Enhance Energy announces CO(2) pipeline system

Thu Jul 10, 2008 9:00am EDT

* Reuters is not responsible for the content in this press release.

Proposed Pipeline Project will be First in Alberta

CALGARY, July 10 /PRNewswire/ - Enhance Energy Inc. ("Enhance"), a private
Alberta-based energy company specializing in enhanced oil recovery (EOR),
today announced plans to build a new CO(2) transmission system through the
central part of Alberta.
    The Enhance CO(2) Pipeline System will be capable of gathering CO(2) from
several sources in Alberta's Industrial Heartland and transporting the CO(2)
to existing mature oil fields throughout South-Central Alberta. These
oilfields will see significant increases in production as CO(2) is permanently
stored in the reservoir. The capture and permanent storage of CO(2) will
result in significant reductions in emissions of greenhouse gases in Alberta.
    "Besides the enormous environmental benefits to Alberta, the pipeline
system will benefit Albertans through the jobs it will provide and the
incremental royalties and taxes it will generate through enhanced oil
recovery," said Susan Cole, President of Enhance. "Environmentally, the
completed project will be equivalent to taking 1,600,000 cars off the road, so
it's positive for Albertans on many levels. It's one of the largest projects
in the world and it's not experimental, it's based on proven technology."
    "We have been able to make rapid progress because of the leadership shown
by the Government of Alberta in establishing regulations on CO(2) emissions in
the Province. This week's climate change announcement to support Carbon
Capture and Storage will provide tremendous momentum for this project."
    The initial supply of CO(2) will by provided by North West Upgrading Inc.
and Agrium Inc. This project shows how an eco industrial complex, where one
industry relies on the waste products of another, can become a reality in
Alberta. Because the CO(2) emissions that North West Upgrading and Agrium
produce are permanently stored in the oil reservoir, they have the lowest
CO(2) emissions profiles for projects of their type in the world.
    Contracts for the design and project management of the new system have
been awarded to Sunstone Projects Ltd. Other technical and support contracts
have been awarded to Synergas Technologies Inc. for facilities engineering,
Scott Land and Lease as land agent and Worley Parsons for environmental
services.
    "We are excited to be involved with this industry leading project," said
Barry Bauhuis, President, Sunstone Projects Ltd. "This system will offer CO(2)
producers in the Heartland Industrial Area an economically viable way to deal
with CO(2) emissions and can be in service relatively quickly. The system will
be designed for capacity expansion and delivery flexibility. It's the first
world scale project for dealing with greenhouse gases and we're glad it's
happening here in Alberta."
    The system will have a design capacity of 25,000 tonnes per day with the
initial throughput planned at 5,000 tonnes per day.
    The Enhance CO(2) Pipeline System will consist of:

    -   drying and compression facilities at the north end in the Heartland
        Industrial Region on the Agrium and North West Upgrader sites, which
        will process the CO(2) that will be collected and bring the product
        up to pipeline specifications;

    -   a pump station east of Fort Saskatchewan in the Heartland Industrial
        Region, to be called the Elk Island Pump Station, that will boost
        pressure on the pipeline system;

    -   the pipeline operations and control centre located at the Elk Island
        Pump Station;

    -   receipt facilities at the south end of the system near Clive, which
        will allow distribution of the CO(2) to the conventional oil and gas
        fields in the area; and

    -   a high vapour pressure (HVP) pipeline between the source and the
        delivery point, connecting the north and south facilities.

    Enhance anticipates regulatory applications for the proposed project to be
completed by spring of 2009, and depending on the timing of regulatory
approval, construction is expected by the end of 2009, with operational
startup in 2011.
    About Enhance Energy Inc.
    Enhance Energy Inc. is a private Calgary-based company that specializes in
EOR involving the permanent sequestration of CO(2). Enhance Energy uses  CO
(2) to recover oil that would otherwise remain in the reservoir. Enhance is
the operator and 100% owner of Rowley Mannville water flood in Central
Alberta. To learn more please visit www.enhanceenergy.com.
SOURCE  Enhance Energy Inc.

Investor/Media Relations: Hilary Pettersen, Brookline Public Relations for
Enhance Energy Inc., P: (403) 538-5641 ext. 107, C: (403) 969-6983, E:
hpettersen@brooklinepr.com
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