Ivanhoe Energy and Derek Oil & Gas Provide Update on LAK Ranch Project

Ivanhoe Energy and Derek Oil & Gas Provide Update on LAK Ranch
Project 


VANCOUVER, June 14  /PRNewswire-FirstCall/ -- Ivanhoe Energy Inc. (NASDAQ:
IVANNASDAQ:andNASDAQ:TSX:NASDAQ:IENASDAQ:IE.U) and Derek Oil & Gas Corporation
have agreed to expand the enhanced oil recovery pilot program at the LAK Ranch
field in Weston County, Wyoming.

The pilot steam flood in the LAK Ranch field will be expanded with the drilling
of three steam injection wells. This expansion follows completion of a 3-D
seismic survey of the area and a thorough interpretation of the survey results.
The new wells will provide for continuous injection of steam above the existing
horizontal wells. The pilot program to date has consisted of three cycles of
steam injected into a horizontal producing well. Temperature has been monitored
in an adjacent horizontal well, located approximately 25 feet above the
injection well. Oil production has increased with each cycle and is currently
about 20 barrels per day following the third steam cycle.

The LAK Ranch field, originally discovered in the 1920s, covers approximately
7,500 acres in the Powder River Basin. Thirty wells have been drilled by
several operators to define the significant oil in place for this project, and
a number of small scale attempts have been made to economically recover the
oil. Ivanhoe Energy believes the use of horizontal wells and continuous steam
injection offers the most promising chance of success and some encouraging
results have been achieved to date. The pilot expansion is expected to be
completed by August pending drill rig availability.

Ivanhoe Energy currently holds a 39% interest in the project and Derek Oil &
Gas holds 56%, with 5% held by another party. Following the pilot phase,
Ivanhoe Energy has the option to increase its working interest to 60% by
providing additional capital toward the initial development phase for a total
of US$5 million, including the amounts spent on the pilot phase. Should Ivanhoe
Energy elect not to proceed beyond the pilot phase, its working interest will
be reduced to 15% and Derek Oil & Gas will become the operator.

Ivanhoe Energy is an independent international oil and gas exploration and
development company building long-term growth in its reserve base and
production. Core operations are in the United States and China, with business
development opportunities worldwide. Ivanhoe Energy is a leader in the
application of technologically innovative methods designed to significantly
improve the company's reserve base and production, including 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).

Ivanhoe Energy trades on the NASDAQ SmallCap 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.

  Information contacts for Ivanhoe Energy:
  ----------------------------------------
  In North America:  Cindy Burnett 604-331-9830
  In Asia:           Patrick Chua 86-1370-121-2607/852-9193-4056
  Website:           http://www.ivanhoe-energy.com/



Derek Oil & Gas Corporation is an oil exploration & development company with
its key asset the LAK Ranch in NE Wyoming. Through enhanced oil recovery (EOR)
methods Derek's JV partner, Ivanhoe Energy (operator) provides the technical
expertise for this project. Derek's main focus is to increase shareholder value
through higher levels of oil production at the LAK Ranch project.

Derek Oil & Gas Corporation trades in both Canada on the TSX Venture exchange
under the symbol DRK and in the United States of America on the OTC Bulletin
Board under the symbol DRKOF.

  The TSX Venture Exchange has neither approved nor disapproved of the
  information contained herein.

  Information contacts for Derek Oil & Gas Corporation:
  -----------------------------------------------------
  Erica Bearss
  VP Corporate Communications
  Toll Free:         1-888-756-0066
  Office Tel.:       [phone]
  Email:             
  Website:           http://www.derekoilandgas.com/



FORWARD-LOOKING STATEMENTS: This document includes forward-looking statements.
Forward-looking statements include, but are not limited to, statements
concerning estimates of timing of drilling exploration and development wells,
planned additional exploration, statements relating to the continued
advancement of the LAK Ranch project, 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 are forward-looking statements. Although Ivanhoe Energy and
Derek Oil & Gas believe that their 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 LAK Ranch project will experience technological and
mechanical problems, environmental risks, geological conditions in the
reservoir may not result in commercial levels of oil and gas production,
changes in product prices, the partners' ability to raise capital as and when
required, competition and other risks disclosed in Ivanhoe Energy's Annual
Report on Form 10-K and Derek Oil & Gas Corporation's Form 20-F, filed with the
U.S. Securities and Exchange Commission. 

DATASOURCE: Ivanhoe Energy Inc.



CONTACT: Information contacts for Ivanhoe Energy: In North America:

Cindy Burnett, [phone]; In Asia: Patrick Chua, 86-1370-121-2607 or

852-9193-4056; Website: http://www.ivanhoe-energy.com/; Information contacts
for Derek

Oil & Gas Corporation: Erica Bearss, VP Corporate Communications, Toll Free:

1-888-756-0066, Office Tel.: [phone], Email:

, Website: http://www.derekoilandgas.com/;

To request a free copy of this organization's annual report, please go to

http://www.newswire.ca/ and click on reports@cnw.

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