Ivanhoe Energy Reports 2012 Financial Results

                Ivanhoe Energy Reports 2012 Financial Results

PR Newswire

CALGARY, March 18, 2013

Company Revitalized and Positioned to Execute on Key Priorities

Note: All figures are quoted in U.S. dollars unless otherwise noted.

CALGARY, March 18, 2013 /PRNewswire/ - Ivanhoe Energy Inc. (TSX: IE; NASDAQ:
IVAN) is reporting today its 2012 financial results and 2013 business plan.

In 2012,  Ivanhoe  Energy restructured  and  right-sized the  organization  to 
strengthen the  balance sheet  and  better organize  the Company  to  leverage 
expertise and resources and build long-term shareholder value.

The Company  divested non-core  assets including  the Zitong  Block  contract, 
which was transferred to Shell  China Exploration and Production Company,  and 
the wholly-owned subsidiary Pan-China  Resources Ltd., which  was sold to  MIE 
Holdings Corporation. Both transactions were completed in December 2012.

Ivanhoe   Energy   is   focused   on   maintaining   financial    flexibility, 
commercializing  its  patented  and   proprietary  Heavy-to-Light  heavy   oil 
upgrading technology and achieving project  milestones at its two  world-class 
assets: the Tamarack oil sands project in Canada and Block 20 in Ecuador.

Year End Financial Summary

Ivanhoe Energy  filed its  year-end financial  report on  Form 10-K  with  the 
United States Securities and Exchange  Commission for the year ended  December 
31, 2012.

The divestitures of the Zitong Block and the Pan-China Resources subsidiary
strengthened the balance sheet by providing an initial cash infusion of $131.8
million, allowing the Company to retire its short-term debt. The remaining
pre-tax proceeds of just over $14 million, less any additional adjustments,
are expected by mid-year 2013.

The Company posted a net loss from continuing operations of $64 million, which
represents a year-over-year increase of $37.2 million. This increase was
driven by $20.2 million more in exploration and evaluation expenses, the
majority of which was related to the drilling of IP-17 in Ecuador, as well as
a lower gain on derivative instruments in 2012 than that experienced in 2011.

The Company's capital investments amounted to $47.4 million in 2012, which is
slightly less than the $51 million invested in 2011. This amount included
$12.4 million for a seismic program at Zitong, $7.3 million for drilling two
wells at Dagang and $23.4 million to drill IP-17, which was later reclassified
as an expense because non-commercial quantities of oil were found.

                                                          
(US$000s, except per share              Three months        Year ended
amounts)                             ended Dec. 31,            Dec. 31,
(unaudited)                        2012     2011        2012      2011
                                                                 
Net loss from continuing       (12,820)  (8,758)    (64,018)  (26,761)
operations
Net loss per share, from         (0.04)   (0.03)      (0.19)    (0.08)
continuing operations*
                                                                 
Net income (loss)**              35,538  (5,882)    (14,374)  (25,276)
Net income (loss) per              0.10   (0.02)      (0.05)    (0.07)
share, basic and diluted
                                                                 
Net cash used in operating     (12,895)  (7,567)    (27,060)  (26,245)
activities
Capital investments             (4,073)  (2,982)    (47,444)  (51,060)
                                                                 
Cash and cash equivalents        62,819   16,890      62,819    16,890
(end of period)
Restricted cash                  20,500   20,500      20,500    20,500

* Basic and diluted
** Including discontinued operations

Liquidity and Capital Resources

At the end of 2012, Ivanhoe Energy had approximately $83 million in cash and
cash equivalents (inclusive of the restricted cash balance). The majority of
this balance relates to the receipt of proceeds associated with the
divestiture of the Zitong and Dagang assets.

  *As a result of the transfer of interest in the Zitong Block to Shell
    China, Ivanhoe Energy will receive $105 million in total. Initial pre-tax
    proceeds of approximately $96.2 million were received on closing. The
    remaining proceeds will be received by mid-year, with ultimate values
    dependent on audit and post-closing adjustments.
  *As consideration for the sale of Pan-China Resources to MIE Holdings, the
    Company received $45 million in cash, less $5.4 million in adjustments and
    a $4.0 million holdback. The Company will receive the holdback amount six
    months after closing, assuming no claims from MIE Holdings.
  *Subsequent to December 31, 2012, Shell assumed the obligations under the
    Zitong Supplementary Agreement and replaced Ivanhoe's performance bond
    with its own. The collateral for Ivanhoe's performance bond, presented as
    restricted cash on the Company's balance sheet at December 31, 2012, was
    released and received by the Company on February 1, 2013.

