Fort Hills Energy Limited Partnership Reaches Agreement With the Government of Alberta on Extending the Fort Hills Project Mine Leases
CALGARY, ALBERTA--(Marketwire - March 20, 2009) - The Fort Hills Energy L. P. ("The Partnership") announced today that it has reached an agreement with the Government of Alberta to extend the term of the Fort Hills oil sands leases, located 90 kilometres north of Fort McMurray, Alberta. In exchange for a commitment to upgrade in Alberta the bitumen produced from the second phase of the Fort Hills Project, the agreement provides for extending the Fort Hills leases until 2019.
"Fort Hills is truly a made-in-Alberta project that we have been working hard to deliver - but the current economic climate has slowed us down," said Neil Camarta, Petro-Canada's senior vice-president of Oil Sands. "We are very pleased that the province of Alberta has agreed to a compromise that gives us the additional time to make this project a reality."
In November 2008, the Partnership announced the deferral of the final investment decision on the mining portion of the Project until a cost estimate consistent with the current market environment can be established. The Sturgeon Upgrader ("Upgrader") portion of the Project was put on hold and a decision on whether to proceed with the Upgrader will be made at a later date.
The Partnership consists of Petro-Canada with a 60% interest, UTS Energy Corporation with a 20% working interest and Teck Cominco Limited with a 20% interest, with Petro-Canada Oil Sands Inc., a wholly owned subsidiary of Petro-Canada, as the contract operator for the Project.
Petro-Canada is one of Canada's largest oil and gas companies, operating in both the upstream and downstream sectors of the industry in Canada and internationally. Its common shares trade on the Toronto Stock Exchange (TSX) under the symbol PCA and on the New York Stock Exchange (NYSE) under the symbol PCZ.
UTS Energy Corporation is focused on growing and developing oil sands assets. The company was instrumental in re-establishing the Fort Hills Oil Sands Project and is the principal founder of the Fort Hills Energy Partnership. Based in Calgary, Alberta, the company's common shares are traded on the TSX under the symbol UTS.
Teck Cominco Limited is a diversified mining company, headquartered in Vancouver, Canada. Its shares are listed on the TSX under the symbols TCK.A and TCK.B and on the NYSE under the symbol TCK. The company is a world leader in the production of zinc and metallurgical coal and is also a significant producer of copper, gold, indium and other specialty metals. Further information can be found at www.teck.com.
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We caution readers that this list of important factors affecting forward-looking information is not exhaustive. Furthermore, the forward-looking information in this release is made as of the date of this release and, except as required by applicable laws, Petro-Canada, Teck and UTS do not intend to update it publicly or revise it. This cautionary statement expressly qualifies the forward-looking information in this release.
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