News Release Archive

Ivanhoe Energy Reports First Quarter 2012 Financial Results

Thu, 10 May 2012 08:05:00 -0400

May 10, 2012

Critical Projects Continue to Advance

Note: All figures are quoted in U.S. dollars unless otherwise noted.

CALGARY, May 10, 2012 /CNW/ - Ivanhoe Energy Inc. (TSX: IE; NASDAQ: IVAN) is reporting today its financial results and operating highlights for the first quarter of 2012.

In the first quarter, Ivanhoe Energy started drilling the exploration well in Ecuador, conducted seismic and took further steps in the process to achieve regulatory approval for Tamarack, made progress in establishing an HTL^TM mid-stream partnership with Coban for the Republic of Guatemala, conducted further testing in Mongolia and advanced previously disclosed corporate development activities. All of these activities are critical to building long-term shareholder value.

First Quarter Financial Summary

Ivanhoe Energy filed its quarterly financial report on Form 10-Q with the Securities and Exchange Commission and its Interim Financial Statements with the Canadian Securities Administrators for the period ended March 31, 2012.


(US$000s, except per share amounts)
(US$000s, except per share amounts)	Three months ended Mar. 31,
(unaudited)	2012	2011

Oil revenue	7,908	8,119
Net loss	(10,662)	(11,126)
Net loss per share, basic and diluted	(0.03)	(0.03)

Cash flow used in operating activities	(6,892)	(7,008)
Capital investments	8,925	13,815

Cash and cash equivalents (end of period)	42,260	80,798
Restricted cash	20,500	-

In the first quarter of 2012, the Company posted a net loss of $10.7 million, as compared to $11.1 million net loss in the same period of 2011. This decrease in 2012 is mainly attributable to lower general and administrative expenses.

Capital Expenditures, General and Administrative Expenses
The following summarizes the strategic investments made in the first quarter to progress priority projects:

Pungarayacu IP-17 drilling expenditures were $5.4 million;
Tamarack expenditures were $2.1 million for ongoing engineering activities, stakeholder engagement, and 2-D seismic acquisition and interpretation; and,
Zitong related expenditures were $0.4 million, in preparation for 160 square kilometres of 3-D seismic to be completed in Q2 2012 and other related activities.

G&A expenses for the Company were $2.9 million lower in the three months ended March 31, 2012, than in the comparable period of 2011. The reduction is primarily due to $2.5 million in accruals in the first quarter of 2011 that did not occur in 2012.

Liquidity and Capital Resources
Ivanhoe Energy is focused on enhancing its financial liquidity through various corporate development initiatives. In the first quarter the Company established a $50 million short-term secured credit agreement that consists of an initial tranche of $30 million that is fully underwritten by UBS AG, Canada Branch. The loan will mature after 12 months and includes an accordion feature which allows the Company to increase the total amount by up to an additional $20 million, should that be required.

Project Highlights

Pungarayacu - Ecuador
In the first quarter the Company began drilling IP-17, a well that is testing the potential of lighter oil resources in the southern portion of Block 20. Success with this well could prove beneficial for blending purposes with the heavier oil in the Block and improve overall project economics. Drilling continues; however slower than planned due to challenges in the Chapiza formation. Target depth for the well is 8,500 ft., and results are anticipated by mid-2012.

Tamarack - Canada
In the first quarter the Company conducted a 2-D seismic program over the Tamarack lease, focused specifically on the areas where drilling will occur in Phase 1 of the project. This data will support the regulatory application and well path planning. Additionally, significant work was completed to advance stakeholder relations. As is customary, regulators have provided the second round of Supplemental Information Requests (SIR's) and the Company will provide responses to this round of questions within the next two months.

Zitong - China
To satisfy the terms of the Supplementary Agreement, the Company is currently conducting a 160 sq. km. 3-D seismic program over the two largest structures on the Block, which will be completed by the end of May 2012.

Nyalga - Mongolia
Cutting samples recovered from the second well drilled in east-central Mongolia at the end of 2011 were sent for testing to two separate laboratories to determine the oil quality within the reservoir. Contracts have been tendered to conduct the necessary completion and testing services on this well; however, completion operations are contingent on the results obtained from the analysis.

Ivanhoe Energy is an independent international heavy oil exploration and development company focused on pursuing long-term growth in its reserves and production using advanced technologies, including its proprietary heavy oil upgrading process (HTL^TM). Core operations are in Canada, United States, Ecuador, China and Mongolia, with business development opportunities worldwide. Ivanhoe Energy trades on the Toronto Stock Exchange with the ticker symbol IE and on the NASDAQ Capital Market with the ticker symbol IVAN.

For more information about Ivanhoe Energy Inc. please visit www.ivanhoeenergy.com.

FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning the potential benefits of Ivanhoe Energy's heavy oil upgrading technology, the potential for commercialization and future application of the heavy oil upgrading technology and other technologies, statements relating to the continued advancement of Ivanhoe Energy's projects, the potential for successful exploration and development drilling, dependence on new product development and associated costs, statements relating to anticipated capital expenditures, the necessity to seek additional funding, statements relating to increases in production and other statements which are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions relating to matters that are not historical facts are forward-looking statements. Although Ivanhoe Energy believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that the Company's projects will experience technological and mechanical problems, new product development will not proceed as planned, the HTL^TM technology to upgrade bitumen and heavy oil may not be commercially viable, geological conditions in reservoirs may not result in commercial levels of oil and gas production, the availability of drilling rigs and other support services, uncertainties about the estimates of reserves, the risk associated with doing business in foreign countries, environmental risks, changes in product prices, our ability to raise capital as and when required, competition and other risks disclosed in Ivanhoe Energy's 2011 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on EDGAR and the Canadian Securities Commissions on SEDAR.

Ivanhoe Energy signs Memorandum of Understanding with Coban Oil and Gas to conduct HTL™ Study

Wed, 09 May 2012 20:31:00 -0400

May 9, 2012

Partnership supports Ivanhoe Energy's Commercialization Strategy for HTL™

CALGARY, May 9, 2012 /CNW/ - Ivanhoe Energy Inc. (TSX: IE; NASDAQ: IVAN) announced today that it has signed a Memorandum of Understanding with Coban Oil and Gas ("Coban"), to assess the feasibility of building a Heavy to Light (HTL™) facility to upgrade heavy crude oil in the Republic of Guatemala.

"We were greatly honored that the President of Guatemala, His Excellency Otto Perez Molina and members of the Guatemalan government were present for the MOU signing ceremony," said Carlos A. Cabrera, Ivanhoe Energy's Executive Chairman. "Their presence emphasizes the importance of this project and the benefits it can bring to the people of Guatemala."

Ivanhoe Energy is implementing a multi-faceted strategy to commercialize its HTL technology. This plan involves the installation of HTL facilities on existing Ivanhoe Energy projects, such as Tamarack in Canada and Pungarayacu in Ecuador; as well as midstream applications. In a midstream installation Ivanhoe Energy plans to build, own and operate HTL plants to upgrade heavy oil for third parties. The Company is actively pursuing this midstream model in various regions of the world and has advanced several opportunities in North, Central and South America.

Key Terms of the Memorandum of Understanding with Coban

Ivanhoe Energy and Coban will conduct a technical and economic feasibility study to establish the conditions under which the parties can upgrade and improve the native crude of Guatemala for domestic consumption and international export.
This feasibility study will contain all the elements needed to reach an investment decision to support building an HTL facility that will upgrade at least 10,000 barrels per day of crude oil.
Once the feasibility work is completed the parties expect to execute a Definitive Agreement to create a joint venture company whose mandate will be to build an HTL facility, licenced for operation in the Republic of Guatemala.

Background on the Republic of Guatemala

The Republic of Guatemala has a representative system of government where power is equally exercised between the legislative, executive and judicial branches of government. His Excellency Otto Pérez Molina has been the President since January 2012.

The Government is focused on enhancing the exploration and development of the Country's reserves, to create greater opportunity for energy self-sufficiency and an increase in gross domestic product. Currently Guatemala has 120 million barrels of proven reserves with significantly more under the category of contingent and prospective resources. Oil exports are currently at 11,300 barrels per day, and refined oil products imports are approximately 75,000 barrels per day. At present, the Country has relatively small refining capacity and the native crude is considered heavy and sour, requiring complex upgrading processes to substantially improve its value on international markets and ease the requirements to convert it to transportation fuels. As a result, the private sector has been engaged to produce the oil reserves and establish refining capacity, with a goal of ultimately enhancing the quality of life for the citizens of Guatemala.

Coban is a company located in Guatemala, owned by a group of professionals with extensive oil and gas experience, and specifically dedicated to this project. The principals of Coban have experience in upstream operations in Latin America through their involvement in Vatpetrol, oil field services, drilling and work-over operations, drilling and completion fluids, and terminal and oil storage operations services. Additionally, the principals of Coban are involved in a multidisciplinary geosciences consulting group "OTS Latinamerica LLC" [www.OTSLatinamerica.net], that has worked for the last 8 years in Guatemala and other Central American countries studying and evaluating oil and gas reserves and resources. This work has been sponsored by Corporación Andina de Fomento, the World Bank and the United Nations Program for Development.

Ivanhoe Energy is an independent international heavy oil development and production company focused on pursuing long-term growth in its reserves and production using advanced technologies, including its proprietary heavy oil upgrading process (HTL™). Core operations are in Canada, United States, Ecuador, Mongolia, and China, with business development opportunities worldwide. Ivanhoe Energy trades on The Toronto Stock Exchange with the symbol IE and on the NASDAQ Capital Market with the ticker symbol IVAN.

For more information about Ivanhoe Energy please visit www.ivanhoeenergy.com.

FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements related to the completion of this transaction, receipt of required waivers and approvals, satisfaction of conditions to closing and timing thereof, the execution of a definitive PSA and timing thereof, the statements relating to Ivanhoe Energy's strategy, the continued advancement of its projects and realization of the value of its assets and commercialization of its technology, and the pursuit of other transactions and initiatives and the manner in which this transaction will benefit the core business, the ability to have the security posted by Ivanhoe Energy for the performance bond released at closing and other statements which are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions relating to matters that are not historical facts are forward-looking statements. Although Ivanhoe Energy believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the ability to obtain all required approvals, consents and waivers from the government and third parties and the timing thereof, the risk associated with doing business in foreign countries and other risks disclosed in Ivanhoe Energy's 2010 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on EDGAR and the Canadian Securities Commissions on SEDAR.

Ivanhoe Energy reports 2011 financial results

Thu, 15 Mar 2012 08:10:00 -0400

Mar 15, 2012

Year of exploration sets the stage for progress in 2012

Note: All figures are quoted in U.S. dollars unless otherwise noted.

CALGARY, March 15, 2012 /CNW/ - Ivanhoe Energy Inc. (TSX: IE; NASDAQ: IVAN) is reporting today its 2011 financial results and an update on the Tamarack and Ecuador projects.

Ivanhoe Energy is a heavy oil exploration and development company with a portfolio of early-stage assets that have significant potential but require more investment before they can achieve production and sustained cash flow.

In 2011 the Company initiated a number of exploration activities, including a seismic program in the southern part of the Ecuador block, the drilling of two wells in Mongolia, and testing of two natural gas wells in the Zitong block in China. The Company will build on these important investments in 2012.

Year End Financial Summary

Ivanhoe Energy has filed its year-end financial report on Form 10-K with the United States Securities and Exchange Commission for the year ended December 31, 2011.

Financial Position


(US$000s, except per share amounts)	Three months ended Dec. 31,		Year ended Dec. 31,
(US$000s, except per share amounts)	2011	2010	2011	2010
Financial
Net loss	(5,882)	(19,431)	(25,276)	(26,582)
Net loss per share, basic and diluted	(0.02)	(0.06)	(0.07)	(0.08)
Net cash used in operating activities	(7,567)	(11,670)	(26,245)	(31,290)

Continuing Operations
Oil revenue	9,126	6,166	37,403	21,720
Capital expenditures	2,982	17,130	51,060	70,980
Total assets	413,710	394,418	413,710	394,418
Cash and cash equivalents	16,890	68,317	16,890	68,317
Restricted cash	20,500	-	20,500	-

Overall, in 2011 the Company posted a net loss of $25.3 million, which is down from the $26.6 million loss posted in 2010. The Company closed the year with $16.9 million in cash and cash equivalents. Our cash was impacted both by our ongoing operations and investments and by a requirement to post a $20 million performance bond at the end of 2011 to secure our Supplemental Agreement for the Zitong acreage.

Capital Expenditures, Operating Costs and General and Administrative Expenses

Capital expenditures totaled $51.1 million in 2011. These expenditures went to various Ivanhoe Energy projects.

At the Zitong Block in China, the Yixin-2 and Zitong-1 gas wells were tested and fracture stimulated.
At the Dagang oil field, four wells were drilled and completed in 2011. One additional well started in 2010 was completed in 2011.
In the Nyalga Basin of Mongolia two exploration wells were drilled.
In Ecuador the Company completed a 190-km 2-D seismic survey of Block 20.

In 2011, China-based expenses rose by $6.0 million, primarily due to the windfall profits tax administered by the People's Republic of China, which rises with higher oil prices. Additionally, greater human resources were required to operate the Dagang oil field, conduct testing on the Zitong block and drill wells in Mongolia.

The Company also continued to improve our Heavy to Light (HTL^TM) technology. Operating costs increased due to successfully upgrading the heavy oil recovered from the IP-5B well in Ecuador, and planned maintenance associated with enhancements to the HTL Feedstock Test Facility. Additionally, professional fees were incurred to provide engineering for the possibility of placing an HTL facility in an offshore environment.

General and administrative expenses in 2011 were $5.6 million higher as compared to 2010. These expenses were largely due to increased human resources to complete the work achieved at each project, in addition to professional fees associated with various financing and corporate activities.

Liquidity and Capital Resources

Ivanhoe Energy's continued focus is to establish long-term financing at the project level. However, in 2011 and early 2012 the Company took a number of other steps to support liquidity.

On June 9, 2011 Ivanhoe Energy announced that it issued Cdn$73.3 million of unsecured convertible debentures which will mature on June 30, 2016. The convertible debentures have an annual interest rate of 5.75%, which is payable semi-annually on the last day of June and December of each year, which commenced on December 31, 2011.
On December 30, 2011 the Company entered into an unsecured loan agreement for $10.0 million with Ivanhoe Capital Finance Ltd. The funds were advanced on January 3, 2012 and will incur an annual interest rate of 13.3%.
Today, Ivanhoe Energy also announced that it established a $50 million short-term secured credit agreement consisting of an initial tranche of $30 million that is fully underwritten by UBS AG, Canada Branch. The loan will mature after 12 months and includes an accordion feature which allows the Company to increase the total amount by up to an additional $20 million, should that be required. The loan involves customary terms and covenants for a transaction of this nature.

Project Highlights

Tamarack - Canada

The regulatory approval process for the Tamarack project continues to progress. Regulators have reviewed the responses to the first round of Supplemental Information Requests (SIR's) and as is customary in the review process, the Company expects to receive a complete set of second round SIR's in the second quarter 2012. Although the Company is anticipating receiving approval of the application by the end of 2012, timing is subject to the pace of the regulatory process.

Following regulatory approval, finalization of a comprehensive financing plan and subsequent project sanctioning by Ivanhoe Energy's Board of Directors, the engineering, construction, commissioning and start-up phase of the project will span a timeframe of approximately 36 months. This timeline is based on projects of similar size and scope.

Pungarayacu - Ecuador

At the end of February 2012 the Company began drilling the exploration well (IP-17) to test both the Hollin and pre-cretaceous structures in the southern part of Block 20, which were identified in the seismic program completed in 2011.

The well will be drilled to a total depth of approximately 8,500 ft., testing the potential of lighter oil resources which could prove beneficial for blending purposes and overall project economics. Drilling results are anticipated by mid-2012.

Ivanhoe Energy is an independent international heavy oil exploration and development company focused on pursuing long-term growth in its reserves and production using advanced technologies, including its proprietary heavy oil upgrading process (HTL^TM). Core operations are in Canada, United States, Ecuador, China and Mongolia, with business development opportunities worldwide. Ivanhoe Energy trades on The Toronto Stock Exchange with the ticker symbol IE and on the NASDAQ Capital Market with the ticker symbol IVAN.

For more information about Ivanhoe Energy Inc. please visit www.ivanhoeenergy.com.

FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning the potential benefits of Ivanhoe Energy's heavy oil upgrading technology, the potential for commercialization and future application of the heavy oil upgrading technology and other technologies, statements relating to the continued advancement of Ivanhoe Energy's projects, the potential for successful exploration and development drilling, dependence on new product development and associated costs, statements relating to anticipated capital expenditures, the necessity to seek additional funding, statements relating to increases in production and other statements which are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions relating to matters that are not historical facts are forward-looking statements. Although Ivanhoe Energy believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that the Company's projects will experience technological and mechanical problems, new product development will not proceed as planned, the HTL technology to upgrade bitumen and heavy oil may not be commercially viable, geological conditions in reservoirs may not result in commercial levels of oil and gas production, the availability of drilling rigs and other support services, uncertainties about the estimates of reserves, the risk associated with doing business in foreign countries, environmental risks, changes in product prices, our ability to raise capital as and when required, competition and other risks disclosed in Ivanhoe Energy's 2011 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on EDGAR and the Canadian Securities Commissions on SEDAR.

Ivanhoe Energy establishes $50 million secured loan financing

Thu, 15 Mar 2012 07:45:00 -0400

Mar 15, 2012

Proceeds to energize short-term project activities

Note: All figures are quoted in U.S. dollars unless otherwise noted.

