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Ivanhoe Energy Signs Master License Agreement With Syntroleum

11 October 2000

Ivanhoe Energy Signs Master License Agreement With Syntroleum

    DOHA, Qatar, Oct. 11 At the Middle East Gas Conference,
Ivanhoe Energy Inc. and Syntroleum Corporation
announced today that Ivanhoe has upgraded its existing
Syntroleum Process(R) volume license to a full master license status.  The
expanded agreement enables Ivanhoe to pursue an unlimited number of
gas-to-liquids (GTL) projects around the world. Ivanhoe Energy becomes the
fourth holder of a master license, after Arco (now BP), Marathon and Texaco.
    "We upgraded our license agreement to enable us to aggressively pursue
large projects around the world that are currently in various stages of
development," said Leon Daniel, Ivanhoe's president and CEO.  "The new master
license better facilitates our strategy to convert stranded gas reserves into
ultra clean transportation fuels, using the Syntroleum GTL process."
    The companies recently announced an agreement for Ivanhoe to invest as a
13% equity partner in Syntroleum's Sweetwater GTL project in Western
Australia, subject to debt financing and satisfaction of various closing
conditions.  The Sweetwater project will be a commercial-scale GTL plant
designed to produce high-quality synthetic lubricants and other specialty
products.
    "We are pleased that Ivanhoe has moved to a full master license status,"
said Mark Agee, Syntroleum's president and chief operating officer.  "Ivanhoe
has emerged as a serious player in GTL project development and a valued
partner in our Sweetwater Project."
    Syntroleum Corporation is the developer of a proprietary process for
converting natural gas into synthetic liquid hydrocarbons, which became
commercially available in 1997.  The process is designed for application in
plant sizes ranging from 2,000 barrels per day to more than 100,000 barrels
per day.  The company, in partnership with others, plans to build specialty
chemical plants using its technology in a number of global locations.  In
addition, Syntroleum licenses its process to oil companies for the manufacture
of fuels.  Current licensees include ARCO (now BP), Enron, Ivanhoe Energy,
Kerr-McGee, Marathon, Repsol-YPF, Texaco and the Commonwealth of Australia.
    Ivanhoe Energy is a unique new company, focusing on three major
strategies:  (1) exploration, primarily for natural gas in the San Joaquin
Basin of California; (2) enhanced oil recovery, principally for national oil
companies; and (3) application of gas-to-liquids technology to stranded gas
reserves, using the proprietary Syntroleum process.  Ivanhoe's shares trade on
the Nasdaq market with the ticker symbol IVAN and the Toronto Exchange with
the symbol IE.
    This document includes forward-looking statements as well as historical
information.  Forward-looking statements include, but are not limited to,
statements relating to GTL project development, the Sweetwater project, the
Syntroleum Process and related technologies and products, GTL plants based on
the Syntroleum Process (including the development of planned plants), the
economic use of such plants and the continued development of the Syntroleum
Process.  When used in this document, the words "anticipate," "believe,"
"estimate," "expect," "intent," "may," "project," "plan" "should," and similar
expressions are intended to be among the statements that identify
forward-looking statements.  Although Syntroleum and Ivanhoe Energy 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 commercial-scale
GTL plants will not achieve the same results as those demonstrated on a
laboratory or pilot basis or that such plants will experience technological
and mechanical problems, the potential that improvements to the Syntroleum
Process currently under development may not be successful, the impact on plant
economics of operating conditions (including energy prices), competition,
intellectual property risks, construction risks, the risks associated with
investments and operations in foreign jurisdictions, the ability to implement
corporate strategies, the ability to obtain financing and other risks
described in the companies' filings with securities commissions.