2010-01-14-2009-11-18-2009-11-30

Merged Asian subsidiary with company with Mongolian assets.

Sunwing Energy Ltd., a subsidiary of Ivanhoe Energy Inc., Vancouver, (Nasdaq: IVAN; Toronto: IE) has completed its previously announced merger with privately held, Alberta-based PanAsian Petroleum Inc. in an all-stock deal. Ivanhoe issued 2.68 million common shares, worth approximately $7.5 million, in exchange for all of the issued and outstanding common shares of PanAsian. PanAsian's main asset is a production-sharing contract held through a subsidiary, PanAsian Energy Ltd., with the Petroleum Authority of Mongolia. The contract provides PanAsian with the exclusive right to explore, develop and produce within Block XVI in Mongolia's Nyalga Basin. The Trans-Mongolian Railway, which links railway networks and markets in Russia to the north and China to the south, runs through the western end of the block. The target on Block XVI is light oil, which Ivanhoe says is consistent with discoveries by Petrochina and Sinopec in Mongolia and other similar discoveries in China's adjacent Inner Mongolia region. The block contains four sub-basins and is approximately 60 miles southeast of the capital, Ulaanbaatar. Ivanhoe intends to combine PanAsian's Mongolian interests with Sunwing, which is considering listing on a major Asian stock exchange. PanAsian's corporate structure is not affected by the merger, and the company continues to hold the Block XVI production-sharing contract. Ivanhoe Energy co-chairman A. Robert Abboud says, "This is an exceptional opportunity for Ivanhoe and Sunwing. Mongolia's vast sedimentary basins have been significantly underexplored and Block XVI, in particular, has been identified as offering highly prospective development potential." "Mongolia represents ideal growth potential for Sunwing Energy, whose Asian capabilities constitute a core competency that Ivanhoe Energy intends to build on to develop a major, Asia-focused oil and gas business with the resources and support to secure a public-market listing on a major Asian stock exchange. This is consistent with our declared policy of establishing self-financing regional subsidiaries and, when appropriate, encouraging these entities to seek independent public-market listings."