CALGARY, March 15, 2012 /CNW/ - Ivanhoe Energy Inc. (TSX: IE; NASDAQ: IVAN) today announced it entered into a $50 million short-term secured credit agreement consisting of an initial tranche of $30 million, fully underwritten by UBS AG, Canada Branch. The agreement also contains a $20 million accordion feature that can be exercised by the company, if required.

The loan, which was exclusively arranged by UBS Securities, will mature after 12 months and involves customary terms and covenants for a transaction of this nature.

"Ivanhoe Energy has established this short-term loan as an interim measure while we finalize longer term arrangements, currently underway, that are applicable and appropriate for our projects. This loan will fund activities in Ecuador, China, Mongolia, Canada and other selected areas of business development," said President and Chief Operating Officer, David Dyck.

Ivanhoe Energy is an independent international heavy oil exploration and development company focused on pursuing long-term growth in its reserves and production. Core operations are in Canada, Ecuador, China and Mongolia, with business development opportunities worldwide. Ivanhoe Energy trades on The Toronto Stock Exchange with the ticker symbol IE and on the NASDAQ Capital Market with the ticker symbol IVAN.

For more information about Ivanhoe Energy please visit www.ivanhoeenergy.com.

FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning the potential benefits of Ivanhoe Energy's heavy oil upgrading technology, the potential for commercialization and future application of the heavy oil upgrading technology and other technologies, statements relating to the continued advancement of Ivanhoe Energy's projects, the potential for successful exploration and development drilling, dependence on new product development and associated costs, statements relating to anticipated capital expenditures, the necessity to seek additional funding, statements relating to increases in production and other statements which are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions relating to matters that are not historical facts are forward-looking statements. Although Ivanhoe Energy believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that the Company's projects will experience technological and mechanical problems, new product development will not proceed as planned, the HTL technology to upgrade bitumen and heavy oil may not be commercially viable, geological conditions in reservoirs may not result in commercial levels of oil and gas production, the availability of drilling rigs and other support services, uncertainties about the estimates of reserves, the risk associated with doing business in foreign countries, environmental risks, changes in product prices, our ability to raise capital as and when required, competition and other risks disclosed in Ivanhoe Energy's 2011 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on EDGAR and the Canadian Securities Commissions on SEDAR.

Clarifications on Ivanhoe Energy's subsidiary to assign its participating interest in the Zitong gas Production Sharing Contract

Wed, 18 Jan 2012 18:49:00 -0500

Jan 18, 2012

CALGARY, Jan. 18, 2012 /CNW/ - Ivanhoe Energy Inc. (TSX: IE) (NASDAQ: IVAN), and its wholly owned subsidiary, Sunwing Zitong Energy (SZE), announced on January 11, 2012 the intention for SZE to sell 100% of its participating interest in the Production Sharing Contract for the Zitong block in China's Sichuan basin to Shell China Exploration and Production Company Limited (Shell China). While the Production Sharing Contract (PSC) allows the Parties of the PSC to release the relevant information to the press, including the news related to the proposed participating interests, CNPC/PetroChina's prior consultation and approval is required as a condition precedent. CNPC/PetroChina has informed Ivanhoe Energy and SZE that the January 11, 2012 press release regarding the proposed transaction between SZE and Shell China was not cleared through CNPC/PetroChina in accordance with the provisions under the PSC and CNPC/PetroChina's accepted procedures prior to having been released and therefore did not comply with the terms and conditions of the PSC. Ivanhoe Energy has apologized to CNPC/PetroChina for this unintentional oversight and given CNPC/PetroChina assurances that all future communications and activities (including, but not limited to, any press release and discussion or negotiation with respect to the proposed transaction) in furtherance of the proposed transaction will strictly go through the terms and conditions of the PSC and CNPC/PetroChina's accepted procedures.

SZE has now initiated the process of seeking the requisite government and partner approvals. Key conditions, which must be satisfied before the transaction may be completed, include:

CNPC/PetroChina transaction review;
Waiver by CNPC/PetroChina of its Right Of First Refusal (ROFR) under the PSC;
CNPC/PetroChina's approval of the transaction;
Approval by the Ministry of Commerce of the People's Republic of China of the definitive Purchase and Sale Agreement, an amendment to the PSC, an amendment to the Joint Operating Agreement (JOA) and the completion of the transaction;
Waiver by Mitsubishi Gas Chemical Company (MGC) of its ROFR under the JOA between SZE and MGC, under which the parties jointly participate (90/10) in the PSC;
MGC approval of the transaction; and,
Execution of the Purchase and Sale Agreement between SZE and Shell China, an amendment to the PSC between CNPC/PetroChina, Shell China and MGC and an amendment to the JOA between Shell China and MGC.

"This is an important transaction for Ivanhoe Energy, and we intend to work collaboratively and under the direction of CNPC/PetroChina and the Chinese government to effect this transaction in accordance with all legal requirements," commented Robert Friedland, Executive Co-Chairman.

All parties involved in this transaction are now fully engaged and working through the required processes.

Ivanhoe Energy is an independent international heavy oil development and production company focused on pursuing long-term growth in its reserves and production using advanced technologies, including its proprietary heavy oil upgrading process (HTL^TM). Core operations are in Canada, United States, Ecuador, China and Mongolia, with business development opportunities worldwide. Ivanhoe Energy trades on The Toronto Stock Exchange with the symbol IE and on the NASDAQ Capital Market with the ticker symbol IVAN.

For more information about Ivanhoe Energy please visit www.ivanhoeenergy.com.

FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements related to the completion of this transaction, receipt of required waivers and approvals, satisfaction of conditions to closing and timing thereof, the execution of a definitive PSA and timing thereof, the statements relating to Ivanhoe Energy's strategy, the continued advancement of its projects and realization of the value of its assets and commercialization of its technology, and the pursuit of other transactions and initiatives and the manner in which this transaction will benefit the core business, the ability to have the security posted by Ivanhoe Energy for the performance bond released at closing and other statements which are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions relating to matters that are not historical facts are forward-looking statements. Although Ivanhoe Energy believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the ability to obtain all required approvals, consents and waivers from the government and third parties and the timing thereof, the risk associated with doing business in foreign countries and other risks disclosed in Ivanhoe Energy's 2010 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on EDGAR and the Canadian Securities Commissions on SEDAR.

Ivanhoe Energy's interest in China's Zitong Block to be sold to Royal Dutch Shell subsidiary for cash proceeds of up to US$160 million

Wed, 11 Jan 2012 08:52:00 -0500

Jan 11, 2012

Transaction will enable Ivanhoe Energy to finance and advance its core heavy oil business

CALGARY, Jan. 11, 2012 /CNW/ - Ivanhoe Energy Inc. (TSX: IE; NASDAQ: IVAN) announced today that its wholly owned subsidiary, Sunwing Zitong Energy (SZE), has signed a binding Memorandum of Understanding to sell 100% of its participating interest in the Production Sharing Contract for the Zitong block in China's Sichuan Basin to Shell China Exploration and Production Company Limited, a subsidiary of Royal Dutch Shell. The transaction is subject to government approvals and other prescribed conditions.

"Our strategy is very straight forward," said Robert Friedland, an Ivanhoe Energy Executive Co-Chairman. "Ivanhoe Energy, through Sunwing, has been active in China for more than 10 years. We have made an important discovery of natural gas and we have an understanding of the potential of the block. However, this opportunity arose at an appropriate decision point and we have opted to focus our energy and resources on the commercialization of our Heavy-to-Light (HTL) heavy oil upgrading process and the development of our attractive oil projects. This means we will sell our Zitong asset to a company that has the financial and technical resources to fully develop the potential of the block for the benefit of the people of China."

Key Transaction Terms

In exchange for SZE's interest in the Zitong block, Ivanhoe will receive a payment of up to US$85 million as reimbursement for past qualified and recoverable costs incurred. In addition, Ivanhoe will receive a further payment upon closing of up to US$75 million, contingent on the timing of the receipt of full government approvals and third-party consents and waivers for the transaction.

Following completion of the transaction, Shell will assume the US$20 million performance bond that Ivanhoe Energy was required to recently post as part of the completion and signing of the Supplementary Agreement with the China National Petroleum Corporation (CNPC). The security underlying the performance bond is expected to be released back to Ivanhoe Energy subsequent to the close of the transaction.

UBS has been retained as financial advisor to Ivanhoe Energy and to provide the company with an opinion, from a financial point of view, on the consideration to be received.

Closing deadline of December 31, 2012

SZE and Shell expect to sign the definitive Purchase and Sale Agreement associated with the proposed transaction before the start of Chinese New Year celebrations on January 23, 2012, and after Shell completes its confirmatory due diligence. Both parties intend to work expeditiously to close the transaction by a deadline of December 31, 2012, following which the transaction will terminate unless both parties mutually agree to extend the date.

Maximizing return and building value

Carlos Cabrera, an Ivanhoe Energy Executive Co-Chairman, said the company's core business remains the international exploration, development and bringing to market of heavy and conventional oil, using Ivanhoe Energy's proprietary HTL oil upgrading process. "Our immediate objective is to maximize return on equity by actively pursuing a number of corporate development and financing initiatives, including strategic joint ventures, to de-risk our projects from technical and financial perspectives. Specifically, as it relates to the Zitong project, we have reviewed a number of alternatives to achieve this objective. In the end, a divestiture of the entire Zitong interest was the clear choice as this transaction will dramatically improve the balance sheet and provide greater financial flexibility for the company."

David Dyck, Ivanhoe Energy's President and Chief Operating Officer, said the company's many emerging assets will gain in value as they are developed. "We will focus our resources on our oil projects in Canada, Ecuador, Mongolia and the Dagang project in China, as well as the commercialization of our proprietary HTL upgrading process. This transaction is an important step in demonstrating our ability to finance our projects, realize the value inherent in our assets and build a substantial oil exploration and production company."

Ivanhoe Energy to host a conference call

To discuss and answer questions about the intended transaction, Ivanhoe Energy will conduct a conference call for investors, analysts and other interested parties on Thursday, January 12, at 7:30 am Mountain Time (9:30 - am Eastern time).

Please contact the conference call operator five minutes prior to the call, noting "Ivanhoe Energy" as the company. The conference line is available:

For participants in Canada and the United States via 1-888-231-8191
For participants in the Toronto area and internationally via 1-647-427-7450

Additionally, a simultaneous webcast of the conference call will be available through www.ivanhoeenergy.com

The call will be archived for later playback until January 17^th by dialing 1-416-849-0833 and entering the pass code 41856037. For the next three months the call can also be accessed via the webcast at www.ivanhoeenergy.com.

Ivanhoe Energy is an independent international heavy oil development and production company focused on pursuing long-term growth in its reserves and production using advanced technologies, including its proprietary heavy oil upgrading process (HTL^TM). Core operations are in Canada, United States, Ecuador, Mongolia, and China, with business development opportunities worldwide. Ivanhoe Energy trades on The Toronto Stock Exchange with the symbol IE and on the NASDAQ Capital Market with the ticker symbol IVAN.

For more information about Ivanhoe Energy please visit www.ivanhoeenergy.com.

Ivanhoe Energy appoints industry leader Carlos A. Cabrera as Executive Co-Chairman

Wed, 14 Dec 2011 02:01:00 -0500

Dec 14, 2011

Corporate leadership team strengthened to capitalize on world-wide opportunities and to build shareholder value

VANCOUVER, Dec. 14, 2011 /CNW/ - The Board of Directors of Ivanhoe Energy Inc. (TSX: IE) (NASDAQ: IVAN) today announced the appointment of Carlos A. Cabrera as Executive Co-Chairman as part of a realignment of the company's leadership team.

Mr. Cabrera, who joined the Ivanhoe Energy board as an independent Director in May 2010, has more than 35 years of experience in the petroleum, petrochemical and gas processing industries. Since 2009, he has served as President and Chief Executive Officer of China's National Institute of Low Carbon and Clean Energy (NICE), based in Beijing; prior to which he was Chairman, President and Chief Executive Officer of UOP LLC, a Honeywell company.

"Mr. Cabrera has the experience and first-hand knowledge of international energy markets to guide our determination to successfully capitalize on world-wide opportunities for our advanced technologies and, in the process, to ensure that we fulfill our commitment to building shareholder value," said Robert Friedland, who has been serving as Executive Chairman and Chief Executive Officer of Ivanhoe Energy Inc. since 2008 and now becomes Executive Co-Chairman.

"In addition to our Pungarayacu Project in Ecuador, we also see significant opportunities in Latin America, North America, the Middle East and Asia for our proprietary Heavy-to-Light upgrading process that we will be pursuing with the added benefits of his leadership and the professional recognition he has earned in his long career in the energy industry," said Mr. Friedland.

Mr. Friedland also confirmed that David Dyck is continuing in his current senior executive roles as President and Chief Operating Officer of Ivanhoe Energy Inc. and as President and Chief Executive Officer of the subsidiary, Ivanhoe Energy Canada.

As part of the corporate realignment, Mr. Friedland - who is Ivanhoe Energy's founding Chairman - will maintain his close involvement with the formulation and execution of the company's strategic initiatives around the world while working closely with Mr. Cabrera and Mr. Dyck. Mr. Friedland will also continue as Co-Chairman of Ivanhoe Energy's Asia-focused subsidiary, Pan-China Resources Ltd. He has discontinued his role as Chief Executive Officer of Ivanhoe Energy Inc.

Robert Abboud has relinquished his position as Co-Chairman of the Board of Directors of Ivanhoe Energy Inc., while continuing as the Board's Lead Independent Director.

Mr. Abboud and Mr. Friedland also will continue to serve on the Board's restructured Executive Committee with Mr. Dyck and directors Howard Balloch and Peter Meredith. Mr. Cabrera will chair the Executive Committee.

Mr. Cabrera said Ivanhoe Energy's HTL upgrading technology is uniquely positioned to help satisfy the global energy industry's increasing dependence on known reserves of heavier oil.

"In addition to enabling the economic production of previously unexploited heavy oils, HTL has shown that it can extend the life of large oil fields that are increasingly producing heavier crude oils that are more difficult to transport to markets."

Mr. Cabrera received the 2007 Fuels and Petrochemicals Division Leadership Award from the American Institute of Chemical Engineers in recognition of his contributions to the industry. In 2008, he received Honeywell's Senior Leadership Award, the company's highest honor for Honeywell leaders, and in 2009 he was named to the ranks of the Executive Corporate Elite chosen by the California-based Hispanic Business Magazine. Mr. Cabrera, a member of the Global Advisory Board of the University of Chicago's Booth School of Business, has a Bachelor of Science degree in Chemical Engineering from the University of Kentucky and a Master's degree in Business Administration from the University of Chicago.

Ivanhoe Energy is an independent international heavy oil development and production company focused on pursuing long-term growth in its reserves and production using advanced technologies, including its proprietary heavy oil upgrading process (HTL^TM). Core operations are in Canada, United States, Ecuador, China and Mongolia, with business development opportunities worldwide. Ivanhoe Energy trades on The Toronto Stock Exchange with the symbol IE and on the NASDAQ Capital Market with the ticker symbol IVAN.

For more information about Ivanhoe Energy please visit www.ivanhoeenergy.com.

FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning the potential benefits of Ivanhoe Energy's heavy oil upgrading technology, the potential for commercialization and future application of the heavy oil upgrading technology and other technologies, statements relating to the continued advancement of Ivanhoe Energy's projects, the potential for successful exploration and development drilling, dependence on new product development and associated costs, statements relating to anticipated capital expenditures, the necessity to seek additional funding, statements relating to increases in production and other statements which are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions relating to matters that are not historical facts are forward-looking statements. Although Ivanhoe Energy believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that the Company's projects will experience technological and mechanical problems, new product development will not proceed as planned, the HTL technology to upgrade bitumen and heavy oil may not be commercially viable, geological conditions in reservoirs may not result in commercial levels of oil and gas production, the availability of drilling rigs and other support services, uncertainties about the estimates of reserves, the risk associated with doing business in foreign countries, environmental risks, changes in product prices, our ability to raise capital as and when required, competition and other risks disclosed in Ivanhoe Energy's 2010 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on EDGAR and the Canadian Securities Commissions on SEDAR.

Ivanhoe Energy reports third quarter 2011 financial results and operating highlights

Wed, 09 Nov 2011 08:05:00 -0500

Nov 9, 2011

Project advancement remains priority to reach value milestones

Note: All figures are quoted in U.S. dollars unless otherwise noted.

CALGARY, Nov. 9, 2011 /CNW/ - Ivanhoe Energy Inc. (TSX: IE; NASDAQ: IVAN) today reported financial results and operating highlights for the third quarter of 2011. Ivanhoe Energy has filed its quarterly financial report on Form 10-Q with the United States Securities and Exchange Commission and its interim financial statements with the Canadian Securities Administrators for the period ended September 30, 2011.

"Our management team continues to make progress in each of our projects," said President and Chief Operating Officer, David Dyck. "Dagang is producing, conversations with potential Heavy-to-Light (HTL^TM) partners are advancing and we are taking thoughtful steps in Ecuador, Mongolia, China and with the Tamarack project in Canada."

Third quarter financial summary


(US$000s, except per share amounts) (unaudited)	Three months ended Sept. 30,		Nine months ended Sept. 30,
(US$000s, except per share amounts) (unaudited)	2011	2010	2011	2010

Net loss	(4,157)	(9,605)	(19,394)	(7,151)
Net loss per share, basic and diluted	(0.01)	(0.03)	(0.06)	(0.02)

Cash and cash equivalents (end of period)	58,168	93,098	58,168	93,098
Cash flow used in operating activities	(5,214)	(7,913)	(18,678)	(19,620)

Oil revenue	10,769	4,177	28,277	15,554
Capital expenditures	16,843	17,475	48,078	53,850

Oil revenues were $10.8 million in the third quarter of 2011 compared to $9.4 million in the second quarter. This increase was due to higher production volumes at Dagang and stronger realized prices. The net loss in the nine months ended September 30, 2011 was $19.4 million compared to a $7.2 million net loss in the comparative period of 2010. Although oil revenue has increased in 2011, net income was impacted by higher operating and general and administrative expenses. Operating expenses were $5.5 million during the third quarter of 2011, compared to $5.3 million in the second quarter of 2011. These expenses were primarily from China and included an increased windfall levy, administered by the People's Republic of China, following the rise in oil prices. General and administrative expenses in the nine months of 2011 were $37.4 million, compared to $28.4 million in the same period of 2010. This increase was due to greater professional fees (legal and engineering) and additional staff, office and travel costs required to advance the various projects.

