Ivanhoe Energy Updates Bossier Trend Project

Ivanhoe and its joint venture partner Unocal have spudded their third well in the Bossier Gas Trend. The Dubose Williford No. 1 well, on the Lone Star prospect in Freestone County, is expected to take approximately six weeks to drill and complete to a proposed total depth of 11,600 feet.

Completion operations are continuing on the second of two wells drilled recently at the Creslenn Ranch prospect in Henderson County. The Bossier sands in the 2-Trinity Materials well have been fractured and evaluations are underway to determine the potential for commercial levels of natural gas production. Following the production tests of the Bossier sand interval, completion operations will be evaluated for the shallower Cotton Valley sand interval where natural gas potential was indicated while drilling. After this well is fully evaluated, completion operations will be determined for the 1- Trinity Materials well, where Bossier sands were also encountered.

"We have an extensive acreage position in the Bossier Gas Trend, with several more prospects identified, so while the wells at Creslenn Ranch are being evaluated, we are proceeding with the exploration program," stated Mr. Martin.