TMX group

BAKERSFIELD, CA, Jan. 25 /CNW/ - Ivanhoe Energy Inc. (NASDAQ: IVAN and
TSX: IE, IE.U) announced today that the test phase of the Aera Energy LLC
Northwest Lost Hills 1-22 deep well has begun. Ivanhoe Energy has a 28%
working interest in the project, but is not funding any of the cost of the
test phase.
The NWLH 1-22 well was flow tested for two days, beginning January 21,
which was followed by a pressure build-up. Natural gas rates from the
production test were less than expected and water rates were high. A second   
24-hour flow test is scheduled for January 25, followed by a 24-hour pressure
build up, which will be used to verify the initial test data.
"The test data is still being evaluated, however the initial results are
not promising," said Leon Daniel, Ivanhoe Energy's President and CEO. "A final
determination by the operator of the future of the project is expected to be
made before the end of the first quarter of 2006."
The well is in Kern County, California, and is operated by Aera Energy
LLC. Designed to evaluate the natural gas and condensate reserve potential of
the deep Temblor formation, drilling of the well began in August 2001 and
reached a depth of 21,000 feet in August 2002. Several high-pressure sandstone
formations were penetrated during the drilling, indicating the presence of
natural gas. Operations were suspended by the operator in 2002 while a partner
was sought to share the costs of the testing program. Completion activities
were resumed in September 2005. During clean out of the well, natural gas was
encountered and flared and the pressure, both downhole and at the surface, was
extremely high.
Ivanhoe Energy currently holds a 28% working interest. Ivanhoe Energy
originally had a 42% interest in the 9,600-acre block, but farmed out a
portion of its ownership in exchange for the cost of testing of the well.
Ivanhoe Energy is being carried through the initial completion and testing
phase by other partners in the venture.

Ivanhoe Energy is an independent international oil and gas exploration
and development company building long-term growth in its reserve base and
production. Ivanhoe Energy is a leader in technologically innovative methods
designed to significantly improve reserves of oil and gas through the
upgrading of heavy oil to light oil, state-of-the-art drilling techniques,
enhanced oil recovery (EOR) and the conversion of natural gas to liquids
(GTL). 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 (TSX) with the symbol IE. On the TSX,
Ivanhoe Energy is listed and traded in both Canadian and U.S. dollars. The
U.S. dollar trading symbol on the TSX is IE.U.

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 relating to the continued
advancement of Ivanhoe Energy's projects, estimates of reserves and
production, the potential commerciality of the Northwest Lost Hills 1-22 deep
well 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
company's projects will experience technological and mechanical problems,
geological conditions in reservoirs may not result in commercial levels of oil
and gas production, the availability of drilling rigs and other support
services, uncertainties about the estimates of reserves, environmental risks,
changes in product prices, our ability to raise capital as and when required,
competition and other risks disclosed in Ivanhoe'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.

RESERVES DATA AND OTHER OIL AND GAS INFORMATION: Ivanhoe Energy's
disclosure of reserves data and other oil and gas information is made in
reliance on an exemption granted to Ivanhoe Energy by Canadian securities
regulatory authorities, which permits Ivanhoe Energy to provide disclosure in
accordance with U.S. disclosure requirements.
The information provided by Ivanhoe Energy may differ from the
corresponding information prepared in accordance with Canadian disclosure
standards under National Instrument 51-101 (NI 51-101). Further information
about the differences between the U.S. requirements and the NI 51-101
requirements is set forth under the heading "Reserves, Production and Related
Information" in Ivanhoe Energy's Annual Report on Form 10-K.