Capital investments in the third quarter of 2011 were $16.8 million compared to $17.4 million in the second quarter of 2011. The third quarter expenditures were primarily from activities in China, including flow testing and the running of down-hole recorders at the Yixin-2 and Zitong-1 gas wells, and ongoing drilling and fracture stimulation activities at Dagang.

"With $58 million in cash heading into the fourth quarter, we will end the year in a comfortable working capital position providing some degree of flexibility into early 2012, until more concrete financing plans can be implemented. Our focus is to continue advancing our projects by analyzing all scenarios and diligently managing our working capital to achieve valuation milestones," said Dyck.

Subsequent events

Tamarack - Canada

Alberta Environment and the Energy Resources Conservation Board have completed their initial review of Ivanhoe Energy's Application for the Tamarack integrated oil sands project, which is comprised of a two-phased 40,000 bbl/d steam-assisted gravity drainage (SAGD) thermal recovery and HTL facility. The first round of Supplementary Information Requests (SIRs) was received from the regulators in the third quarter of 2011 and the Company will submit responses to these SIRs in the fourth quarter of 2011. It is anticipated that the regulatory approval process will be complete later in 2012. Project advancement, as currently envisaged, is subject to regulatory approval and financing.

Pungarayacu - Ecuador

Following the analysis of the seismic program, Ivanhoe Energy will be proceeding in late 2011 with one exploration well into the deeper Hollin and pre-cretaceous horizons in the southern part of the Pungarayacu Block. This well will test the potential of lighter oil resources, which would prove beneficial for blending purposes and overall project economics. Drilling results are anticipated within the first quarter of 2012.

Nyalga - Mongolia

On October 27 the Company announced the successful drilling of its second exploration well on the Nyalga block in east-central Mongolia, on schedule and on budget. Oil staining, fluorescence and increases in background gas were observed in several sand sections, which are positive indicators of the presence of oil. The logs are currently being reviewed, with results expected before the end of 2011. The well will be tested in the first half of 2012.

Zitong - China

Ivanhoe Energy reached agreement with PetroChina and will be signing a Supplemental Agreement to complete an appraisal program by the end of June 2014. The work program consists of 160 sq. km of 3D seismic, and drilling and completing three horizontal wells on the Guan and Wen structures. The seismic work will be completed in the first half of 2012.

This news release summarizes the Company's 2011 third quarter results of operations and financial condition and should be read in conjunction with its Quarterly Report on Form 10-Q for the period ended September 30, 2011, which contains its unaudited condensed consolidated financial statements and Management's Discussion and Analysis of Financial Condition and Results of Operations. The Form 10-Q was filed on November 9, 2011. Copies may be obtained from the Ivanhoe Energy website at www.ivanhoeenergy.com, on EDGAR at www.sec.gov or SEDAR at www.sedar.com.

_________________________________________________________________________________________________________________

Ivanhoe Energy is an independent international heavy oil development and production company focused on pursuing long-term growth in its reserves and production using advanced technologies, including its proprietary heavy oil upgrading process (HTL^TM). Core operations are in Canada, United States, Ecuador, China and Mongolia, with business development opportunities worldwide. Ivanhoe Energy trades on The Toronto Stock Exchange with the symbol IE and on the NASDAQ Capital Market with the ticker symbol IVAN.

For more information about Ivanhoe Energy please visit www.ivanhoeenergy.com.

FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning the potential benefits of Ivanhoe Energy's heavy oil upgrading technology, the potential for commercialization and future application of the heavy oil upgrading technology and other technologies, statements relating to the continued advancement of Ivanhoe Energy's projects, the potential for successful exploration and development drilling, dependence on new product development and associated costs, statements relating to anticipated capital expenditures, the necessity to seek additional funding, statements relating to increases in production and other statements which are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions relating to matters that are not historical facts are forward-looking statements. Although Ivanhoe Energy believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that the Company's projects will experience technological and mechanical problems, new product development will not proceed as planned, the HTL technology to upgrade bitumen and heavy oil may not be commercially viable, geological conditions in reservoirs may not result in commercial levels of oil and gas production, the availability of drilling rigs and other support services, uncertainties about the estimates of reserves, the risk associated with doing business in foreign countries, environmental risks, changes in product prices, our ability to raise capital as and when required, competition and other risks disclosed in Ivanhoe Energy's 2010 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on EDGAR and the Canadian Securities Commissions on SEDAR.

Ivanhoe Energy to conduct testing of second Mongolia well in early 2012

Thu, 27 Oct 2011 08:03:00 -0400

Oct 27, 2011

CALGARY, Oct. 27, 2011 /CNW/ - David Dyck, President and Chief Operating Officer of Ivanhoe Energy Inc. (TSX: IE) (NASDAQ: IVAN), and Gerald Moench, President of Ivanhoe's wholly-owned subsidiary Sunwing Energy Ltd., announced today that Ivanhoe has successfully finished drilling the company's second exploration well on the Nyalga block in east-central Mongolia and have prepared the well for completion and testing early next year.

"Drilling and open-hole logging operations on the second Nyalga well have been completed to a total depth of 2,300 metres and the well has been cased and secured," said Mr. Moench.

"Oil staining, fluorescence and increases in background gas were observed in several sand sections, which are positive indicators of the presence of oil. The log results will be reviewed and analyzed to provide guidance on the best approach to completing the well once weather conditions permit, likely in the spring of 2012."

The well, N16-2E-B, was drilled on schedule and on budget, on an eight-square-kilometre structure approximately 12 kilometres from the first well drilled earlier this year. Like the first well, the second well has provided vital information that will be correlated with existing and future seismic data to help guide the ongoing drilling program. The drill rig will now return to China and appropriate equipment will be arranged to conduct the next phase of work. Ivanhoe Energy has invested US$11.7 million on all exploration activities to date on the block, fulfilling its obligations in the exploration phase of the Production-Sharing Contract.

"We look forward to testing the well and to beginning the next phase of exploration in Mongolia, including further seismic and drilling," said Mr. Dyck.

"Mongolia is in the early days of oil exploration. Since it does not have the oil field operations infrastructure to enable continued operation through the harsh winter months, we will take time during the winter to correlate data and determine the best way to proceed."

Sunwing Energy Ltd. is party to a Production-Sharing Contract with the Mongolian Government for Block XVI, a 12,679-square-kilometre area that encompasses the Nyalga Basin and is adjacent to the north-south Trans-Mongolian Railway.

Ivanhoe Energy is an independent, international, heavy-oil development and production company focused on pursuing long-term growth in its reserves and production using advanced technologies, including its proprietary heavy-oil upgrading process (HTL^TM). Core operations are in Canada, the United States, Ecuador, China and Mongolia, with business development opportunities worldwide. Ivanhoe Energy trades on The Toronto Stock Exchange with the symbol IE and on the NASDAQ Capital Market with the ticker symbol IVAN.

For more information about Ivanhoe Energy Inc. please visit www.ivanhoeenergy.com.

FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements relating to the continued advancement of Ivanhoe Energy's projects, the potential for successful exploration and development drilling, statements relating to establishing resources and other statements which are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions relating to matters that are not historical facts are forward-looking statements. Although Ivanhoe Energy believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that the Company's projects will experience technological and mechanical problems, geological conditions in reservoirs may not result in commercial levels of oil and gas production, the availability of drilling rigs and other support services, the risk associated with doing business in foreign countries including the risk that legislative changes could adversely affect the commercial viability of carrying on business in those countries, environmental risks, changes in product prices, our ability to raise capital as and when required, competition and other risks disclosed in Ivanhoe Energy's 2010 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on EDGAR and the Canadian Securities Commissions on SEDAR.

Ivanhoe Energy drilling team mobilized on second planned test well in Mongolia

Tue, 13 Sep 2011 08:07:00 -0400

Sep 13, 2011

CALGARY, Sept. 13, 2011 /CNW/ - David Dyck, President and Chief Operating Officer of Ivanhoe Energy Inc. (TSX: IE) (NASDAQ: IVAN), and Gerald Moench, President of Ivanhoe's wholly-owned subsidiary Sunwing Energy Ltd., announced today that Ivanhoe's drilling team has begun moving the drilling rig to the site of the second exploration well in east-central Mongolia.

"Our drilling program was designed to advance our knowledge of Mongolia's Nyalga Basin, a highly prospective area with numerous potential structures that could be tested by drilling," Mr. Dyck said. "These initial wells are testing two different structures with diverse seismic characteristics."

Mr. Dyck said testing has been completed at the first exploration well, N16-1E-1A, which was drilled to a depth of 2,003 metres. The first well has been plugged and abandoned and the rig disassembled for mobilization.

"While the testing of our first well did not encounter oil shows in the reservoir, it has provided vital information that we are combining with our seismic data to help guide our continuing drilling program."

The second well is on an eight-square-kilometre structure approximately 12 kilometres from the first well. Drilling of the second well is expected to begin by the end of this month toward a target depth of approximately 2,500 metres.

"Mongolia in general, and the Nyalga Basin in particular, is in the early days of oil exploration, requiring a great deal of study to understand its full potential. We remain optimistic that our exploration efforts will enable the discovery of oil resources at our Mongolian project," Mr. Dyck added.

Ivanhoe Energy is an independent international heavy oil development and production company focused on pursuing long-term growth in its reserves and production using advanced technologies, including its proprietary heavy oil upgrading process (HTL^TM). Core operations are in Canada, United States, Ecuador, China and Mongolia, with business development opportunities worldwide. Ivanhoe Energy trades on The Toronto Stock Exchange with the symbol IE and on the NASDAQ Capital Market with the ticker symbol IVAN.

For more information about Ivanhoe Energy Inc. please visit www.ivanhoeenergy.com.

FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements relating to the continued advancement of Ivanhoe Energy's projects, the potential for successful exploration and development drilling, statements relating to establishing resources and other statements which are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions relating to matters that are not historical facts are forward-looking statements. Although Ivanhoe Energy believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that the Company's projects will experience technological and mechanical problems, geological conditions in reservoirs may not result in commercial levels of oil and gas production, the availability of drilling rigs and other support services, the risk associated with doing business in foreign countries including the risk that legislative changes could adversely affect the commercial viability of carrying on business in those countries, environmental risks, changes in product prices, our ability to raise capital as and when required, competition and other risks disclosed in Ivanhoe Energy's 2010 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on EDGAR and the Canadian Securities Commissions on SEDAR.

Ivanhoe Energy spuds first exploration well in Mongolia

Tue, 16 Aug 2011 08:17:00 -0400

Aug 16, 2011

CALGARY, Aug. 16, 2011 /CNW/ - David Dyck, President and Chief Operating Officer of Ivanhoe Energy Inc. (TSX: IE) (NASDAQ: IVAN), and Gerald Moench, President of Sunwing Energy Ltd., announced today that N16-1E-1A, Sunwing's first exploration well on its Nyalga Block XVI in Mongolia, spudded Saturday, August 13. As of today, the well has been drilled to 437m and surface casing has been run and cemented.

"This is an important step in our exploration program in Mongolia," said David Dyck. "Given the results of our 2D seismic study, we are optimistic of the potential to discover oil resources in Mongolia."

The well is located on a structure approximately 32 km²in size and will be drilled to a total depth of approximately 2500m. The well is being drilled by the Daqing Exploration Company and drilling of the well will take approximately 30 days, with completion and testing to be carried out as required. The Company intends to drill two wells on two separate structures, with the option to drill up to three additional wells in this initial exploratory program.

Ivanhoe Energy is an independent international heavy oil development and production company focused on pursuing long-term growth in its reserves and production using advanced technologies, including its proprietary heavy oil upgrading process (HTL^TM). Core operations are in Canada, United States, Ecuador, China and Mongolia, with business development opportunities worldwide. Ivanhoe Energy trades on The Toronto Stock Exchange with the symbol IE and on the NASDAQ Capital Market with the ticker symbol IVAN.

For more information about Ivanhoe Energy Inc. please visit www.ivanhoeenergy.com.

FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning the potential benefits of Ivanhoe Energy's heavy oil upgrading technology, the potential for commercialization and future application of the heavy oil upgrading technology and other technologies, statements relating to the continued advancement of Ivanhoe Energy's projects, the potential for successful exploration and development drilling, dependence on new product development and associated costs, statements relating to anticipated capital expenditures, the necessity to seek additional funding, statements relating to increases in production and other statements which are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions relating to matters that are not historical facts are forward-looking statements. Although Ivanhoe Energy believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that the Company's projects will experience technological and mechanical problems, new product development will not proceed as planned, the HTL technology to upgrade bitumen and heavy oil may not be commercially viable, geological conditions in reservoirs may not result in commercial levels of oil and gas production, the availability of drilling rigs and other support services, uncertainties about the estimates of reserves, the risk associated with doing business in foreign countries, environmental risks, changes in product prices, our ability to raise capital as and when required, competition and other risks disclosed in Ivanhoe Energy's 2010 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on EDGAR and the Canadian Securities Commissions on SEDAR.

Image with caption: "Sunwing's first exploratory well: Nyalga Block XVI, N16-1E-1A (CNW Group/Ivanhoe Energy Inc.)". Image available at: http://photos.newswire.ca/images/download/20110816_C4008_PHOTO_EN_2194.jpg

/C O R R E C T I O N from Source -- Ivanhoe Energy Inc./

Wed, 10 Aug 2011 08:17:00 -0400

Aug 10, 2011

In c2791 transmitted at 08:17e today, a clerical error occurred in the "Second quarter financial summary" section. The table's header should have read: "2011" above the first and third columns and "2010" above the second and fourth columns. Corrected copy follows:

Ivanhoe Energy reports second quarter 2011 financial results and operating highlights

Focuses on execution, HTL^TM patent extensions, convertible debt financing

Note: All figures are quoted in U.S. dollars unless otherwise noted.

CALGARY, Aug. 10, 2011 /CNW/ - Ivanhoe Energy Inc. (TSX: IE; NASDAQ: IVAN) today reported financial results and operating highlights for the second quarter of 2011. Ivanhoe Energy has filed its quarterly financial report on Form 10-Q with the United States Securities and Exchange Commission and its Interim Financial Statements with the Canadian Securities Administrators for the period ended June 30, 2011.

Highlights

In June the Company obtained broader and more extensive patent protection for its HTL^TM intellectual property in Canada. This patent builds on and complements other issued and/or filed patents related to the core HTL^TM technology and its petroleum applications. The portfolio includes the core patent, issued in the first quarter of 2011 related to the underlying HTL^TMtechnology, which expires in 2028.
The Company announced that heavy crude oil extracted from its IP-5B well in the Pungarayacu field in Block 20 in Ecuador was successfully upgraded to local pipeline specifications using the Company's proprietary HTL upgrading process.
The Company issued Cdn$73.3 million of convertible unsecured subordinated debentures, maturing on June 30, 2016. A portion of the proceeds were used to repay a promissory note due to Talisman Energy Canada. The remaining balance of the funds raised will be used for ongoing capital and operating expenditures.
Revenues were $9.5 million in the second quarter of 2011 compared to $6.1 million in the second quarter of 2010 due to a combination of stronger realized commodity prices and increased production. Higher volumes were allocated to Ivanhoe Energy for reimbursement of capital expenditures incurred at Dagang.
In the second quarter of 2011, $6.5 million in cash flow was used in operations, consistent with $6.3 million of cash flow used in operations during the second quarter of 2010.
The net loss for the second quarter of 2011 was $4.1 million compared to net income of $9.3 million for the second quarter of 2010, as a result of higher operating and general administrative expenses as well as lower non-cash foreign currency exchange and derivative instrument gains.
General and administrative expenses were $11.7 million in the second quarter of 2011 compared with $9.1 million in the second quarter of 2010. The year-over-year increase stemmed from higher staff numbers associated with the Quito office build-out and our drilling operations in Sunwing, contract engineering work related to Ivanhoe's HTL technology and financing fees incurred in the recent Convertible Debentures issuance.
The Company's cash and cash equivalents balance at June 30, 2011 was $133.3 million, which will be used to continue advancing Ivanhoe's ongoing projects in Canada, Ecuador, China and Mongolia.

"During the quarter we continued to prudently position Ivanhoe Energy to advance our heavy oil and conventional oil and gas projects," said President and Chief Operating Officer, David Dyck.

"In particular, the Company enhanced the intrinsic value of our heavy-to-light (HTL) upgrading technology by successfully testing it on Ecuadorian heavy crude and by securing patent protection to 2028 in key jurisdictions. We also put in place attractive new convertible debt financing to underwrite our operations and business development efforts."

Second quarter financial summary


(US$000s, except per share amounts) (unaudited)	Three months ended June 30,		Six months ended June 30,
(US$000s, except per share amounts) (unaudited)	2011	2010	2011	2010

Net income (loss)	(4,111)	9,259	(15,237)	2,454
Net income (loss) per share, basic	(0.01)	0.03	(0.04)	0.01
Net income (loss) per share, diluted	(0.01)	0.01	(0.04)	(0.05)

Cash and cash equivalents (end of period)	133,308	116,667	133,308	116,667
Cash flow used in operating activities	(6,455)	(6,276)	(13,464)	(11,707)

Oil revenue	9,389	6,047	17,508	11,377
Capital expenditures	17,420	12,877	31,235	36,375

Oil revenue totalled $9.4 million in the second quarter of 2011 compared with $8.1 million in the first quarter of 2011. This increase was due to a combination of higher production volumes and stronger realized prices. Cash flow used in operating activities was $6.5 million during the second quarter of 2011, consistent with $6.5 million in the first quarter of 2011. In the second quarter of 2011, capital investments increased to $17.4 million compared to $14.3 million in the first quarter of 2011.

