Obed, Alberta Gas Project Update

September 2, 2008, Ivory Energy Inc. (IV: TSX.V) announces that it has participated in drilling and casing a significant successful development gas well at Obed, Alberta.

The news release of August 7, 2008 described the company’s interest in the discovery gas well and made reference to this offsetting development well. Reservoir pressure in this development gas well is estimated to be similar to the reservoir pressure in the discovery gas well by virtue of the mud weight required to control flow. Ivory will provide further updates as soon as production testing is complete and other information becomes available for this development gas well. Ivory has a working interest of 14% in the discovery gas well and 20% in this development gas well.

The pipeline and equipping of the discovery gas well has been completed and the well is expected to be placed on production today. This development gas well was drilled from the same surface location as the discovery gas well, therefore surface equipment and the pipeline for this discovery gas well will be utilized to commence production early during the fourth quarter 2008.

In other news, the infill drilling program at the company’s Silverdale, Saskatchewan property is underway. Ivory expects to have the first five wells on production during September, 2008.

For further information, please contact:

Ian E. Gallie, President & Chief Executive Officer
(403) 374-5000 or [email protected]
Website: www.ivoryenergy.com