Ivory Energy Inc.

Ivory Energy Inc.

October 16, 2006 09:00 ET

Ivory Energy Inc.: Holburn Wells Update

CALGARY, ALBERTA--(CCNMatthews - Oct. 16, 2006) - Ivory Energy Inc. (TSX VENTURE:IV) is pleased to announce that the drilling rig has moved off the surface location of the potential oil and gas well in the Holburn area of central Alberta.

The well was drilled to a total depth of 1,451 meters. Well logs and drill stem tests were run prior to casing the well. Well log analysis indicate net pay in the Ellerslie formation and the Ostracod formation. Both formations were drill stem tested and confirmed the net pay by producing petroleum and natural gas. Bottom hole pressures for the Ellerslie were typical of a permeable Ellerslie sand for the area and the Ostracod bottom hole pressures were higher than expected with final shut in pressures of 10,256 KPag and 11,170 KPag respectively. XRD and SEM analysis on the drill cuttings was conducted across both zones in order to help with a more effective completion. The completion program for the two zones has been finalized and once land regulatory approval has been obtained, Ivory will move on to the location a completion service rig to begin testing.

Ivory has a 100% working interest in this well before payout and 80% after payout. In addition, Ivory has a 50% interest in a total of 13 sections of land in the Holburn area.

The other gas well in which Ivory has a 50% interest has been pipelined and pump and rods are being installed to produce the well. Once stabilized gas flows are available these will be reported. This well is completed in the Ellerslie formation and based on the Ellerslie Formation Ivory has 4 potential well locations between this well and the latest well to be completed.

This news release contains certain "forward-looking statements" that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

The TSX Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of this release.

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