Liquidity and Capital Resources

Ivanhoe Energy's cash and cash equivalents were $133.3 million at June 30, 2011. These funds will be allocated to both capital and operating activities that advance Ivanhoe's project initiatives as well as business development efforts to the point where appreciative valuation milestones are recognized by independent parties.

CDN$73 million convertible debt financing

On June 9, 2011, the Company issued Cdn$73.3 million in 5.75% convertible unsecured subordinated debentures ("the Debentures") at a price of $1,000 per debenture. At the holder's option, the debentures may be converted into common shares of Ivanhoe Energy prior to June 30, 2016, the maturity date, and the business day immediately preceding the date specified by Ivanhoe Energy for redemption of the debentures. The conversion price will be Cdn$3.36 per share, subject to adjustment in certain circumstances. The proceeds were used to repay a Cdn$40 million promissory note to Talisman Energy Canada with the balance to be used for ongoing capital and operating expenditures.

Subsequent events

Zitong Block

Ivanhoe's wholly-owned subsidiary, Sunwing Energy, submitted the Provisional Overall Development Plan to the Joint Management Committee and PetroChina on June 30, 2011. As communicated in Ivanhoe's press release on June 15, 2011, this plan includes the acquisition of 3D seismic and the drilling of horizontal wells on the Block that will include multistage fracture stimulation. The Company is currently in discussions with PetroChina on final details of the Plan. This plan is to be conducted over the next 24 months.

Both the Yixin 2 and Zitong 1 wells have completed their respective long term built up tests and the down hole recorders have been recovered and the wells shut-in and secured. Data collected from these recorders has been delivered to contracted third-party tight gas experts to conduct detailed analysis and modeling of reservoir parameters and potential completion and stimulation techniques to assist the Company in developing exploitation programs on the Zitong Block.

Mongolia Block XVI

Sunwing is currently mobilizing the drilling equipment and supplies to N16-1E, its first exploratory drill site on Nyalga block XVI, which will be drilled on a structure approximately 32 sq km in size and to an approximate depth of 2500m. As of this date, the drilling rig is more than 75 percent assembled. Remaining minor drilling preparations will continue over the next few weeks, followed by the spud of Sunwing's first exploration well in Mongolia. Drilling of the well will take approximately 30 days, with completion and testing to be carried out as required. The Company intends to drill two wells initially, with the option to drill up to three additional wells, and remains optimistic of the potential to find oil resources in Mongolia.

Ecuador Seismic Program

As communicated in Ivanhoe's June 15, 2011 news release, Ivanhoe's wholly-owned Ecuadorian subsidiary commissioned a seismic program over the southern part of the Pungarayacu Block. The first phase of this program is now complete and analysis is still underway. Early interpretation is encouraging as it indicates deeper faulting, with the potential to trap lighter oil resources which could prove beneficial for blending purposes and overall project economics. Additionally, initial internal interpretations may also suggest an extension of the field beyond what was originally estimated.

This news release summarizes the Company's 2011 second quarter results of operations and financial condition and should be read in conjunction with its Quarterly Report on Form 10-Q for the period ended June 30, 2011, which contains its unaudited condensed consolidated financial statements and Management's Discussion and Analysis of Financial Condition and Results of Operations. The Form 10-Q was filed on August 9, 2011. Copies may be obtained from the Ivanhoe Energy website at www.ivanhoeenergy.com, on EDGAR at www.sec.gov or SEDAR at www.sedar.com.

Ivanhoe Energy is an independent international heavy oil development and production company focused on pursuing long-term growth in its reserves and production using advanced technologies, including its proprietary heavy oil upgrading process (HTL^TM). Core operations are in Canada, United States, Ecuador, China and Mongolia, with business development opportunities worldwide. Ivanhoe Energy trades on The Toronto Stock Exchange with the symbol IE and on the NASDAQ Capital Market with the ticker symbol IVAN.

For more information about Ivanhoe Energy Inc. please visit www.ivanhoeenergy.com.

FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning the potential benefits of Ivanhoe Energy's heavy oil upgrading technology, the potential for commercialization and future application of the heavy oil upgrading technology and other technologies, statements relating to the continued advancement of Ivanhoe Energy's projects, the potential for successful exploration and development drilling, dependence on new product development and associated costs, statements relating to anticipated capital expenditures, the necessity to seek additional funding, statements relating to increases in production and other statements which are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions relating to matters that are not historical facts are forward-looking statements. Although Ivanhoe Energy believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that the Company's projects will experience technological and mechanical problems, new product development will not proceed as planned, the HTL technology to upgrade bitumen and heavy oil may not be commercially viable, geological conditions in reservoirs may not result in commercial levels of oil and gas production, the availability of drilling rigs and other support services, uncertainties about the estimates of reserves, the risk associated with doing business in foreign countries, environmental risks, changes in product prices, our ability to raise capital as and when required, competition and other risks disclosed in Ivanhoe Energy's 2010 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on EDGAR and the Canadian Securities Commissions on SEDAR.

New comprehensive HTL™ (Heavy-to-Light) heavy oil upgrading patent issued in Canada

Mon, 27 Jun 2011 08:00:00 -0400

Jun 27, 2011

New comprehensive HTL™ (Heavy-to-Light) heavy oil upgrading patent issued in Canada

Ivanhoe's HTL process offers clear alternative for upgrading heavy oil worldwide

CALGARY, June 27, 2011 /CNW/ - David Dyck, President and Chief Operating Officer and Dr. Michael Silverman, Executive Vice President and Chief Technology Officer of Ivanhoe Energy, Inc. (TSX: IE; NASDAQ: IVAN), today announced that a new patent was issued in Canada related to Ivanhoe's proprietary HTL™ (Heavy-to-Light) heavy oil upgrading process. This patent broadens and extends Ivanhoe Energy's HTL intellectual property in Canada, home to Ivanhoe Energy's Tamarack heavy oil project and a key market for the Company's HTL heavy oil expansion plans.

The new patent, issued in the name of Ivanhoe Energy, covers petroleum applications of the core HTL process and protects the HTL process itself as well as the upgraded products produced from the HTL process. This patent builds on, and is a complement to other issued and/or filed patents related to the core HTL technology and it's petroleum applications. This portfolio of patents includes a recently issued core patent related to the underlying HTL technology that expires in 2028, as announced in a press release dated March 28, 2011.

"This new patent is an important addition to the existing patent portfolio protecting our HTLtechnology," said Dr. Silverman. "We are most pleased to have expanded and extended our HTL intellectual property in Canada as this jurisdiction represents a key growth area for the Company."

"From a strategic perspective, advancements in the protection of our intellectual property in North America are vitally important," commented David Dyck. "Ivanhoe continues to believe that North American heavy to light crude oil differentials will widen from present levels over the longer term, which will challenge heavy oil project economics. HTL represents a viable, environmentally responsible, cost competitive alternative to protect and capture these economics, creating Ivanhoe shareholder value as a result."

Heavy oil production and processing is a cornerstone and primary focus of Ivanhoe Energy, and HTL heavy oil upgrading is a key competitive advantage of Ivanhoe Energy as it executes its heavy oil business plan worldwide. This plan includes expansion opportunities based on upstream integrated HTL applications such as the Tamarack project in Western Canada, as well as HTL midstream heavy oil upgrading opportunities worldwide.

Ivanhoe Launches New Website

Ivanhoe also announces that it will launch a new interactive website effective June 28, 2011. The newly redesigned site offers an easy-to-navigate platform that provides quick access to a wide array of information about Ivanhoe Energy. The new website will be found at the Company's current website address, www.ivanhoeenergy.com.

Ivanhoe Energy Inc. is an independent, international heavy-oil development and production company focused on pursuing long-term growth in its reserves and production using advanced technologies, including its proprietary, patented heavy-to-light upgrading process (HTL™). Core operations are in Canada, the United States, Ecuador, China and Mongolia, with business development opportunities worldwide. Ivanhoe's shares trade on the Toronto Stock Exchange under the symbol IE and on the NASDAQ Capital Market with the ticker symbol IVAN.

For more information about Ivanhoe Energy Inc., please visit our web site at www.ivanhoeenergy.com.

FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements which are not historical facts such as Ivanhoe's expectation that North American heavy to light crude oil differentials will widen thereby creating more challenging economics for traditional heavy oil projects with the result that the HTL™ technology will represent a viable alternative to protect and capture these economics, thereby creating Ivanhoe shareholder value. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions relating to matters that are not historical facts are forward-looking statements. Although Ivanhoe Energy believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include risks that the HTL™ technology may not be commercially viable, market acceptance of the HTL™ technology may not be as anticipated, Ivanhoe Energy's lack of history in developing commercial HTL™ opportunities and other risks disclosed in Ivanhoe Energy's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on EDGAR and the Canadian Securities Commissions on SEDAR.

Ivanhoe Energy issues operational update on major development and exploration projects

Wed, 15 Jun 2011 08:04:00 -0400

Jun 15, 2011

Focus on execution remains key priority

CALGARY, June 15, 2011 /CNW/ - David Dyck, President and Chief Operating Officer of Ivanhoe Energy Inc. (TSX: IE, NASDAQ: IVAN), today issued an operational update on the company's major initiatives and outlined the company's priorities to advance domestic and international projects toward production.

"Ivanhoe Energy is well positioned to take advantage of current economic conditions and continue to advance the development of our heavy oil and conventional oil and gas projects in key resource regions around the world," Mr. Dyck said.

"We have a diverse portfolio of high-quality assets and can report some very positive developments. Our primary approach to financing our ongoing activities is focussed on identifying and securing joint-venture partners to join us in our projects. Where applicable, we also are considering financing at the subsidiary company level for specific projects, which would establish a significant level of self-sufficiency within the subsidiaries for financing and to fund ongoing capital expenditures."

Notable gas exploration achievements in China's Zitong Block

Sunwing Energy, Ivanhoe Energy's 100%-owned Asia-focussed subsidiary, successfully completed two hydraulic-fracture stimulation programs on the Yixin-2 and Zitong-1 wells in China's Sichuan Province. The results of these treatments, and subsequent flow testing, have confirmed that stimulation of these high-pressure reservoirs can be achieved and that multi-stage stimulation technology, combined with horizontal drilling technology, can be applied in the Zitong Block.

The company's drilling and stimulation activities have resulted in positive achievements in the evaluation of the reservoirs in the Zitong Block. The company has successfully produced gas at measurable rates in both the Xu-4 and the Xu-5 formations. We have demonstrated our ability to successfully conduct a high-pressure hydraulic fracture in both reservoirs and place proppant in these fractures, providing valuable information for the design and execution of future fracture treatments in horizontal wellbores. The data recorded to date in the vertical wellbores provide sufficient information to model expected production performance in a horizontal wellbore. While permeabilities of the reservoirs result in rapidly declining flow rates and pressures in the pre-stimulation testing, these rates of decline are consistent with pre-stimulation flows in most tight sands. In fact, the actual recovery of gas in all of Sunwing's tests exceeded results of pre-stimulation testing in many tight-gas projects in North America. The company is confident that the results of the current testing will allow successful design and implementation of horizontal wellbores with subsequent stimulation using the latest technology for multi-stage fracture stimulations.

Sunwing is planning a 150-square-kilometre, 3-D seismic program to cover certain areas of the Guan Structure, the Guan East Structure and part of the Wen Structure to help plan and design a horizontal well-path for two horizontal wells - one each in the Guan and Wen structures. The company also will review the potential to drill a Guan East well with a horizontal leg as a first-stage test of the regional gas play, or re-enter the Zitong-1 wellbore to complete a horizontal section in the Xu-4 Zone. This program will be carried out over the next 24 months and will provide the groundwork for development of the Zitong Block.

Results of the work carried out to date have reinforced Sunwing's original resource estimates for the Zitong Block and the company is working toward implementing its onward program as soon as possible.

Gerald Moench, President of Sunwing, said the company believes that the Zitong Block contains between 0.3 (P90) and 1.7 (P10) trillion cubic feet of total gas initially-in-place, with a best estimate (P50) of 0.75 trillion cubic feet. "The successful development of this block will have a dramatic impact on the value attributable to Ivanhoe Energy and we are working towards implementing a development program as soon as possible."

Sunwing is the operator of the 659,840-acre (1,031-square-mile) Zitong exploration block in Sichuan and holds a 90% contractor interest in a Petroleum Contract with PetroChina Company Limited. Mitsubishi Gas Chemical Company, of Japan, holds the remaining 10% interest. Sunwing is currently conducting further evaluation to permit classification of the resource numbers quoted into more specific categories pursuant to National Instrument 51-101, to estimate the recoverable portion of these in-place volumes and to determine their commerciality. In the meantime, there is no certainty that it will be commercially viable to produce any portion of these resources

Yixin-2 well

On December 21, 2010, Sunwing announced a natural-gas discovery at its Yixin-2 well, which tested at initial pre-stimulation flow rates of up to 13,000 Mcf/d. The well was drilled to a vertical depth of 4,165 metres (13,660 feet) into the Xu-4 reservoir and was the first of two wells drilled in Phase II of the exploration period to satisfy certain contractual commitments on the block.

Following the post-perforation clean-up flow, and a short shut-in period, the Yixin-2 well was flow tested at a controlled rate of between 1,250 to 1,500 Mcf/d for a 48-hour period, then shut-in for a 21-day pressure build-up period to obtain critical pressure data and to organize high-pressure pumping equipment to carry out a fracture stimulation of the Xu-4. A 100-ton hydraulic-fracture stimulation utilizing high strength proppant was later successfully conducted on the Xu-4 formation.

The well was flow tested for a 30-day period through a test separator and currently is shut-in on a 60-day final pressure build up. During this flow period, 47% of the frac fluid used to stimulate the well was recovered. The initial gas flow rate after fracturing was approximately 800 Mcf/d at a flowing pressure of 7,100 psi. The final flow rate before shut-in was 73 Mcf/d at a flowing pressure of 86 psi. Following the post-frac flow test, down hole electronic recorders were run with the current shut-in period to extend to mid- to late-July. Results of the build-up, as well as the flow-test data, will provide critical reservoir information necessary for forward planning and in discussions with our partner, PetroChina.

The post-fracture stimulation results observed are not uncommon in tight-gas sand reservoirs; the rate declines the longer the well is flowed as more of the tighter formation matrix is tested. The key to unlocking the potential of tight-gas reservoirs is to generate induced fractures to provide sufficient surface flow area to maintain a constant commercial inflow of gas. The fracture operation on Yixin-2 was pumped as planned and, from initial indications, the well has an effective induced fracture system. Preliminary indications are that the permeability of the Xu-4 in this particular part of the Zitong Block may be lower than originally estimated. Initially, Ivanhoe had hoped the Xu-4 could be effectively stimulated in a vertical wellbore; however, these initial post-frac results suggest horizontal wells with multi-staged fracture stimulations are the preferred exploitation strategy to not only access sufficient natural fractures but also to create additional fractures to achieve the desired, stabilized inflow rate.

Zitong-1 well

The Zitong-1 well was drilled in the Guan Structure to a vertical depth of 4,294 metres (14,084 feet). It originally was designed to test the potential of the deeper Xu-2 through a horizontal wellbore. Sunwing perforated and evaluated the Xu-2 Zone. After a brief flow and build-up test, it was determined that this zone was very tight in this particular location. As a result, Sunwing chose to concentrate on other up-hole zones. Since the well intersected the Xu-5 reservoir section and also the Xu-4 at shallow depths, Sunwing proceeded to test both zones in the vertical wellbore. Early in 2011, Sunwing perforated the Xu-4 formation and allowed the well to flow at a final rate of 680 Mcf/d, with a flowing wellhead pressure of 2,196 psi. The flow and build-up test indicated low permeability away from the wellbore and Sunwing decided to isolate the Xu-4 and move up-hole to test the Xu-5 Zone.

The Xu5 Zone was perforated, acidized and flowed, with a final flow rate of 510 Mcf/d at a flowing tubing pressure of 1,214 psi. A post-perforation/acidization flow and build-up test on the Xu-5 Zone showed an effective permeability estimated at 0.0075 mD, well within the acceptable parameters for successful tight-gas plays in other regions, such as North America and the Middle East. The initial recorded reservoir pressure was 10,636 psi which would be considered to be over-pressured.

In May 2011, Sunwing stimulated the Xu-5 Zone with a 200-tonne fracture treatment using high-strength proppant. The zone has been on flow test since then. The well flowed to a test separator and recovered approximately 62% of the frac fluid before any measurable gas rates were recorded. Initial gas flow rates after fracturing measured up to 287 Mcf/d at pressures of up to 1,682 psi. The well was completed with 114.3-mm (4½-inch) tubing to conduct the high-rate fracture treatment; however, due to the larger tubing, the well encountered liquid unloading problems. Sunwing utilized coil tubing and nitrogen to clean the water from the wellbore to allow continued flow testing of the well. At present, the well may have a "water block" in the reservoir that has been preventing the in-flow of gas into the wellbore. Preparations are underway to inject a sufficient volume of nitrogen into the formation in an attempt to remove or reduce the effect of the apparent water block. Water blocks in low-permeability formations can occur following stimulation. Following the nitrogen injection and following blow down, the well will be flow tested and then shut-in for an extended pressure build up.

