Ivory Energy Inc.
TSX VENTURE : IV

Ivory Energy Inc.

March 06, 2008 09:00 ET

Ivory Energy Inc.: Saskatchewan Production/Alberta Update

CALGARY, ALBERTA--(Marketwire - March 6, 2008) - Ivory Energy Inc. (TSX VENTURE:IV) announces that February net average sales production was approximately 675 boe/d less than January net average sales of 705 boe/d. This oil production decrease was due to oil wells being shut-in or produced at restricted production levels temporarily because of water disposal constrictions. Ivory is currently installing a pipeline network and water handling facility that will allow the Company to resume production on these shut-in wells.

As mentioned above, Ivory's pipeline installation for the Silverdale water flood expansion project is on-going and will be completed in March at which time the associated oil wells will be optimized and pressure maintenance of the pool will begin. This operation will result in increased oil production, solution gas gathering and sales, and reduced operating cost by eliminating trucking for this area. This will add significantly higher netbacks and increased cash flow.

Further to our November 30, 2007 news release, Ivory participated in an exploration well in west central Alberta as part of Ivory's flow-through commitment. This well reached total depth during January and has been cased as a potential gas well. Ivory is participating in the completion of this gas well which is currently being tested. Ivory has an after payout interest of 20% in this well and has also earned various rights in three adjacent sections of land.

Ivory Energy Inc. is a heavy oil producer in Saskatchewan that is developing its oil properties, cash flow and reserves through low risk re-completions, workovers, infill drilling, and utilizing enhanced oil recovery methods. Ivory has identified 50 possible infill and step-out locations on its Saskatchewan oil properties. The Silverdale oil field, Ivory's flagship property, comprises compact geology, stacked oil reservoir sands, with discovered petroleum resources initially in place of 131 million barrels of oil(1) of which Ivory's net interest is estimated at 41% on average.

(1) Saskatchewan Industry & Resources, Reservoir Annual 2003

Boe or Boe/d are barrels of oil equivalent or barrels of oil equivalent per day. Boes may be misleading, particularly if used in isolation. A Boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. This news release contains statements concerning anticipated development activities on Ivory's properties. Although the Company believes that these forward-looking statements are reasonable, undue reliance should not be placed on them. The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

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

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