General and Administrative Expenses

General and administrative (G&A) expenses mainly consist of staff, office,
legal and other contract services costs. In 2012, the Company incurred G&A
expenses of $31.1 million, which was a decrease of $7.5 million compared to
costs of $38.6 million in 2011. G&A expenses were primarily lower in 2012 due
to lower staff costs related to the Company's compensation and share-based
payment programs. Additionally, legal costs decreased due to a favorable
ruling on an outstanding legal claim that allowed the Company to recover
approximately $500,000 of its past legal expenses. The Company anticipates
even greater G&A savings in 2013 as it winds up its Asian subsidiary, Sunwing
Energy. Ivanhoe's total number of employees is estimated to decrease by 100
people as a result of this initiative.

Share Consolidation

The company intends to present a common share consolidation proposal at the
Annual General Meeting of shareholders, to be held on April 22, 2013.

The share consolidation proposal is intended to achieve both tactical and
strategic objectives. Tactically, the Company's shares must trade above $1
for 10 consecutive days by May 20, 2013 in order to maintain its NASDAQ
listing. Maintaining this avenue to trade the Company's shares and enhance
liquidity is a key objective of the management team and the Board of
Directors. Strategically, a tighter capital float will facilitate future
growth initiatives and provide greater visibility in the capital markets,
re-positioning the Company's stock price amongst its peers and providing the
Company a solid base from which to grow.

As planned, shareholders would receive 1 new consolidated common share for
every 2.5 to 3.5 existing common shares; the final ratio will be determined by
management closer to the execution of the consolidation. Details regarding the
proposal will be outlined in Ivanhoe's management proxy circular to be mailed
to shareholders of record on or about March 28, 2013.

Undertaking a share consolidation at this time reinforces the Company's
concerted efforts to refocus and restructure itself around its core
competencies to create shareholder value.

Heavy-to-Light (HTL)

HTL is a process that significantly increases the economic viability of heavy
oil by partially upgrading it at the well site or in a centralized merchant
model and creating a synthetic crude oil that is more valuable to
international refineries. Ivanhoe Energy validated this perspective by
consulting with several international energy consultants in 2012 and
determined that HTL synthetic crude oil should trade on par with Brent.

Additionally, in 2012 the Company continued to enhance its engineering and
patent work. At this time, the Company has 57 patents issued and an
additional 56 patents pending. Currently, HTL is protected until 2028;
however, the patents currently under review will extend the protection until
2031. The patents protect HTL globally, across more than 35 countries. All
components of the HTL process are included within these patents.

In addition to installing HTL Plants in our own projects, Ivanhoe Energy
continues to explore projects using a variety of business models in
geography's where installing an HTL plant makes technical and economic sense.
In 2013, the Company is focused on signing a partnership that will lead to
commercializing its technology.

Project Highlights

Tamarack - Canada

Achieving regulatory approval for Tamarack is on track and progressing
favorably. In 2012, the Company responded to two additional rounds of
supplemental information requests. In January 2013, Ivanhoe received a
Completeness Determination from Alberta Environment and Sustainable Resource
Development (AESRD). This determination confirms that the AESRD has no
further technical questions and has deemed the application complete. The
Company continues to work with the Energy Resources Conservation Board and
local stakeholders to resolve concerns raised by stakeholders in their
Statements of Concern (SOCs). To date, three SOCs have been removed, and the
Company is making significant progress with the remaining four SOCs. Once all
SOCs are addressed, the Company expects to secure regulatory approval, which
is now anticipated to occur in the second quarter of 2013.

As disclosed in January 2013, the Company commenced a winter data acquisition
program to assist in the optimal placement of Steam Assisted Gravity Drainage
(SAGD) well pairs.

Seismic data has been gathered and will now be processed and interpreted. The
drilling program continues; field work will be complete by the end of March.
All results from this program are anticipated by the end of the summer.

A robust program to attract and secure a partner is in place.