Preparations for first well on Mongolia's Nyalga Block

Sunwing has recently instructed its drilling contractor to mobilize the drilling rig and associated equipment to the first selected location in the Nyalga Basin in Mongolia. Mobilization activities will take approximately one month to complete. Sunwing will spud its first Mongolian oil well on a 15 sq km structure identified by 2D seismic in late July. The second drilling location will be centered on an adjacent structure with follow-on locations contingent on progressive drilling success. The current focus of exploration represents just a small portion of the total basin area. Detailed evaluation and testing, as required, will be conducted on our initial wells following drilling.

While existing seismic data has assisted in the selection of the first two locations, Sunwing intends to acquire additional 2D seismic on other portions of the block, and if necessary, acquire 3D seismic to better assess future drilling locations and trapping systems. The drilling rig has been contracted for two initial locations, with an option for three additional wells in 2011, weather permitting. Drilling on these two structures should provide a reasonable assessment on the overall potential of the Block which is over 12,000 sq. km in size with very little seismic detail. Given the main Mongolia to China railway and highway crosses through the eastern side of Block XVI, logistical activities can leverage off this proximity to existing infrastructure.

Tamarack heavy-oil project progressing through Alberta's regulatory approval process

The Tamarack Project is continuing to progress through the Province of Alberta's regulatory approval process. The application was submitted to the government in October 2010 for the development of an integrated in-situ heavy-oil project to be built in two phases, each of 20,000 barrels per day, with an ultimate production capacity of approximately 40,000 barrels per day (bitumen basis).

Regulators completed their initial reviews of the Tamarack submission and, as is customary, provided the company with an initial set of Supplemental Information Requests (SIRs) in May 2011. Ivanhoe Energy is preparing responses that it plans to submit to the regulators in Q3, 2011. The company is continuing to work with numerous local and aboriginal stakeholders and identify economic and employment opportunities for residents of area communities. Progress to date indicates that the Tamarack Project remains on track for approval expected in the second-half of 2012.

Tamarack is a 6,880-acre contiguous block located approximately 10 miles (16 kilometres) northeast of Fort McMurray. Ivanhoe Energy holds a 100% working interest in the project, subject only to a 20% back-in right held by Talisman Energy, which expires in July 2011. Ivanhoe recently completed a $50 million public offering, a portion of which will be used to repay Talisman's convertible promissory note.

Tamarack engineering update

Tamarack project engineering and execution plans continue to progress smoothly in anticipation of regulatory approval. Design of the surface facilities is ongoing with AMEC-BDR, with completion of the Front-End Engineering and Design (FEED) anticipated in the fall of 2011. Detailed engineering will begin in the fourth quarter of 2011 once the FEED has been completed. The project execution plan is being developed and will use best-in-class construction methodologies.

Infrastructure and HTL considerations

The company is pursuing the option of providing for a co-generation facility to supply the project's initial power needs. This power plant will be integrated into the design of the central processing facility to take advantage of process efficiencies - an approach that improves the project economics, removes a large scheduling risk beyond the control of the company and has positive environmental benefits. The project eventually will be tied into the regional power grid, further improving the production facility on-stream factor and project economics by taking advantage of excess power sales.

Alternatives to access markets for the sale of whole or blended bitumen and HTL Synthetic Crude Oil (SCO) produced from Tamarack continue to be assessed. Maintaining the option to sell a variety of products is important for the company to take advantage of changing market conditions over the life of the project.

Ivanhoe Energy also maintains complete optionality on the deployment of HTL technology for Tamarack. The application now being reviewed by regulatory authorities consists of an integrated project. However, key economic and commodity indicators impact the decision to warrant the capital investment, which is continually assessed by the company's management. For Ivanhoe Energy, investment returns are robust under either a stand-alone upstream model or an integrated upstream/HTL model. This flexibility is a competitive advantage for Ivanhoe as HTL addresses downside economic conditions associated with a wider, heavy-to-light price differential. Tamarack's detailed engineering and design incorporates applicable components that would facilitate the commissioning of a HTL facility but in any event would take approximately 36 months from the decision point to proceed with detailed engineering for a HTL facility. The company believes that the longer term North American heavy-oil differential will widen to the point that the economics of upstream-only operations are challenged. HTL provides a unique solution that can be built on much lower capital intensity than other existing methodologies and, due to this modest scale, allows Ivanhoe Energy to act quickly in response to fundamental economic drivers and take advantage of corporate and/or asset opportunities in the future.

To maximize flexibility to reach markets that will provide the highest netbacks, both pipeline and rail options are being investigated. Natural gas and diluent supply points and providers are being considered and these will be connected to Tamarack to provide start-up and ongoing operational flexibility.

Sub-surface engineering and geology update

Since the submission of the application for the Tamarack Project, Ivanhoe's sub-surface engineering and geological team has continued to support the project application and refine the understanding of the resources. Incorporation of information from the past winter's drilling program contributed to the previously announced increases in independently assessed, probable reserves to 176 million barrels and the best-estimate contingent resource to 345 million barrels.

New information has been incorporated into an updated 3-D geologic model to further refine the understanding of reservoir quality and the implications for project performance. This updated model continues to confirm that high-quality pay targets for SAGD development are present in the Tamarack development area. This 3-D geological model will be used in conjunction with reservoir simulation to optimize the reservoir development plan. The company currently expects that 12 well pads and approximately 160 SAGD well pairs will be required to fully develop and produce the targeted resource base.

Additionally, Ivanhoe Energy has identified high-quality expansion opportunities on the Tamarack lease, beyond the Phases 1 and 2 areas identified in the application. These will be delineated in a drilling program expected during the coming winter.

Successful upgrading of Pungarayacu oil creates Ecuador JV interest

Ivanhoe's Pungarayacu Project is located on the eastern foothills of the Andes Mountains. It is easily accessible via a network of existing infrastructure. An oil pipeline with spare capacity runs through the lease block. Block 20 is one of only a few that has been classified as strategically important by the Ecuadorian government for full field development. The presence of hydrocarbons has been known since the 1980s; however, up until now, viable extraction and upgrading solutions that address environmental concerns have been elusive. Ivanhoe Energy's HTL process has the potential to address these sensitivities and, in doing so, provide economic development for the people of Ecuador.

The Pungarayacu field has been independently estimated to contain between 4 to 12 billion barrels of Original Oil in Place (OOIP), which according to the Canadian Oil and Gas Evaluation Handbook are classified as Undiscovered Resources. This potentially significant resource has attracted interest by multi-national corporate entities, as well as national energy companies. Interests of all key stakeholders are being respected as development work proceeds. In early development work, Ivanhoe Energy successfully recovered 9^o API heavy oil during 2010 that was taken to the company's Feedstock Test Facility in San Antonio, Texas, for testing. Ivanhoe Energy successfully upgraded the Pungarayacu heavy crude to 17^o, which meets local pipeline specifications. This represented a significant milestone for the project and created a renewed interest among potential joint-venture partners.

Ivanhoe Energy also plans to assess the southern border of the existing field. A geologic interpretation suggests the heavy-oil field may extend southward to a far greater extent than previously expected. Geologic evidence suggests that a deeper, lighter oil play exists on the block. The objective of Ivanhoe's currently 2-D seismic program is to determine the likelihood of geological trapping systems that would support these views.

Ivanhoe is continuing to make good progress on its previously disclosed 190-kilometre 2-D seismic program and expects the initial phase of shooting and processing will be completed in early July this year. The seismic data will assist in the selection of future appraisal drilling locations. The seismic program fully complies with all Ecuadorian regulatory requirements and has the approval of local stakeholders after extensive consultation.

HTL Business Development

In addition to the known heavy-oil projects in Canada and Ecuador, Ivanhoe Energy also is pursuing a number of prospective HTL projects as business development opportunities. These projects have the potential to provide third-party validations of the HTL process.

For more information about Ivanhoe Energy Inc., please visit our web site at www.ivanhoeenergy.com.

STATEMENTS CONCERNING RESERVES AND RESOURCES. Cautionary Note to U.S. Investors: We use certain terms in this news release, such as contingent resources, which the SEC's guidelines strictly prohibit us from including in filings with the SEC. Investors are urged to also consider closely the disclosure in our Form 10-K for the fiscal year ended December 31, 2010, available from the Company's website. You also can obtain this form from the SEC website at www.sec.gov.

The determination of oil and gas resources involves the preparation of estimates that have an inherent degree of associated risk and uncertainty. The estimation and classification of resources requires the application of professional judgment combined with geological and engineering knowledge to assess whether specific classification criteria have been satisfied. Statements in this news release concerning "resources" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, of the ability to produce in the future the resources described. Actual resources and, if commenced, future production will differ from the estimates provided herein, and the difference may be significant. Reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on the analysis of drilling, geological, geophysical, and engineering data; the use of established technology; and specified economic conditions, which are generally accepted as being reasonable. Reserves are further classified according to the level of certainty associated with the estimates and may be subclassified based on development and production status. [Reserves are further defined below].

					*Proved Reserves* Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.
					*Probable Reserves* Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.
					*Possible Reserves* Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. It is unlikely that the actual remaining quantities recovered will exceed the sum of the estimated proved plus probable plus possible reserves.

Contingent Resources
Certain of the resource volumes referred to in this news release have been classified as "contingent resources" within the meaning of the COGE Handbook. The term "contingent resources" is defined in the COGE Handbook as those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies.

Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters, or a lack of markets. It is appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage.

Contingent resources are further classified in accordance with the level of uncertainty associated with the estimates and may be subclassified based on project maturity and/or characterized by their economic status. Estimates of resources, which always involve uncertainty, are quoted herein as a range according to the level of confidence associated with the estimates. The "best estimate" is considered to be the best estimate of the quantity of bitumen resources that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. The "low estimate" is considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. The "high estimate" is considered to be an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. The contingencies that currently prevent the contingent resources referred to herein from being classified as reserves are a lack of regulatory approval, the absence of a firm development plan, and the uncertainty of funding approval for development. There is no certainty that it will be commercially viable to produce any portion of the contingent resources referred to in this press release.

FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning the anticipated timing and results of planned fracture stimulation and further evaluation and testing of the Yixin-2 and Zitong-1 well, the future tie-in of the Zitong Block wells to the local gas-gathering system, the anticipated receipt of regulatory approvals for the Tamarack Project, the achievement of other project development milestones, and other statements which are not historical facts. When used in this document, the words such as "could", "plan", "estimate", "anticipate", "intend", "may", "potential", "should", and similar expressions relating to matters that are not historical facts are forward-looking statements. Although Ivanhoe Energy and Sunwing Energy believe that their expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the possibility that the company will be unable to raise financing in the future for any of its projects, the possibility that required regulatory approvals will be denied or delayed, the potential that the company's projects will experience technological and mechanical problems, new product development will not proceed as planned, the HTL technology to upgrade bitumen and heavy oil may not be commercially viable, market acceptance of the HTL technology may not be as anticipated, Ivanhoe Energy's lack of history in developing commercial HTL opportunities, geological conditions in reservoirs may not result in commercial levels of oil and gas production, the availability of drilling rigs and other support services, uncertainties about the estimates of the reserves, the risk associated with doing business in foreign countries, environmental risks, changes in product prices, our availability to generate cash flow and raise capital as and when required, competition and other risks disclosed in Ivanhoe Energy's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on EDGAR and the Canadian Securities Commissions on SEDAR.

Ivanhoe Energy to present at the CAPP Oil & Gas Investment Symposium

Mon, 13 Jun 2011 08:15:00 -0400

Jun 13, 2011

CALGARY, June 13, 2011 /CNW/ - Ivanhoe Energy Inc. (TSX: IE) (NASDAQ: IVAN) will present at the Canadian Association of Petroleum Producers (CAPP) Oil & Gas Investment Symposium on Tuesday, June 14, 2011 in Calgary at 2:30 pm MDT. The presentation will be made by David Dyck, President and Chief Operating Officer.

To listen to the live webcast of the presentation visit www.ivanhoeenergy.com

Ivanhoe Energy is an independent international heavy oil development and production company focused on pursuing long-term growth in its reserves and production using advanced technologies, including its proprietary heavy oil upgrading process (HTL^TM). Core operations are in Canada, Ecuador, China and Mongolia, with business development opportunities worldwide. Ivanhoe Energy trades on the Toronto Stock Exchange with the ticker symbol IE and on the NASDAQ Capital Market with the symbol IVAN. For more information about Ivanhoe Energy Inc. please visit our website at www.ivanhoeenergy.com

Ivanhoe Energy announces closing of $50 million public offering of convertible unsecured subordinated debentures

Thu, 09 Jun 2011 08:25:00 -0400

Jun 9, 2011

Insiders, together with other interested parties, support Company with over $23 million in concurrent private placement of debentures

CALGARY, June 9, 2011 /CNW/ - Ivanhoe Energy Inc. (TSX: IE) (NASDAQ: IVAN) today confirmed the closing of its previously announced bought deal public offering of $50,000,000 principal amount of 5.75% convertible unsecured subordinated debentures (the "Debentures") at a price of $1,000 per Debenture (the "Public Offering"). At the holder's option, the Debentures may be converted into common shares of Ivanhoe ("Shares") at any time prior to the close of business on the earlier of June 30, 2016, the maturity date, and the business day immediately preceding the date specified by Ivanhoe for redemption of the Debentures. The conversion price will be $3.36 per Share (the "Conversion Price"), subject to adjustment in certain circumstances, including the declaration of dividends.

The Public Offering was underwritten by a syndicate led by TD Securities Inc. and included Macquarie Capital Markets Canada Ltd., RBC Dominion Securities Inc., UBS Securities Canada Inc., CIBC World Markets Inc. and Byron Capital Markets Ltd.

In connection with the Public Offering, Ivanhoe Energy granted the underwriters an over-allotment option to purchase up to an additional $7,500,000 aggregate principal amount of Debentures at the same price, exercisable in whole or in part at any time for a period of 30 days following June 9, 2011. As of the date hereof, the over-allotment option has not been exercised. If the over-allotment option is fully exercised, the total gross proceeds to Ivanhoe from the sale of the Debentures will be $57,500,000.

Ivanhoe Energy will use the net proceeds of the Public Offering for repayment of the $40,000,000 Convertible Promissory Note (the "Note") due to Talisman Energy Canada on July 11, 2011, operating expenses, capital expenditures on its properties and facilities and corporate and/or asset acquisitions, if any. The Note represents the final portion of consideration due to Talisman Energy for the 2008 acquisition of the Tamarack oil sands lease.

Ivanhoe Energy also announced today that it has sold, on a private placement basis and on the same terms as the Public Offering, over $23,000,000 principal amount of Debentures to certain directors, officers, insiders and other non-insiders (the "Private Placement"), including Ivanhoe's Executive Co-Chairman & CEO, Robert M. Friedland.

The combined net proceeds of the Public Offering and Private Placement, after repayment of the Note, will add approximately $31,000,000 to Ivanhoe's corporate treasury supporting the advance of project initiatives.

All Debentures sold in the Public Offering and Private Placement will mature on June 30, 2016. They will bear interest at an annual rate of 5.75%, payable semi-annually on the last day of June and December of each year, commencing December 31, 2011. The Debentures will not be redeemable before June 30, 2014. On and after June 30, 2014 and prior to the maturity date, the Debentures may be redeemed in whole or in part from time to time at Ivanhoe's option, provided that the volume-weighted average trading price of the Shares on the Toronto Stock Exchange during the 20 consecutive trading days ending on the fifth trading day preceding the date on which the notice of the redemption is given is not less than 125% of the Conversion Price.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registrations requirements of the Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.

Ivanhoe Energy is an independent international heavy oil development and production company focused on pursuing long-term growth in its reserves and production using advanced technologies, including its proprietary heavy oil upgrading process (HTL^TM). Core operations are in Canada, Ecuador, China and Mongolia, with business development opportunities worldwide. Ivanhoe Energy trades on the Toronto Stock Exchange with the ticker symbol IE and on the NASDAQ Capital Market with the symbol IVAN. For more information about Ivanhoe Energy Inc. please visit our website at www.ivanhoeenergy.com

FORWARD-LOOKING STATEMENTS
This document includes forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning the completion, timing and amount and use of proceeds from the offerings. Although Ivanhoe Energy believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include general economic, business and market conditions and other risks disclosed in Ivanhoe Energy's 2010 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on EDGAR and the Canadian Securities Commissions on SEDAR.

Ivanhoe Energy Announces Filing of Canadian Oil and Gas Disclosure Documents and the Final Prospectus for its $50,000,000 Public Offering of Debentures

Thu, 02 Jun 2011 22:28:00 -0400

Jun 2, 2011

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

CALGARY, June 2, 2011 /CNW/ - Ivanhoe Energy Inc. ("Ivanhoe" or the "Company) (TSX: IE; NASDAQ: IVAN) announced today that it has filed Canadian oil and gas disclosure documents on forms 51-101F1, F2 and F3 for the year ended December 31, 2010 as well as the final prospectus in relation to its public offering of $50,000,000 principal amount of 5.75% convertible unsecured subordinated debentures.

The offering is expected to close on or about June 9, 2011 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals.

Ivanhoe Energy is an independent international heavy oil development and production company focused on pursuing long-term growth in its reserves and production using advanced technologies, including its proprietary heavy oil upgrading process (HTL™). Core operations are in Canada, Ecuador, China and Mongolia, with business development opportunities worldwide. Ivanhoe Energy trades on the Toronto Stock Exchange with the symbol IE and on the NASDAQ Capital Market with the ticker symbol IVAN.

For more information about Ivanhoe Energy Inc. please visit our web site at www.ivanhoeenergy.com.

