Ivanhoe Energy Successfully Completes Athabasca Bitumen Test

    Focus Increases on Heavy Oil Opportunities in Western Canada

    BAKERSFIELD, CA, June 27 /CNW/ - Ivanhoe Energy Inc. (NASDAQ:   IVAN and
TSX: IE) has successfully completed its key Athabasca bitumen test run at
Ivanhoe Energy's Commercial Demonstration Facility (CDF) in California using
its proprietary heavy oil upgrading technology (HTL(TM)). This test was an
important step for Ivanhoe Energy's business development activities, as well
as for the design of full-scale HTL facilities. This run represents the
culmination of the CDF testing program carried out over the last two years.
    "This successful Athabasca bitumen test is an important milestone for
Ivanhoe Energy as we advance our commercial discussions in Western Canada,"
said Joe Gasca, Ivanhoe Energy's President and CEO. "The HTL process
incorporates numerous advantages over conventional producing and upgrading
approaches for heavy oil, and in Athabasca, all of our key benefits come into
play: virtual elimination of viscosity, generation of significant amounts of
on-site energy, and the capture of heavy-light price differentials, all in
smaller-sized plants than conventional technologies."
    This test run was carried out pursuant to a technology development
agreement entered into in August 2000 between predecessors of Ivanhoe Energy
and ConocoPhillips Canada Resources Corp. (ConocoPhillips Canada).
ConocoPhillips Canada provided Ivanhoe Energy with the Athabasca bitumen.
ConocoPhillips Canada has certain non-exclusive, capacity and time-specific
rights to use the HTL technology in Canada.
    The test run was witnessed by a third party engineering firm in
preparation for the formalization of key investment banking relationships for
Ivanhoe Energy.
    The bitumen trial was a continuous multi-day run, and was successfully
concluded when the feed tank was emptied. The trial demonstrated the
processing of Athabasca bitumen in a continuum of HTL operating modes, ranging
between the High Yield and High Quality configurations. This operational
flexibility allows Ivanhoe Energy to match a commercial HTL facility to
specific heavy oil field requirements. Ivanhoe Energy will use the information
derived from the test for the design and development of full-scale commercial
projects in Western Canada.
    Dr. Robert Graham, Ivanhoe Energy's Chief Technology Officer said, "We
are very pleased with the operational results of this trial. We had a
flawless, continuous run, applying multiple HTL operating configurations, and
all of our goals were achieved. We will now proceed with detailed product and
data analysis, in accordance with our protocols with ConocoPhillips Canada."
    Product samples generated using Ivanhoe Energy's recently installed
Reaction Mixed Sampling (RMS) process have been sent to an independent lab for
analysis. Information related to product characteristics will be released in
due course as appropriate and as allowed under confidentiality agreements,
together with other disclosable product information resulting from additional
recent tests at the CDF.
    This Athabasca test run is the first run carried out at the CDF that has
focused on crude testing for HTL commercial project development purposes in
Western Canada. Ivanhoe Energy is engaged in key commercial discussions with
resource owners in Western Canada and this run is an important step in
advancing those discussions.
    Ivanhoe Energy's proprietary, patented heavy oil upgrading technology
(HTL(TM)) produces lighter, more valuable crude oil from heavy oil and bitumen
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

    Conference Call
    Ivanhoe Energy will host a conference call today for investors and
analysts at 4:30 p.m. EDT (1:30 p.m. PDT) to discuss the successful completion
of its key Athabasca bitumen test run. The conference call may be accessed by
dialing toll-free 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 3227459 followed by the number sign, or via www.ivanhoeenergy.com. The
archived playback will be available until July 27, 2007.

    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 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, 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 process to upgrade heavy oil and bitumen may not be
commercially viable, samples from the Athabasca bitumen test may not have the
product qualities anticipated, market acceptance of the HTL technology may not
be as anticipated, Ivanhoe Energy's lack of history in developing commercial
HTL opportunities, 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:
www.ivanhoe energy.com

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