IEP has entered into an agreement with a group of private landowners that hold mineral interests in Rio Blanco County, Colorado. The property is located near the richest part of the Piceance Creek Basin, one of the largest deposits of hydrocarbon resources in the world. In areas of the Basin, the oil shale contains more than one million barrels of oil per acre.

Under the agreement, IEP has secured the exclusive right to produce the oil shale resources on the property. The financial terms of the agreement, the identity of the landowners and the exact location of the property were held confidential.

According to Alan Forbes, IEP’s President, “the key is to produce the oil from oil shale in a manner that is both economical and environmentally friendly. With our patented Geothermic Fuel Cell™ (GFC™) approach, IEP has a unique technological solution to bring heretofore-untapped shale resources into economically viable production.”

Forbes explained how the GFC™ approach works. “Geothermic Fuel Cells™ represents a breakthrough approach for unconventional oil recovery. GFCs™ utilize high temperature solid oxide fuel cells to slowly heat the oil shale formation in an ‘in-situ’ manner. The heat travels through the rock, pressurizing the underground formation, lowering the viscosity of the oil in the shale, while creating ‘off-gases’ of high quality. Both the oil and gases are moved into collector wells, where they are extracted by conventional means.”

“The beauty of the GFC™,” continued Forbes “is that the GFC™ is designed to run off gases that are derived from the heated oil shale formation itself. Using a portion of the gases generated during the process, a GFC™ system thus becomes self-fueling, and also produces electricity as a by-product. Because of this, we simply have a better net energy balance – getting much more energy out than we put in – than other unconventional oil recovery methods. In addition, this is all accomplished without the major environmental impacts associated with oil shale mines or surface retorting alternatives.”

Mr. Forbes noted that this agreement was but the first of multiple agreements that are anticipated by IEP with oil shale landowners, research and development partners, and oil field service companies. “We are actively evaluating strategic partnerships, including other shale properties in the Green River Formation, any of which would materially expand our resource position from the already sizable level established with this first agreement.”

Forbes encouraged those with interests in oil shale development – landowners, strategic parties, and prospective investors – to contact IEP to discuss possible relationships of mutual benefit.

About Independent Energy Partners

Based in Denver, Colorado, Independent Energy Partners Inc. is an energy project and technology development company. Founded in 1991, IEP has been involved in the development of over 15 energy projects employing a wide range of technologies. Since 2002, IEP has focused on the development of its Geothermic Fuel Cell™ approach for production of oil and gas from unconventional resources such as oil shale. IEP has received broad patent protection on its GFC™ method, both in the US and Canada, and now holds rights to oil and gas production on privately held shale resource lands in Western Colorado containing more than 1.5 billion barrels of oil.

Additional information on IEP can be found at www.iepm.com, or obtained by contacting the company:

Alan K. Forbes, President
Independent Energy Partners, Inc.
9800 Mount Pyramid Court, Suite 400
Englewood, CO 80112
Phone: 303 792 0055
Email: aforbes@iepm.com