Ivanhoe Forecasts Huge Production Increase by Year-End

Ivanhoe Energy updates the company's production forecast for 2004. As announced on March 29th, Ivanhoe is planning to drill up to 65 wells in 2004. This program is expected to deliver estimated production rates, net before royalties, of between 3,400 and 4,400 BOEPD (barrels oil equivalent per day) by the end of 2004, a significant increase over the company's 2003 year-end production of 1,035 BOEPD.

The two principal areas of exploration and development this year are in China and California, where Ivanhoe holds working interests from 40% to 100%.

"The 2004 program demonstrates our commitment to add oil and gas reserves through the drilling of low-risk development wells and through selected exploration opportunities that increase our daily production of oil and gas, generate recurring cash flow and add value to the company," said David Martin, Chairman of Ivanhoe Energy.

"The 2004 drilling program is part of a multi-year effort to grow the company through development of its existing resource base. The company plans an ongoing drilling and capital program in 2005 that is expected to further increase production, reserves and cashflow."

In addition to growth through drilling existing resources, the company may pursue opportunities to enhance value through partnerships, exchanges and acquisitions, or disposals of assets that may increase or decrease its forecast of year-end production. The 2004 production forecast involves risks and uncertainties and no assurance can be given that actual results will be consistent with these forecasts.