Attention Business Editors

Ivanhoe Energy sells its US oil and gas operations for US$40 million

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	    Sale proceeds and personnel to be redeployed to Ivanhoe Energy's HTL
	    (Heavy-to-Light) heavy-oil projects
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	    VANCOUVER, July 20 /CNW/ - Robert Friedland, Executive Chairman,
President and Chief Executive Officer of Ivanhoe Energy Inc. (TSX: IE; NASDAQ:
IVAN), announced today that Ivanhoe Energy has sold its US oil and gas
operations to Seneca South Midway LLC, a subsidiary of Seneca Resources
Corporation, for total proceeds of approximately US$40 million. Seneca
Resources Corporation is the Exploration and Production segment of National
Fuel Gas Company (NYSE: NFG). This sale is consistent with Ivanhoe Energy's
goal of focusing its financial and human resources on its HTL (Heavy-to-Light)
heavy-oil projects, including the Tamarack Project in Western Canada and the
Pungarayacu project in Ecuador.
	    The sale includes all of Ivanhoe Energy's oil and gas exploration and
production operations in the United States. As of June, 2009, these assets
produced approximately 645 gross (595 net) barrels per day of oil in
California and Texas. The sale also includes certain exploration acreage in
California.
	    The net proceeds from the sale, after repayment of debt and transaction
expenses, are estimated at approximately US$34 million. These proceeds will be
used to advance the initial stages of the Tamarack and Pungarayacu projects
and for general corporate purposes. Ivanhoe Energy's key heavy-oil experts
based in Ivanhoe Energy's US operations will be redeployed to work on the
company's Tamarack or Pungarayacu projects.
	    Ivanhoe Energy's operations now will be concentrated on the development
of its first two HTL heavy-oil projects, Tamarack in Canada and Pungarayacu in
Ecuador, and the pursuit of additional heavy-oil opportunities in Canada,
South America, the Middle East and North Africa. In addition, Ivanhoe Energy
will continue with oil and gas operations in China under its wholly-owned
subsidiary, Sunwing Energy Ltd.
	    "This sale allows Ivanhoe Energy to focus our financial and human
resources on our true competitive strengths," said Mr. Friedland. "We
currently have two world-class heavy-oil projects underway driven by the
application of our game-changing HTL technology, and we have significant
additional opportunities in our sights."
	    Ivanhoe Energy is marking this important development with the launch of a
new corporate logo and upgraded and redesigned website at
www.ivanhoeenergy.com.
	    Ivanhoe Energy was advised by Tristone Capital on this transaction.

	    Seneca, the exploration and production segment of National Fuel Gas
Company, explores for, develops and purchases natural gas and oil reserves in
California, the Appalachian region and in the Gulf Coast region of Texas and
Louisiana. Currently, Seneca's efforts are focused on evaluating, exploring
and developing reserves in the Appalachian basin, economically producing
reserves in California and exploiting opportunities in the shallow waters of
the Gulf of Mexico. Additional information about Seneca and National Fuel is
available at www.nationalfuelgas.com.

	    Ivanhoe Energy is an international oil and gas company with a focus on
heavy-oil development and production. Ivanhoe Energy uses technologically
innovative methods to significantly improve the development of heavy oil and
other oil and gas assets, including the application of its patented HTL
(heavy-to-light) heavy-oil upgrading process. Core operations are in Canada,
Ecuador, 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 with the symbol IE.

	    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 concerning the potential benefits
of Ivanhoe Energy's heavy oil upgrading technology, 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, the potential for successful exploration and
development drilling, dependence on new product development and associated
costs, statements relating to anticipated capital expenditures, the necessity
to seek additional funding, statements relating to increases in production 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 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, competition and other risks disclosed in
Ivanhoe Energy'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.






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	    /For further information: Investors Contact: Ian Barnett, (647) 203-6588;
Bill Trenaman, (604) 688-8323; Media Contact: Bob Williamson, (604) 331-9880;
Website: www.ivanhoeenergy.com/