Private Placement Subscribers May Include Institutional Investors and other non-Insiders

Wed, 25 May 2011 08:02:00 -0400

May 25, 2011

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

CALGARY, May 25, 2011 /CNW/ - Ivanhoe Energy Inc. (TSX: IE) (NASDAQ: IVAN) wishes to clarify that, further to the Company's news release dated May 18, 2011 announcing an agreement to sell, on a bought deal basis to a syndicate of underwriters led by TD Securities Inc., $50,000,000 principal amount of 5.75% convertible unsecured subordinated debentures (the "Debentures") and a concurrent private placement of up to an additional $25,000,000 of Debentures on the same terms (the "Private Placement"), the subscribers to the Private Placement will not necessarily be limited to directors, officers and insiders of the Company and may include selected financial institutions and other accredited investors.

Ivanhoe Energy is an independent international heavy oil development and production company focused on pursuing long-term growth in its reserves and production using advanced technologies, including its proprietary heavy oil upgrading process (HTL^TM). Core operations are in Canada, Ecuador, China and Mongolia, with business development opportunities worldwide. Ivanhoe Energy trades on the NASDAQ Capital Market with the ticker symbol IVAN and on the Toronto Stock Exchange with the symbol IE.

For more information about Ivanhoe Energy Inc. please visit our web site at www.ivanhoeenergy.com

Ivanhoe Energy Announces $50,000,000 Public Offering of 5.75% Convertible Unsecured Subordinated Debentures

Wed, 18 May 2011 17:37:00 -0400

May 18, 2011

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

Up to an Additional $25,000,000 of Debentures to be Subscribed by Directors, Officers and Other Insiders

CALGARY, May 18 /CNW/ - Ivanhoe Energy Inc. ("Ivanhoe" or the "Company) (TSX: IE) (NASDAQ: IVAN) announced today that it has entered into an agreement to sell, on a bought deal basis to a syndicate of underwriters led by TD Securities Inc., $50,000,000 principal amount of 5.75% convertible unsecured subordinated debentures (the "Debentures") at a price of $1,000 per Debenture (the "Public Offering"). The Company has also granted the underwriters an over-allotment option to purchase up to an additional $7,500,000 aggregate principal amount of Debentures at the same price exercisable in whole or in part at any time for a period of 30 days following closing.

Ivanhoe also intends to sell, on a private placement basis, up to $25,000,000 principal amount of Debentures to certain directors, officers and insiders including Robert M. Friedland on the same terms as the Public Offering. These Debentures will be subject to a four month hold period.

The Debentures will mature on June 30, 2016 and will bear interest at an annual rate of 5.75% payable semi-annually on the last day of June and December of each year, commencing December 31, 2011. At the holder's option, the Debentures may be converted into common shares of Ivanhoe ("Shares") at any time prior to the close of business on the earlier of June 30, 2016 and the business day immediately preceding the date specified by Ivanhoe for redemption of the Debentures. The conversion price will be $3.36 per Share (the "Conversion Price"), subject to adjustment in certain circumstances, including the declaration of dividends.

The Debentures will not be redeemable before June 30, 2014. On and after June 30, 2014 and prior to the maturity date, the Debentures may be redeemed in whole or in part from time to time at Ivanhoe's option, provided that the volume weighted average trading price of the Shares on the Toronto Stock Exchange during the 20 consecutive trading days ending on the fifth trading day preceding the date on which the notice of the redemption is given is not less than 125% of the Conversion Price.

Ivanhoe will use the net proceeds of the offerings for repayment of the $40 million Convertible Promissory Note due to Talisman Energy Canada on July 11, 2011 and for general corporate purposes.

The offerings are expected to close on or about June 9, 2011 and are subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals.

A preliminary short-form prospectus in respect of the Public Offering will be filed by May 25, 2011 with the securities regulatory authorities in all provinces of Canada except Quebec. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registrations requirements of such Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction.

Ivanhoe Energy is an independent international heavy oil development and production company focused on pursuing long-term growth in its reserves and production using advanced technologies, including its proprietary heavy oil upgrading process (HTL^TM). Core operations are in Canada, Ecuador, China and Mongolia, with business development opportunities worldwide. Ivanhoe Energy trades on the NASDAQ Capital Market with the ticker symbol IVAN and on the Toronto Stock Exchange with the symbol IE.

For more information about Ivanhoe Energy Inc. please visit our web site at www.ivanhoeenergy.com

FORWARD-LOOKING STATEMENTS

This document includes forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning the completion, timing and amount and use of proceeds from the offerings. Although Ivanhoe Energy believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include general economic, business and market conditions and other risks disclosed in Ivanhoe Energy's 2010 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on EDGAR and the Canadian Securities Commissions on SEDAR.

Ivanhoe Energy reports first quarter 2011 financial results and operational highlights

Wed, 11 May 2011 08:09:00 -0400

May 11, 2011

CALGARY, May 11 /CNW/ - Ivanhoe Energy Inc. (TSX: IE) (NASDAQ: IVAN) today reported financial results and operating highlights for the first quarter of 2011 and key highlights and activities to date. Ivanhoe Energy has filed its quarterly financial report on Form 10-Q with the Securities and Exchange Commission and its Interim Financial Statements with the Canadian Securities Administrators for the period ended March 31, 2011. All figures reported are in US dollars unless otherwise noted, and reflect the Company's move to the IFRS accounting standard.

Highlights

Announced a second deep gas discovery on the Zitong Block in the Sichuan basin in China with the successful drilling of Zitong 1.
Confirmed positive test results from Ivanhoe's two most recent wells drilled on the Zitong Block. Both the Yixin 2 and Zitong 1 wells were flow tested during the quarter and prepared for vertical fracture stimulation tests scheduled subsequent to the end of the first quarter.
Increased reserves and resources assigned to the Tamarack Project near Fort McMurray, Alberta by 18%. GLJ Petroleum Consultants of Calgary (GLJ) assigned estimated probable plus possible bitumen (3P) reserves of 220 million barrels and probable bitumen (2P) reserves of 176 million barrels to Tamarack. Along with the reserves additions, the independent 2010 evaluation recognized 345 million barrels of best estimate contingent resource.
Extended patent protection on the HTL heavy oil upgrading technology to 2028 with the receipt by Ensyn Corporation, Ivanhoe's technology partner, of additional patents which broadened the underlying core technology known as Rapid Thermal Processing (RTP^TM).
Received CAD$27 million in additional capital resulting from the exercise of warrants priced at CAD$3.16 attached to the February 2010 Special Warrant financing. These proceeds, together with existing cash on hand, will be used to fund project activities during 2011.
Revenues were $8.2 million in the first quarter of 2011 compared to $5.3 million in the first quarter of 2010. Revenues increased due to a combination of higher production volumes and stronger realized prices.
In the first quarter of 2011, $6.5 million in cash flow was consumed in operations, compared to $5.4 million of cash flow consumed in operations during the first quarter of 2010.
The net loss for the first quarter of 2011 was $11.1 million compared to a net loss of $6.8 million for the first quarter of 2010 due to higher operating, general and administrative expenses. The higher 2011 general and administrative expense was driven primarily by bonus payments for 2010 performance that were not accrued for in 2010, a quarterly accrual for 2011 bonus payments to potentially be paid in 2012 and an increase in salaries to support drilling operations.
Cash and cash equivalents were $80.8 million at March 31, 2011 compared to $68.3 million at December 31, 2010. The Company's cash position at March 31, 2011 was supplemented by the exercise of CAD$27 million in warrants issued pursuant to the Special Warrant financing completed in the first quarter of 2010.

Tamarack Project - Canada

Ivanhoe Energy continued to advance through the early stages of the regulatory approval process with various governmental bodies in the first quarter. Through its independent reserve evaluator, Ivanhoe recognized 220 million barrels of probable plus possible (3P) reserves and 345 million barrels of best contingent resources on the Tamarack Lease. Since the initial acquisition of the lease from Talisman in 2008, Ivanhoe has advanced the delineation and characterization of the resource. The combined reserves and resources represent over a two-fold increase from the initial resource estimates at the time of the acquisition.

The regulatory submission premise combines both a steam assisted gravity drainage (SAGD) thermal recovery upstream business and a downstream operation consisting of right-sized HTL facilities. While current heavy to light price differentials do not justify the deployment of incremental capital to build HTL facilities, Ivanhoe will be able to react quickly should leading indicators suggest that the longer term heavy oil price differential will widen from current levels. Ivanhoe will maintain the option to build an HTL facility in the future and in this sense HTL provides a downside hedge against deteriorating economics that heavy oil producers are typically exposed to. Heavy to light oil price differentials greater than 20% would be required to achieve Company specific economic hurdle rates of return on capital deployed for a HTL facility.

Pungarayacu Project - Ecuador

During the quarter, Ivanhoe finalized the terms of a 2D seismic program with a third party. Early work, such as obtaining right of way permits, commenced at the end of the quarter. The majority of the seismic program will ensue over the second quarter of 2011 with final results and processing during the third quarter. The objective of this seismic program is to better identify sub-surface structures, assist in the selection of future drilling locations and possibly determine deeper geologic trapping systems which may contain lighter quality crude products.

Carlos Espinoza, Ivanhoe's General Manager for the Ecuador Project, was recently elected as the Principal Director of the Ecuadorian-Canadian Chamber of Commerce. Mr. Espinoza is a key senior official for Ivanhoe's Ecuadorian Project and with this appointment, it is envisioned that both business and political ties between Ivanhoe Ecuador and the national government of Ecuador will be further solidified as both parties continue to support the development of a key strategic resource.

Subsequent to the end of the quarter, Ivanhoe announced positive results regarding testing of heavy crude volumes recovered from the IP-5B well in the Pungarayacu field through the Feedstock Test Facility ("FTF") in San Antonio, Texas. Heavy crude from the IP-5B well has technical characteristics which on some accounts are quite different from that observed for heavy crude from the Athabasca region of northern Alberta. The FTF successfully produced a 17^o API synthetic crude oil, meeting local pipeline specifications. While in and of itself an important achievement, Ivanhoe anticipates that further improvements will be attained as the Project advances, principally in the level of upgrading or synthetic crude oil API. This improvement over initial results would be consistent with the experience upgrading Athabasca heavy crude oil. These recent successful tests demonstrate the flexibility and robustness of the HTL upgrading process to convert diverse heavy crude feedstocks into more valuable and marketable, pipeline-ready synthetic crude oil. In addition, these tests help position Ivanhoe Energy for full-scale heavy oil operations in Ecuador and in other countries having similar heavy oil characteristics.

HTL business development

The HTL process continues to be refined and enhanced by Ivanhoe. A significant achievement during the quarter was the extension of patent protection to 2028. This was indirectly achieved via the issuance of a new patent in the United States to Ensyn Corporation ("Ensyn") for its RTP^TM (Rapid Thermal Processing) system. Ensyn is Ivanhoe's technology partner and shares certain common directors on the respective boards. Efforts made by Ensyn directly benefit Ivanhoe in that Ivanhoe's HTL process uses the same core technology which has been commercialized seven times around the world over the last 20 years.

As previously stated in the Ecuador update, the FTF successfully processed heavy crude oil recovered from the Pungarayacu field. Ivanhoe's business development efforts will continue to assess opportunities around the world where HTL provides a competitive advantage. This competitive advantage may manifest itself in the form of reduced scale compared to traditional upgrading alternatives, heavy to light oil price differential capture, natural gas avoidance, diluent avoidance, geographic restrictions, environmental sensitivities, maintenance of posted benchmark prices, etc. These are the many challenges facing heavy oil resource owners around the world today. One of key advantages of HTL is its flexibility to be customized as required in a particular market thereby capitalizing on the economics associated with one or more of these advantages.

Sunwing Energy

Sunwing has a 15-year history of oil and gas exploration and production in China. Sunwing produces approximately 1,500 barrels (gross) of light oil per day in Dagang, in China's Hebei province, in a production sharing agreement with PetroChina in which Sunwing is the operator. Sunwing is also the operator in a gas exploration block in Zitong, in Sichuan province, with its 10 percent partner, Mitsubishi Gas Chemical Company. In November 2009, through a merger between a subsidiary of Ivanhoe Energy and PanAsian Petroleum Inc., the Company acquired a Production Sharing Contract for the Nyalga Block XVI in Mongolia. The block covers an area of approximately 12,608 square kilometres and provides the Company with the exclusive rights to explore, develop and produce oil or gas within the block.

Dagang - China At the Dagang field, production was 90,599 net barrels of oil after royalties in the first quarter of 2011 compared to 72,396 net barrels of oil after royalties during the first quarter of 2010. The exit rate at March 31, 2011 was 1,500 barrels per day from 44 producing wells compared to 1,270 barrels per day from 35 wells at March 31, 2010.

Zitong - China Early in the quarter, Ivanhoe announced a second gas discovery on the Zitong Block with the successful drilling to target depth and associated flow rate testing of the Zitong 1 well. Following the two gas discoveries on the Zitong Block, Sunwing continued to advance testing efforts on both the Yixin 2 and Zitong 1 wells to better assess the operational characteristics of the wells. Fracture stimulations programs are required in both cases due to the deposition of the sub-surface geology. Complete fracture stimulation program results will be reported in the near term. Sunwing has also commenced the preparation of a Provisional Overall Development Program ("PODP") which has been requested by PetroChina to assess onward testing and longer term potential development plans, and will be submitted by end of June this year. On completion of this additional testing and appraisal work, an Overall Development Program (ODP) will be prepared and submitted as required under the Production Sharing Contract. Upon review and approval of this ODP by the Central Government, PetroChina has the option to participate to a maximum 51% Working Interest in the go-forward capital requirements on the Block.

Block XVI - Mongolia Sunwing has contracted an appropriate drilling rig for an initial two well program with an option for an additional three wells. Targeted locations have been selected based on interpretation of over 900 kilometres of 2D seismic. Drilling results will be reported upon completion of drilling and evaluation of the wells over the course of 2011.

Ivanhoe Energy - Consolidated Financial Highlights
(unaudited; thousands of U.S. dollars except per share amounts)


	Three Months Ended
	Mar. 31	Mar. 31
	2011	2010
Financial
Net loss	$ (11,126)	$ (6,805)

Net loss per share, basic and diluted	$ (0.03)	$ (0.02)

Net cash used by operating activities	$ (6,508)	$ (5,431)

Highlights
Oil revenue - gross	$ 8,119	$ 5,330
Total revenue	$ 8,186	$ 5,349
Depletion and depreciation	$ 1,831	$ 1,537
Capital investments	$ 14,311	$ 23,900
Total assets (at end of period)	$ 419,065	$ 418,110
Cash and cash equivalents
(at end of period)	$ 80,798	$ 139,235

Summary of First Quarter

Oil production increased in the first quarter of 2011 compared to the first quarter of 2010 as Ivanhoe received additional volumes to offset capital expenditures incurred at Dagang. Additional production in combination with stronger realized prices, resulted in higher oil revenue for the Company in the current quarter. The net loss in the current quarter was $11.1 million, compared to a loss of $6.8 million in the first quarter of 2010, due to higher operating and general administrative expenses, which were partially offset by noncash foreign currency exchange and derivative instrument gains.

Capital expenditures totalled $14.3 million in the three months ended March 31, 2011 and primarily related to activities in China. At the Company's Zitong Block in China's Sichuan Province, testing operations were performed on the Xu-4 and Xu-5 formations of the Zitong-1 gas well. The Yixin-2 gas well was tested in the Xu-4 formation and the well was prepared for fracture stimulation. At Dagang, one well was drilled and completed and a well spudded in 2010 was completed. Fracture stimulation programs at Dagang also continued during the quarter.

Liquidity and Capital Resources

Ivanhoe Energy's cash and cash equivalents were $80.8 million at March 31, 2011 compared to $68.3 million at December 31, 2010, a net increase of $12.5 million. This increase was primarily due to the exercise of common share purchase warrants, offset by cash used for capital expenditures and operations.

This news release summarizes our 2011 first quarter results of operations and financial condition and should be read in conjunction with our Quarterly Report on Form 10-Q for the period ended March 31, 2011, which contains financial statements and Management's Discussion and Analysis of Financial Condition and Results of Operations. The Form 10-Q was filed on May 10, 2011. Copies may be obtained from the Ivanhoe Energy website at www.ivanhoeenergy.com, on EDGAR at www.sec.gov or SEDAR at www.sedar.com.

Ivanhoe Energy is an independent international heavy oil development and production company focused on pursuing long-term growth in its reserves and production using advanced technologies, including its proprietary heavy oil upgrading process (HTL^TM). Core operations are in Canada, Ecuador, China and Mongolia, with business development opportunities worldwide. Ivanhoe Energy trades on the NASDAQ Capital Market with the ticker symbol IVAN and on the Toronto Stock Exchange with the symbol IE.

For more information about Ivanhoe Energy Inc. please visit our web site at www.ivanhoeenergy.com.

FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning the potential benefits of Ivanhoe Energy's heavy oil upgrading technology, the potential for commercialization and future application of the heavy oil upgrading technology and other technologies, statements relating to the continued advancement of Ivanhoe Energy's projects, the potential for successful exploration and development drilling, dependence on new product development and associated costs, statements relating to anticipated capital expenditures, the necessity to seek additional funding, statements relating to increases in production and other statements which are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions relating to matters that are not historical facts are forward-looking statements. Although Ivanhoe Energy believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that the Company's projects will experience technological and mechanical problems, new product development will not proceed as planned, the HTL technology to upgrade bitumen and heavy oil may not be commercially viable, geological conditions in reservoirs may not result in commercial levels of oil and gas production, the availability of drilling rigs and other support services, uncertainties about the estimates of reserves, the risk associated with doing business in foreign countries, environmental risks, changes in product prices, our ability to raise capital as and when required, competition and other risks disclosed in Ivanhoe Energy's 2010 Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on EDGAR and the Canadian Securities Commissions on SEDAR.

