud to be on the leading edge of research helping industry with support from our provincial government."

Saskatchewan's oil and gas industry accounts for eight per cent of provincial gross domestic product. The industry invests $1.5 to $2 billion annually in exploration and development and generates over $1 billion annually in revenues for the provincial government.

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For More Information, Contact:

Jennifer Redston
Industry and Resources
Regina
Phone: (306) 7871691

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