Ivanhoe Disputes Allegations in Lawsuit over Ecuador Oilfield Development

David Martin, Chairman and CEO of Ivanhoe Energy Latin America Inc., said today that allegations reportedly contained in a recently filed lawsuit that seeks to contest a contract awarded to Ivanhoe Energy Ecuador Inc. to develop Ecuador's Pungarayacu heavy-oil field are false and totally without merit.

Martin said that Ivanhoe Energy will vigorously protect the interests of the company and its shareholders in any court proceeding.

Ivanhoe Energy Latin America announced October 8 that it had signed a contract with Ecuador's state oil companies Petroecuador and Petroproduccion to explore and develop the Pungarayacu field, utilizing Ivanhoe's HTL upgrading technology.

The contract was signed in a ceremony in the Presidential Palace in Quito, Ecuador's capital, attended by President Rafael Correa, the President's cabinet and senior ministers, Petroecuador's Executive President Luis Jaramillo and Petroproduccion's Vice-President Camilo Delgado.