Ivanhoe Energy successfully upgrades heavy oil from its Pungarayacu field in Ecuador to pipeline quality

Thu, 05 May 2011 08:00:00 -0400

May 5, 2011

Tests demonstrate wide operating range of Ivanhoe Energy's HTL^TM (Heavy-to-Light) technology

CALGARY, May 5 /CNW/ - David Dyck, President and Chief Operating Officer of Ivanhoe Energy Inc. (TSX: IE) (NASDAQ: IVAN) and Dr. Michael Silverman, Executive Vice President and Chief Technology Officer today announced that heavy crude oil extracted from Ivanhoe's IP-5B well in the Pungarayacu field in Block 20 in Ecuador has been successfully upgraded to local pipeline specifications using Ivanhoe Energy's proprietary HTL upgrading process. The successful tests demonstrate the flexibility and robustness of the HTL upgrading process to convert diverse heavy crude feedstocks into more valuable and marketable, pipeline-ready synthetic crude oil. In addition, these tests help position Ivanhoe Energy for full-scale heavy oil operations in Ecuador and in other countries having similar heavy oil characteristics.

Ivanhoe Energy drilled its first two appraisal wells in the Pungarayacu field in 2010. This followed a 26-well appraisal drilling program in the 1980's carried out by Petroecuador, which provided valuable preliminary data on the field but did not include thermal recovery and hence did not produce any oil for characterization and testing.

Ivanhoe Energy's goals for the initial wells in Pungarayacu were to add to its preliminary understanding of the reservoir, to carry out thermal recovery tests, and to extract heavy oil for characterization and upgrading tests using its proprietary HTL upgrading process.

Ivanhoe Energy drilled its second well, IP-5B, at the southern end of the Pungarayacu oil field in Block 20. Following thermal operations, heavy crude was extracted and test volumes were sent to Ivanhoe Energy's HTL Feedstock Test Facility (FTF) in San Antonio, Texas. These heavy crude volumes were successfully processed and converted to a product that would meet pipeline specifications in Ecuador and would have a higher value and greater marketability than the raw heavy crude.

"This successful processing test confirms the capabilities and flexibility of our HTL upgrading technology", said David Dyck. "We believe our HTL process provides Ivanhoe Energy with a unique capability to help the Government of Ecuador, and other governments and heavy oil owners around the world, develop this important resource in a cost-effective and environmentally-responsible manner".

Ivanhoe Energy's technical team is pleased with this result given the specific characteristics of the crude samples that were obtained from IP-5B. The crude gravity is similar to Athabasca bitumen, at approximately 8 °API, however other characteristics are quite different and present specific upgrading challenges. This included higher residual oil (heaviest fraction of the crude), metals, viscosity, solids, and water. In order to deal with these challenges, the FTF was calibrated and customized to suit the feed, and the processing was successful. The input heavy crude, with a gravity of approximately 8°API, was upgraded to approximately 17°API, while the viscosity of the feed was virtually eliminated and the metals significantly reduced. All of this was accomplished with an overall liquid yield of 88%. These results were from Ivanhoe's first well of recovered volumes and as such represents an early test result. Ivanhoe anticipates that improvements in technical attributes, including API, will continue to advance as progress is made on the overall Ecuador project. This would be consistent with improvements achieved in the Tamarack Project also operated by Ivanhoe.

"In recent years, we have dramatically improved the overall performance and capabilities of the HTL process from its early stage design," said Dr. Silverman. "Over the last twelve months we have focused deliberately on making the process as flexible as possible so we can handle different and more challenging crudes. This preparation served us well when processing the heavy crude from well IP-5B."

An independent review by Gaffney, Cline & Associates estimated that within the 250 square-mile delineated portion of Block 20, and within the Hollin formation, there are between 4 and 12 billion barrels of oil originally-in-place. Canadian reporting standards and, in particular, the Canadian Oil and Gas Evaluation Handbook, stipulate that, until it can be established that oil will flow to the surface, original-oil-in-place must be reported as "undiscovered resources".

Ivanhoe has also commenced a 190 kilometre 2-D seismic program on the southern part of the Pungarayacu Block. Ivanhoe anticipates that this initial phase of shooting and processing of 2-D seismic will be completed in early July. The seismic data will be used to better identify sub-surface structures, assist in the selection of future drilling locations and possibly determine deeper geologic trapping systems which may contain lighter quality crude products.

HTL represents a unique competitive advantage as Ivanhoe executes its heavy oil business plan around the world. HTL has demonstrated the ability to upgrade a wide range of heavy oil feedstocks with significant variability in characteristics into a more valuable and marketable synthetic crude oil meeting pipeline specifications. HTL eliminates the need for diluent and blend agents for transport, and eliminates, or virtually eliminates, the need for natural gas for steam generation for thermal recovery. These HTL advantages all come to bear in Pungarayacu in Block 20, as well as in many other heavy oil fields in Ecuador, where access to natural gas and blend agents is restricted, and heavy oil is abundant.

Ivanhoe Energy Inc. is an independent, international oil and gas company with a focus on heavy oil development and production using advanced technologies, including its proprietary, patented heavy to light upgrading process (HTL™). Core operations are in Canada, Ecuador, China and Mongolia, with business development opportunities worldwide. Ivanhoe's shares trade on the NASDAQ Capital Market with the ticker symbol IVAN and on the Toronto Stock Exchange under the symbol IE.

For more information about Ivanhoe Energy Inc. please visit our web site at www.ivanhoeenergy.com.

Cautionary Statement Regarding Undiscovered Resources: There is no certainty that the Block 20 oil-in-place identified to date can be made to flow to the surface such that these undiscovered resources can be upgraded to a higher resource category nor that it will be commercially viable to produce the resources.

FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning the estimated quantities of gas in each target in the Guan structure, the anticipated amount of time required for, and the estimated cost of, drilling, testing and casing the Yixin-2 and Zitong-1 wells, and other statements which are not historical facts. When used in this document, the words such as "could", "plan", "estimate", "anticipate", "intend", "may", "potential", "should", and similar expressions relating to matters that are not historical facts are forward-looking statements. Although Ivanhoe Energy and Sunwing Energy believe that their expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the possibility that the company will be unable to raise financing, the potential that the company's projects will experience technological and mechanical problems, geological conditions in reservoirs may not result in commercial levels of oil and gas production, the availability of drilling rigs and other support services, uncertainties about the estimates of the reserves, the risk associates with doing business in foreign countries, environmental risks, changes in product prices, our availability to generate cash flow and raise capital as and when required, competition and other risks disclosed in Ivanhoe Energy's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on EDGAR and the Canadian Securities Commissions on SEDAR.

Xu-5 zone at Zitong-1 flows gas at significant pressure

Mon, 04 Apr 2011 16:06:00 -0400

Apr 4, 2011

Ivanhoe to commence fracture stimulation at Yixin-2 and Zitong-1

CHENGDU, SICHUAN, April 5 /CNW/ - David Dyck, President and Chief Operating Officer of Ivanhoe Energy Inc. (TSX: IE) (NASDAQ: IVAN), and Gerald Moench, President of Sunwing Energy Ltd., announced today that positive gas flows have been recorded during testing operations on the Xu-5 formation of the Zitong-1 natural gas discovery well in China's Sichuan Province.

Recent testing in the Xu-5 formation exposed up to 54 metres of pay, in five sets of perforations. A pressure build-up was recorded while the well was shut-in for a 24-hour period. The down-hole recorders and perforating system were recovered, following which the well was configured for a small acid stimulation to clean-up the perforation and near-by reservoir. The test results indicated Xu-5 reservoir pressure of 10,500 psi which is considered to be very over pressured and an encouraging indicator of reservoir quality and performance.

Subsequent testing recorded flow rates of 750,000 to 2,000,000 cubic feet a day through a three to four-millimetre choke at pressures up to 3,000 psi. During testing operations, hydrate issues were observed down hole and at the surface, which could account for some of the variation in flow rates. Bottom-hole recorders are being recovered and will be analyzed to assist in reservoir modelling and planning for a vertical well fracture stimulation program.

Follow-up wire-line production-logging surveys have indicated that most of the gas flow came from the upper 18 metres of perforations. Preparations are underway for a second acid stimulation over the four sets of perforations in the lower 36 metres, which will be isolated from the top 18 metres that have undergone initial testing. The lower sets of perforations will be flow tested before the well is set up for a vertical fracture stimulation of the Xu-5's entire 54-metre perforated interval. Test results after the fracture stimulation will be analyzed to assist in planning a future horizontal well which will target the Xu-5 formation.

The testing programs on this well encountered unexpected third-party delays while waiting for the necessary equipment to complete the work; demand for well service equipment in the Sichuan Basin is steadily increasing along with the demand for natural gas.

It has been recently reported that major multi-national energy companies have high expectations for unconventional gas in China, including tight-gas and shale-gas, and they are ramping up their investment and activity in the region. This activity has put some pressure on the timely availability of equipment in the area. Potentially adding to this demand for equipment, China is reportedly in the process of drafting policies and incentives to encourage development of unconventional gas plays in support of its stated goal to increase the use of cleaner-burning fuels.

In January 2011, Ivanhoe Energy reported that Zitong-1's deeper Xu-4 formation had flowed gas at a restricted rate of approximately 750,000 cubic feet per day, through a three-millimetre choke, during limited testing. The Xu-4 zone was then isolated to allow perforating and testing the shallower Xu-5 formation. Additional Xu-4 evaluation in the Zitong-1 well will be scheduled after completing all testing and evaluation of the Xu-4 fracture stimulation at the Yixin-2 well.

"We continue to make excellent progress at our two new natural gas discoveries and look forward to the results of our upcoming fracture stimulation programs," said Mr. Dyck.

"The Zitong Block consists of deep, high-pressure reservoirs that are classified as "tight gas". The permeability and porosity of the sandstones encountered in the Zitong-1 and Yixin-2 gas discoveries fall within the parameters of current, highly productive, commercial tight-gas projects in North America. The key difference and positive indicator is that we are obtaining significant flow rates from these wells prior to fracture stimulation. The planned stimulation programs have the potential to significantly increase these early flow rates, providing critical information to better understand reservoir performance, including the scale of the reserves," added Mr. Dyck.

With successful pre-stimulation gas flows from tests on the Xu-4 and the Xu-5 formations, the company estimates that the four main structures on the Zitong block contain between 0.3 (P90) and 1.7 (P10) trillion cubic feet of total gas initially-in-place, with a best estimate (P50) of 0.75 trillion cubic feet. This resource estimate does not include potential from the Xu-2 formation or any of the additional, smaller structures on the block - or the potential for a regional tight-gas play, which the company believes is achievable, given the number of off-structure wells that have achieved gas flows. The company is currently conducting further evaluation to permit classification of these resources into more specific categories pursuant to National Instrument 51-101, to estimate the recoverable portion of these in-place volumes and to determine their commerciality. In the meantime, there is no certainty that it will be commercially viable to produce any portion of these resources.

Yixin-2 gas well discovery ready for fracture stimulation

The Yixin-2 well has been prepared for fracture stimulation, which is scheduled for late April and is contingent upon securing the necessary service equipment. Following fracture stimulation, production testing at the Yixin-2 well will determine optimal rates for long-term production.

"With a successful fracture stimulation program, and following initial testing, the wells will be available to be tied-in to the local gas-gathering system, which will allow for longer-term performance monitoring and sales," said Mr. Moench. "Tie-in facilities are within approximately two kilometres of both wells and can be accomplished within a short time frame and for minimal capital cost, and we expect these activities to culminate in reported production and associated cash flow in 2011."

Provisional overall development plan underway for Zitong Block

Sunwing Energy is preparing a provisional, overall development plan for the Zitong Block and expects to submit this plan to PetroChina by the end of June 2011. The plan will provide PetroChina with a conceptual overview of the development activity that Sunwing Energy proposes to undertake to develop the natural gas opportunities across the Zitong Block.

Sunwing is the operator of the 659,840-acre (1,031-square-mile) Zitong exploration block in Sichuan and holds a 90% interest in a Petroleum Contract with PetroChina Company Limited. Mitsubishi Gas Chemical Company, of Japan, holds the remaining 10% interest.

Ivanhoe Energy Inc. is an independent, international heavy-oil development and production company focused on pursuing long-term growth in its reserves and production using advanced technologies, including its proprietary, patented heavy-to-light upgrading process (HTL™). Core operations are in Canada, Ecuador, China and Mongolia, with business development opportunities worldwide. Ivanhoe's shares trade on the NASDAQ Capital Market with the ticker symbol IVAN and on the Toronto Stock Exchange under the symbol IE.

For more information about Ivanhoe Energy Inc., please visit our web site at www.ivanhoeenergy.com.

FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning the anticipated timing and results of planned fracture stimulation and further evaluation and testing of the Yixin-2 and Zitong-1 well, the future tie-in of the Zitong Block wells to the local gas-gathering system and other statements which are not historical facts. When used in this document, the words such as "could", "plan", "estimate", "anticipate", "intend", "may", "potential", "should" "expect", and similar expressions relating to matters that are not historical facts are forward-looking statements. Although Ivanhoe Energy and Sunwing Energy believe that their expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the possibility that the company will be unable to raise financing, the potential that the company's projects will experience technological and mechanical problems, geological conditions in reservoirs may not result in commercial levels of gas production, the availability of drilling rigs and other support services, , the risk associates with doing business in foreign countries, environmental risks, changes in product prices, our availability to generate cash flow and raise capital as and when required, competition and other risks disclosed in Ivanhoe Energy's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on EDGAR and the Canadian Securities Commissions on SEDAR.

Heavy-to-Light (HTL (TM)) patent protection solidified to 2028

Mon, 28 Mar 2011 08:00:00 -0400

Mar 28, 2011

Broad fundamental process patent issued in the USA for Heavy-to-Light Technology

CALGARY, March 28 /CNW/ - Robert Friedland, Executive Co-Chairman and Chief Executive Officer and David Dyck, President and Chief Operating Officer of Ivanhoe Energy Inc. (TSX: IE) (NASDAQ: IVAN), today announced that a new patent has been successfully issued that broadens and extends Ivanhoe Energy's intellectual property related to its HTL^TM ("Heavy-to-Light") heavy oil upgrading technology.

The new patent was issued in the United States in the name of Ivanhoe Energy's technology partner, Ensyn Corporation, and relates to Ensyn's RTP™ ("Rapid Thermal Processing"), the core technology underlying the HTL process. The United States is an anchor jurisdiction in Ensyn and Ivanhoe Energy's patent strategy, and successful issuance in the United States is a powerful precedent for successful issuance in additional key jurisdictions. Ivanhoe Energy acquired the rights to the RTP process in 2005 and rebranded the petroleum application as "HTL", or "Heavy-to-Light". The new patent covers Ivanhoe Energy's HTL process as well as Ensyn's RTP applications related to renewable fuels and chemicals. The new patent expires in 2028.

Heavy oil production and processing is a cornerstone and primary focus of Ivanhoe Energy and HTL heavy oil upgrading is a key competitive advantage of Ivanhoe Energy's heavy oil business plan worldwide. Currently, Ivanhoe Energy's heavy oil asset portfolio includes the 40,000 barrels per day Tamarack Project in Western Canada and the Pungarayacu Project in Ecuador which contains externally verified Original Oil in Place (classified as "undiscovered resources" under the COGE Handbook) of between 4 billion and 12 billion barrels. Ivanhoe Energy's business plan also includes expansion opportunities related to integrated HTL upstream heavy oil in Canada and internationally, as well as HTL midstream opportunities worldwide. This new patent fortifies and extends the life of Ivanhoe Energy's HTL technology advantage in the heavy oil industry.

"This new patent is a welcome addition to the existing patent portfolio protecting our HTL intellectual property", said Dr. Mike Silverman, Executive Vice President and Chief Technology Officer of Ivanhoe Energy. "These include patents issued in the name of Ensyn, like this new patent, as well as patents related specifically to HTL heavy oil upgrading and which have been issued directly in the name of Ivanhoe Energy".

Dr. Robert Graham, Ensyn Corporation's Chief Executive Officer said "This is a broad, important patent for both Ivanhoe Energy and for Ensyn. We look forward to working with Mike Silverman and his technology group in the continued addition of patent protection as we advance the application of this technology in our respective industries".

Ivanhoe Energy Inc. is an independent, international heavy oil development and production company focused on pursuing long-term growth in its reserves and production using advanced technologies, including its proprietary, patented heavy to light upgrading process (HTL™). Core operations are in Canada, Ecuador, China and Mongolia, with business development opportunities worldwide. Ivanhoe's shares trade on the NASDAQ Capital Market with the ticker symbol IVAN and on the Toronto Stock Exchange under the symbol IE.

For more information about Ivanhoe Energy Inc. please visit our web site at www.ivanhoeenergy.com.

Ivanhoe Energy reports 2010 financial results and operational highlights

Thu, 17 Mar 2011 08:00:00 -0400

Mar 17, 2011

CALGARY, March 17 /CNW/ - Ivanhoe Energy Inc. (NASDAQ: IVAN; TSX: IE) today announced summary financial results and operating highlights for the year ended December 31, 2010. All figures reported are in US dollars unless otherwise noted. Ivanhoe Energy has filed its annual report on Form 10-K for the year ended December 31, 2010.

