Ivanhoe Energy's New Natural Gas Well in California on Production

Ivanhoe Energy has placed the first well from its new North Salt Creek gas field discovery onto production at a rate of 800 Mcf/day.

The 2,500-foot well at the North Salt Creek prospect was completed in June, 2005. A pipeline has been built and gas sales commenced on September 1, flowing at a rate of 500 Mcf/day with stable pressure. This week, the sales rate has been increased to 800 Mcf/day and pressure is being monitored. The rate may be raised further if pressure stabilizes at this level.

A multi-well drilling program is scheduled to commence in late October, which will test additional zones encountered during drilling of the first well. The initial well encountered multiple oil and gas bearing horizons in the Diatomite and Etchegoin Formations. The timing of the drilling program will depend on rig availability.

Ivanhoe Energy is the operator of the well and owns a 24% working interest in the well and the 370-acre prospect. The well is located at the north end of Cymric Oil Field in the San Joaquin Basin of California.

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