September 29, 2004 REGINA, Saskatchewan -- The Petroleum Technology Research Centre (PTRC), located in the Regina Research Park, is using an investment from the governments of Canada and Saskatchewan to build a scale physical model of Vapex (Vapor Extraction), a new, environmentally-friendly oil recovery technology that prolongs the life of heavy oil reserves. The Honourable Ralph Goodale, Minister of Finance, on behalf of the Honourable Stephen Owen, Minister of Western Economic Diversification and Minister of State (Sport), and the Honourable Eric Cline, Saskatchewan Minister of Industry and Resources, announced a total of $750,000 in matching funds for the research project through the Canada-Saskatchewan Western Economic Partnership Agreement (WEPA). “Vapex technology will further enhance the strong performance of Saskatchewan’s oil industry,” said Minister Goodale. “The Government of Canada is committed to supporting research that explores path-breaking technologies that contribute to building a 21 st century economy.” The PTRC is strengthening Saskatchewan’s oil and gas sector by working with industry to develop and improve technologies like Vapex that increase our competitiveness and productivity,” said Minister Cline. “Significant economic, social and environmental benefits will result from the PTRC’s work on this project.” Vapex is a new method of extracting oil from existing horizontal wells to substantially increase oil production. It injects solvent gases into heavy oil reservoirs to dissolve viscous or ‘sticky’ oil so that it can be pumped to the surface. Since it does not use heat to recover the oil, it has the potential to reduce greenhouse gas emissions. The WEPA funding will go toward designing, purchasing and installing a 3-D scale model that will allow researchers to test the new technology and develop it more quickly for commercial applications. "Vapex research is a major focus for the PTRC, as it represents a significant advancement in Enhanced Oil Recovery technology that will assist our producers while reducing harm to the environment,” said Michael Monea, Executive Director of the PTRC. “This funding will allow us to press forward with this research very quickly, helping to achieve a green economy for Saskatchewan and Canada." In September 2003, the governments of Canada and Saskatchewan entered into the new four-year, $50 million Canada-Saskatchewan Western Economic Partnership Agreement (WEPA). The agreement focuses on increasing the competitiveness and productivity of the Saskatchewan economy.Funding for this project was provided for in the March 2004 federal budget. For additional information, contact: Joanne Mysak Manager, Communications Western Economic Diversification Canada Saskatoon, SK Tel: (306) 975-5942 E-mail: joanne.mysak@wd.gc.ca Bob Ellis Director, Public Affairs Corporate Resources Division Saskatchewan Industry and Resources Regina, Saskatchewan (306) 787-8277 www.ir.gov.sk.ca WD Toll-Free Number 1-888-338-WEST (9378) World Wide Web Site: English: http://www.wd.gc.ca French: http://www.deo.gc.ca Michael Monea Executive Director Petroleum Technology Research Centre (306) 787-8290 www.ptrc.ca