Highlights

Ivanhoe Energy marked a major advance towards commercial production at its Tamarack Project with the submission of its regulatory application to the Government of Alberta in November 2010.
Subsequent to year end, Ivanhoe Energy announced that probable plus possible reserves were recognized for the Tamarack Project. GLJ Petroleum Consultants of Calgary assigned estimated (2P) bitumen reserves of 176 million barrels and probable plus possible (3P) bitumen reserves of 220 million barrels and probable to Tamarack. Along with the reserves additions, the independent 2010 evaluation recognized 345 million barrels of best estimate contingent resource.
Sunwing Energy, Ivanhoe Energy's wholly-owned subsidiary, made two significant natural gas discoveries at its Zitong Block in China and, as a result of this success, obtained access to all the other known structures on the Block.
Ivanhoe Energy drilled two appraisal wells on Block 20 in Ecuador and successfully produced oil at its second well, IP-5b, following steam injection operations. These were the first barrels of oil ever to be produced from the Pungarayacu oil field.
Revenues from continuing operations were $21.9 million in 2010, down from $23.7 million in 2009 primarily due to lower net production volumes in the Dagang field. Sunwing Energy's working interest at Dagang decreased from 82 percent to 49 percent in September 2009 upon the Company recovering its development costs. The net loss from continuing operations was $29.1 million in 2010, down from the net loss of $37.7 million recorded in 2009.
In 2010, $17.8 million in cash flow was consumed in operations compared to $15.0 million in 2009, primarily due to lower revenue combined with higher general and administrative expenses.
Cash and cash equivalents were $67.8 million at December 31, 2010 compared to $21.5 million at December 31, 2009. The Company's cash position in 2010 was augmented by the proceeds from the Cdn$150 million Special Warrant financing completed in the first quarter of the year.
Subsequent to year-end, Ivanhoe Energy received proceeds of Cdn$27.2 million from the exercise of 8.6 million Common Share Purchase Warrants which expired on February 25, 2011. With the exercise of these warrants and other options, Ivanhoe Energy has 343.9 million common shares outstanding.

"During 2010, Ivanhoe Energy made tremendous progress on several fronts across each of our core assets, setting the stage for our team to continue executing within each of our geographical regions," said David Dyck, President and Chief Operating Officer. "In 2011, we will build on the successes and achievements of the past year, and our efforts to accelerate various discussions and due diligence activities to establish strategic partnerships and financing arrangements continues to be a key focus of our management team."

Tamarack Project - Canada

Ivanhoe Energy completed its winter delineation drilling program at Tamarack in early 2010 and, in November 2010, the Company marked a major milestone towards commercial production with the submission of its regulatory application to the Government of Alberta for the Tamarack Project. Ivanhoe Energy holds a 100 percent working interest in this Project which is expected to produce approximately 40,000 barrels per day for at least 30 years.

Subsequent to year end, Ivanhoe Energy announced that an independent reserve evaluator had recognized probable (2P) and probable plus possible (3P) reserves for the Tamarack Project. The reclassification of a portion of the contingent resources to 2P and 3P reserves is a result of the successful completion of the Company's 2010 drilling program on the Tamarack lands, further technical evaluation, and the submission of its regulatory application. GLJ Petroleum Consultants of Calgary (GLJ) assigned estimated 2P bitumen reserves of 176 million barrels and 3P bitumen reserves of 220 million barrels to Tamarack. Along with the reserves classifications, the independent 2010 evaluation recognized 345 million barrels of best estimate contingent resource. On a combined basis, the 2P reserves plus best estimate contingent resource rose 18 percent compared with GLJ's previous report for 2009.

In addition to the submission of the regulatory application for the Tamarack Project, Basic Engineering and Design was completed to support the generation of a Class III (+20/-15%) capital cost estimate. For Phase 1 (20,000 barrels per day) of a fully integrated project, the Class III estimate is $1,370 million compared to the Class IV (+25%/-20%) estimate of $1,166 million. Certain contingencies and scope changes, including capital for infrastructure, cogeneration facilities and pipelines, were included in this estimate. It is anticipated that these scope changes will contribute to lower operating expenses over the life of the project and enhance overall project economics.

Ivanhoe Energy retains flexibility regarding the timing for deployment of HTL upgrading capacity in order to maximize economic returns. Based on current market conditions in Western Canada, including narrow heavy-light price differentials and low natural gas prices, a stand-alone upstream project provides a superior economic return than does a project integrating upstream operations with an upgrading facility. Ivanhoe Energy will continue to monitor market conditions to capitalize on changing markets by adjusting project scope and timing in order to maximize project returns over the life of the project.

Based on the Class III estimate, a stand-alone upstream project would cost approximately $820 million or $40,000 per flowing barrel for Phase 1 (20,000 barrels per day) which is in line with similar in-situ oil sands projects in the Athabasca region given the current pricing environment. Based on a detailed review of the project timetable, Ivanhoe Energy believes the timeframe to receive regulatory approval for the Tamarack Project could take up to 24 months from application submittal. Subject to regulatory approval, Ivanhoe Energy has reviewed its construction and commissioning schedule for the Project and first bitumen production is anticipated in 2014. Given the significant long-term value of this asset, this development schedule is not expected to impact project economics in any significant manner.

Zitong - China

In 2010, Sunwing Energy successfully drilled two wells, Yixin-2 and Zitong-1, to total depth. These wells are located on Sunwing's 659,840-acre (1,031-square-mile) Zitong Block in Sichuan Province, the oldest and one of the most productive gas producing regions in China.

In December 2010, Sunwing Energy announced a significant natural gas discovery at Yixin-2 where gas flowed from the Xu-4 Formation at initial rates of up to 13 million cubic feet per day. Subsequently, after a short shut-in period, the Yixin-2 well was flow tested for a 48-hour period at rates of 1.5 million cubic feet per day declining to 0.667 million cubic feet per day with a tubing pressure of 2,380 psi. The flow rates of the Xu-4 Formation at the Yixin-2 well were higher than what was expected from these tight, fractured sandstones that rely on stimulation to generate commercial flow rates.

Design work is being completed and equipment has been scheduled to carry out a vertical fracture stimulation of the Xu-4 Formation in the Yixin-2 well. It is expected that stimulation equipment will be available and on location at the end of March, at which time the well will be fracture stimulated.

Subsequent to year end, the Company announced its second natural gas discovery in the Xu-4 Formation at the Zitong-1 well, located on the 70-square-kilometre Guan structure. The well was tested with a small three millimetre choke and flowed at a restricted rate of approximately 750,000 cubic feet per day at a flowing tubing pressure of 3,150 psi. Subsequently, the well was shut-in and the Xu-4 Formation was isolated to test the shallower, Xu-5 Formation. Testing of the Xu-5 Formation is continuing and the Company will provide an update when this activity is completed.

Sunwing Energy is preparing a Provisional Development Plan for the Zitong block which will be submitted to PetroChina in mid-2011. The plan will provide PetroChina with a conceptual overview of the development activity Sunwing Energy plans to undertake across the block, and will be modified as longer-term testing and data evaluation continues on the Block.

Following the drilling of the Zitong-1 and Yixin-2 wells, areas excluding those identified for development and future production were to be relinquished. In January 2011, Sunwing Energy received advice from PetroChina that the exploration period has been extended for an additional six months.

Dagang - China

At the Dagang field, production after royalties was 750 net barrels of oil per day in 2010 compared to 1,240 net barrels of oil per day in 2009. No development wells were completed in 2010, however, the Company conducted five fracture stimulations during the year. After 2010 production, total proved and probable reserves increased 76 percent to 2,530 mbbls at December 31, 2010 from 1,435 mbbls December 31, 2009, mainly due to in-field performance improvements from continued water injections and an ongoing fracture stimulation program in the Dagang field. This program will continue in 2011 in order to offset normal field decline.

In 2010, quotas restricted production to 70,000 gross tonnes or approximately 1,400 gross barrels of oil per day. In 2011, production quotas are set at 80,000 gross tonnes or approximately 1,600 gross barrels of oil per day.

Mongolia - Block XVI

In late 2009 and early 2010, the Company acquired 465 kilometres of 2-D seismic over the Kherulen sub-basin within the Nyalga basin, resulting in a total of 925 kilometres of 2-D seismic data over Block XVI in Mongolia. This data was processed and interpreted during 2010 and several drilling locations have been identified within a targeted area. Following spring break-up, the Company expects to initiate drilling operations in Mongolia in mid-2011.

During the initial seismic program, approximately 16 percent of the block was declared to be an historical site and operations in this area were suspended. A letter from the Mineral Resources and Petroleum Authority of Mongolia ("MRPAM") states that the Company's year one of "Phase I" of its contract would be extended for one year from the time the Company is allowed to re-enter this particular area. To date, access has not been granted to this area and discussions with MRPAM are ongoing. As a result, the government has adjusted the dates in which the project year begins. Phase II is now considered to have commenced on July 20, 2010.

In 2010, in line with the terms of its Production Sharing Contract, the Company completed a 25 percent relinquishment of the lands within its contract area. With this relinquishment, the Company continues to hold a significant acreage position in Mongolia representing 12,679 square kilometres (3.1 million acres).

Pungarayacu Project - Ecuador

Ivanhoe Energy drilled two appraisal wells on Block 20 in Ecuador in 2010. The first appraisal well, IP-15, encountered certain cementing and completion problems prior to steam injection operations and testing was suspended without recovering oil.

The second appraisal well, IP-5b, was successfully drilled, cored and logged. The well was perforated in the Hollin Formation and steam was injected into the reservoir resulting in the production of heavy oil to the surface. These were the first barrels of oil ever to be produced from the Pungarayacu oil field.

Independent lab analysis of the oil produced from the IP-5b well indicates an API gravity of approximately 9 to 10 degrees. The oil demonstrated very favourable viscosity reduction at elevated steaming temperatures and contained dissolved gas, which further enhances its mobility in the reservoir and will positively impact thermal recovery potential. Oil produced from the IP-5b well was transported to Ivanhoe Energy's Feedstock Test Facility (FTF) in San Antonio, Texas and successfully tested using the Company's propriety HTL process. The final data is currently being analyzed.

The Hollin formation has exhibited favourable reservoir permeabilities. This is the primary sandstone reservoir and principal producing formation in the Oriente Basin, one of the most productive of the South American Sub-Andean Basins. Ivanhoe Energy sees variability between the two well locations, supporting the view that geological faulting is prevalent in Block 20 due to the close proximity to the Andes, directly west of the block.

In 2011, the Company plans to commence a seismic program starting in the southern portion of Block to increase understanding of the geological faulting and to determine locations for future appraisal wells.

HTL Process

During 2010, Ivanhoe Energy continued to make technical improvements related to its proprietary HTL technology. The improvements were achieved through a new process configuration developed by an in-house technical team at the FTF. These improvements enable conversion of residual content to synthetic crude oil through a simplified operation that delivers lower per-barrel capital and operating costs, and allows for larger volumes of crude to be processed in any given sized facility.

Ivanhoe Energy continues to pursue HTL business development opportunities globally, with an emphasis on creating value from stranded resources or resource accumulations considered too small to be economically viable using other technologies.

Financial Review

Ivanhoe Energy - Consolidated Financial Highlights
(thousands of U.S. dollars except per share amounts)

	Three Months Ended				Year Ended
	Dec. 31				Dec. 31
		2010		2009		2010		2009
Financial
Net loss from continuing operations	$	(9,163)	$	(11,915)	$	(29,110)	$	(37,731)
Net loss per share from continuing operations, basic and diluted	$	(0.03)	$	(0.04)	$	(0.09)	$	(0.13)
Net cash used in operating activities from continuing operations	$	(4,002)	$	(4,130)	$	(17,764)	$	(14,993)

Continuing Operations
Oil revenue - gross	$	6,166	$	5,309	$	21,720	$	24,968
Depletion and depreciation	$	2,216	$	2,560	$	8,960	$	19,868
Capital investments	$	25,294	$	8,650	$	86,285	$	26,373
Total assets (at end of period)	$	409,585	$	281,763
Cash and cash equivalents (at end of period)	$	67,817	$	21,512

Summary of Fourth Quarter

Oil revenue totalled $6.2 million in the fourth quarter of 2010 compared to $4.2 million in the third quarter of 2010, mainly due to increased sales volumes. Cash flow used in operating activities was $4.0 million during the fourth quarter of 2010 compared to $5.4 million in the third quarter of 2010. Capital investments during the fourth quarter increased to $25.3 million compared to $20.4 million in the third quarter of 2010.

Liquidity and Capital Resources

Ivanhoe Energy's cash and cash equivalents were $67.8 million at December 31, 2010, compared to $90.2 million at September 30, 2010. This decrease was primarily due to cash used in operating and drilling activities for the Company's business in China and, to a lesser extent in Canada, Mongolia and Ecuador.

Ivanhoe Energy's two initial heavy oil projects, in Canada and Ecuador, will require significant capital for full development. The Company's strategy is to finance the development of these two projects primarily with funding from strategic partners. Ivanhoe Energy is engaged in various discussions and due diligence efforts to establish key strategic and financing arrangements. The pace of the development of the Company's projects will be determined in conjunction with these strategic partnership discussions.

Subsequent Event

During the first quarter of 2011, Ivanhoe Energy received proceeds of Cdn$27.2 million from the exercise of 8.6 million Common Share Purchase Warrants which expired on February 25, 2011. These proceeds will be used for general corporate purposes.

This news release summarizes our 2010 year-end results of operations and financial condition and should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2010, which contains financial statements and Management's Discussion and Analysis of Financial Condition and Results of Operations. The Form 10-K was filed on March 16, 2011 and copies may be obtained from the Ivanhoe Energy website at www.ivanhoeenergy.com, on EDGAR at www.sec.gov or SEDAR at www.sedar.com.

Ivanhoe Energy is an independent international heavy oil development and production company focused on pursuing long-term growth in its reserves and production using advanced technologies, including its proprietary heavy oil upgrading process (HTL). Core operations are in Canada, Ecuador, and China, with business development opportunities worldwide. Ivanhoe Energy trades on the NASDAQ Capital Market with the ticker symbol IVAN and on the Toronto Stock Exchange with the symbol IE.

For more information about Ivanhoe Energy Inc. please visit our web site at www.ivanhoeenergy.com.

FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning the potential benefits of Ivanhoe Energy's heavy oil upgrading technology, the potential for commercialization and future application of the heavy oil upgrading technology and other technologies, statements relating to the continued advancement of Ivanhoe Energy's projects, the potential for successful exploration and development drilling, dependence on new project development and associated costs, statements relating to anticipated capital expenditures, the necessity to seek additional funding, statements relating to increases in production and other statements which are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions relating to matters that are not historical facts are forward-looking statements. Although Ivanhoe Energy believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the potential that the Company's projects will experience technological and mechanical problems, new project development will not proceed as planned, actual capital expenditures required will be higher than estimated, implementation of proposed scope changes does not result in lower operating expenses or enhanced project economics, regulatory approvals take longer than anticipated resulting in project development delays, the HTL technology to upgrade bitumen and heavy oil may not be commercially viable, geological conditions in reservoirs may not result in commercial levels of oil and gas production, the availability of drilling rigs and other support services, uncertainties about the estimates of reserves, the risk associated with doing business in foreign countries, environmental risks, changes in product prices, our ability to raise capital as and when required, competition and other risks disclosed in Ivanhoe Energy's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission on EDGAR and the Canadian Securities Commissions on SEDAR.

RESERVES DATA AND OTHER OIL AND GAS INFORMATION: Ivanhoe Energy's disclosure of reserves data and other oil and gas information in the Annual Report on Form 10-K is made in reliance on an exemption granted to Ivanhoe Energy by Canadian securities regulatory authorities, which permits Ivanhoe Energy to provide disclosure in accordance with U.S. disclosure requirements rather than in accordance with the requirements of Form 51-101F1. Reports on Form 51-101F2 and Form 51-101F3 have been filed in Canada concurrently with the Annual Report on Form 10-K and copies may be obtained at www.sedar.com.

The information provided by Ivanhoe Energy may differ from the corresponding information prepared in accordance with Canadian disclosure standards under National Instrument 51-101 (NI 51-101). Further information about the differences between the U.S. requirements and the NI 51-101 requirements is set forth under the heading "Reserves, Production and Related Information" in Ivanhoe Energy's Annual Report on Form 10-K.

Ivanhoe Energy Announces Testing of Xu-5 Formation at Zitong-1 Well in China to Commence

Fri, 11 Feb 2011 11:46:00 -0500

Feb 11, 2011

CALGARY, Feb. 11 /CNW/ - David Dyck, President and Chief Operating Officer of Ivanhoe Energy Inc. (TSX: IE, NASDAQ: IVAN) and Gerald Moench, President of Sunwing Energy Ltd., announced today that following the Chinese New Year holiday, Sunwing Energy has resumed site operations at its Zitong-1 well and is preparing to perforate and test the Xu-5 Formation. Test results are expected before the end of February.

Sunwing is the operator of the 659,840-acre (1,031 square miles) Zitong exploration block in Sichuan, and holds a 90% interest in a Petroleum Contract with PetroChina Company Limited. Mitsubishi Gas Chemical Company of Japan holds the remaining 10% interest.

For more information about Ivanhoe Energy Inc. please visit our web site at www.ivanhoeenergy.com.

FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements concerning the estimated quantities of gas in each target in the Guan structure, the anticipated amount of time required for, and the estimated cost of, drilling, testing and casing the Yixin-2 and Zitong-1 wells and other statements which are not historical facts. When used in this document, the words such as "could", "plan", "estimate", "anticipate", "intend", "may", "potential", "should", and similar expressions relating to matters that are not historical facts are forward-looking statements. Although Ivanhoe Energy and Sunwing Energy believe that their expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements include the possibility that the company will be unable to raise financing, the potential that the company's projects will experience technological and mechanical problems, geological conditions in reservoirs may not result in commercial levels of oil and gas production, the availability of drilling rigs and other support services, uncertainties about the estimates of the reserves, the risk associates with doing business in foreign countries, environmental risks, changes in product prices, our availability to generate cash flow and raise capital as and when required, competition and other risks disclosed in Ivanhoe Energy's Annual Report on Form 10-K files with the U.S. Securities and Exchange Commission on EDGAR and the Canadian Securities Commissions on SEDAR.