Ivanhoe Energy Produces High Quality Upgraded Heavy-Oil Product with Novel Process Design

    BAKERSFIELD, CA, March 13 /CNW/ - Ivanhoe Energy Inc. (NASDAQ:   IVAN and
TSX: IE), has successfully produced a "High Quality" product at its heavy oil
upgrading (HTL) Commercial Demonstration Facility (CDF) in California. This
High Quality upgraded oil was produced using an innovative operating method
based on a simple, once-through configuration. This innovative operating mode
represents an additional processing option for Ivanhoe Energy, and is
appropriate for a number of key identified market opportunities, including
bitumen production in the Athabasca Oil Sands of Western Canada.
    This new approach significantly extends the flexibility of Ivanhoe
Energy's HTL technology and can improve the economics in certain field
applications where a significant amount of by-product energy is required.
Operated on its own, the new configuration, compared with other High Quality
processing configurations, will allow for the production of a higher quality
product together with higher amounts of by-product energy. Operated in
conjunction with other configurations, this new process allows Ivanhoe Energy
to better tailor its HTL plant design configurations to market opportunities.
In addition to Ivanhoe Energy's current patent protection and new patent
claims that have been applied for, a patent application has been filed for
this new process design.
    The upgraded oil produced in this configuration has a viscosity reduction
of over 99%, and had other characteristics superior to upgraded product
produced in previous test runs. In addition, this configuration allows for the
production of higher amounts of by-product energy than in previously
demonstrated configurations, offset by slightly lower liquid volume yields.
Third-party analysis of product samples from the 26-hour run announced in
February confirmed the product characteristics of this configuration. Since
then, a 31-hour run at the CDF has validated the mechanical stability of this
processing method.
    "This design, which has been the result of substantial effort, represents
an attractive processing alternative for specific, identified opportunities in
Western Canada and elsewhere," said Joe Gasca, Ivanhoe Energy's President and
CEO. "Together with processing configurations already demonstrated, this
approach provides Ivanhoe Energy with enhanced flexibility in designing our
facilities to match specific market requirements."
    Dr. Robert Graham, Ivanhoe Energy's Chief Technology Officer said, "This
new configuration enhances the potential of our HTL process by adapting and
integrating readily available, proven equipment with our simplest operating
mode. This addition to our portfolio of processing techniques is further
evidence of the broad flexibility and powerful scope of our core HTL
    Ivanhoe Energy's proprietary, patented heavy oil upgrading technology
(HTL) upgrades the quality of heavy oil and bitumen by producing lighter, more
valuable crude oil at lower costs and in smaller-sized plants than
conventional technologies. The process also produces by-product energy that
can be used to generate steam or electricity.

    Conference Call

    Ivanhoe Energy will host a conference call tomorrow, Wednesday, March 14,
2007, for investors and analysts at 4:30 p.m. EDT (1:30 p.m. PDT) to discuss
recent announcements along with 2006 fourth quarter results and operations.
The conference call may be accessed by dialing 1-866-540-8136 in Canada and
the United States, or 1-416-340-8010 in the Toronto area and internationally.
A simultaneous webcast of the conference call will be provided through
www.ivanhoeenergy.com and www.newswire.ca/webcast. If you are unable to
participate in the call it will be archived for later playback by dialing 
1-416-695-5800 and entering the pass code 3215469 followed by the number sign,
or via www.ivanhoeenergy.com. The archived playback will be available until
April 14, 2007.

    Ivanhoe Energy is an independent international oil and gas 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 the United States 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.

    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, potential advancements to the technology 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 HTL test facility
may experience technical and mechanical difficulties, the HTL process to
upgrade heavy oil and bitumen may not be commercially viable, patent
applications may not be approved as submitted or at all, 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.

For further information:

For further information: Cindy Burnett, (604) 331-9830; Website:

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