Block 20 - Ecuador

Ivanhoe Energy continues to advance partner discussions with a group that is
interested in Block 20. Both parties reached consensus on the framework of a
potential arrangement; subject to the government of Ecuador approvals.
Discussions between the government, Ivanhoe and the potential partner continue
and a successful conclusion is anticipated by mid-year 2013.

During the drilling of IP-17 in 2012, south of the Napo River, the Company
found significant feet of lithology containing organic matter, which is the
precursor for the generation of hydrocarbons. While IP-17 did not contain
commercial quantities of hydrocarbons, the data gathered led to Gaffney, Cline
& Associates to increase their Original Oil in Place (OOIP) estimates to
include similar horizons (Hollin formation) that formed the basis of their
original report. The Block's total best OOIP resources, of 6.43 Billon
barrels, was increased by 180 million barrels (Low Case) and 480 million
barrels (High Case), with a Best Case amount increase of 320 million barrels.

Canadian reporting standards require hydrocarbon volumes be classified in
accordance with the categories prescribed by the Canadian Oil and Gas
Evaluation (COGE) Handbook. Hence, Block 20 discoveries to date are
classified as "discovered petroleum-initially-in-place".

During 2013, Ivanhoe Energy Ecuador will execute a drilling and seismic
program north of the Napo River, starting with the drilling of Ivanhoe's
fourth well, IP-14, in the second quarter. This well is located in the
northern portion of Block 20 targeting the cretaceous Hollin formation, at a
total depth of 950 feet. It is anticipated that drilling will be completed
within 20 days. The well's objective is to test an isolated zone believed to
be caused by faulting where API gravity and viscosity may be better than that
observed to date.

Overall, in 2013 Ivanhoe Energy intends to maintain its financial flexibility
and its strong safety and environmental practices. Additionally, management
continues to look for potential partnerships or acquisitions of producing
heavy oil fields that can be effectively upgraded using HTL. Acquiring this
kind of production would provide a faster route to cash flow and potentially a
quicker pathway to commercialize HTL.

Ivanhoe Energy to host a conference call

To discuss Ivanhoe Energy's 2012 financial summary and 2013 business strategy,
the Company will conduct a conference call for investors, analysts and other
interested parties on Monday, March 18, at 7:00 am Mountain Time (9:00 am
Eastern Time).

Please contact the conference call operator five minutes prior to the call,
noting "Ivanhoe Energy" as the company. The conference line is available:

  *For participants in Canada and the United States via 1-888-231-8191
  *For participants in the Toronto area and internationally via
    1-647-427-7450

Additionally, a simultaneous webcast of the conference call will be available
through www.ivanhoeenergy.com

The call will be archived for later playback until March 25^th by dialing
1-416-849-0833 and entering the pass code 20550929. For the next three months
the call can also be accessed via the webcast at www.ivanhoeenergy.com.

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Ivanhoe Energy is an independent international heavy oil exploration and
development company focused on pursuing long-term growth in its reserves and
production using advanced technologies, including its proprietary heavy oil
upgrading process (HTL^TM). Core operations are in Canada, United States,
Ecuador and Mongolia, with business development opportunities worldwide.
Ivanhoe Energy trades on the Toronto Stock Exchange with the ticker symbol IE
and on the NASDAQ Capital Market with the ticker symbol IVAN.

For   more   information    about   Ivanhoe   Energy    Inc.   please    visit 
www.ivanhoeenergy.com.

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 the potential for commercialization and future
application of the heavy oil upgrading technology and other technologies,
statements relating to the continued advancement of Ivanhoe Energy's projects,
statements relating to the timing and amount of proceeds of agreed upon and
contemplated disposition transactions, statements relating to anticipated
capital expenditures, statements relating to the timing and success of
regulatory review applications, 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, new product development
will not proceed as planned, the HTL^TM technology to upgrade bitumen and
heavy oil may not be commercially viable, 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, the risk associated with doing business in foreign
countries, environmental risks, changes in product prices, our ability to
raise capital as and when required, our ability to complete agreed upon and
planned asset dispositions, competition and other risks disclosed in Ivanhoe
Energy's 2012 Annual Report on Form 10-K filed with the U.S. Securities and
Exchange Commission on EDGAR and the Canadian Securities Commissions on
SEDAR.

SOURCE Ivanhoe Energy Inc.

Contact:

Hilary McMeekin
Manager, Corporate Communications
(403) 817 1108
hmcmeekin@ivanhoeenergy.com
 
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