Fort Hills Project To Build Upgrader in Sturgeon County, AB
Edmonton Area Ideal for Proximity to Markets, Workforce Needs
CALGARY, ALBERTA--(CCNMatthews - Jan. 26, 2006) - Petro-Canada (TSX:PCA) (NYSE:PCZ) - Fort Hills Energy Corporation today announced plans to build its oil sands upgrading facility in Sturgeon County, about 40 kilometres northeast of Edmonton, Alberta. The upgrading complex will be built on approximately 1,800 hectares of land that Fort Hills Energy Corp. has secured in an area zoned for heavy industrial development.
"Sturgeon County is the ideal place to build the upgrader," said Brant Sangster, Senior Vice-President of Oil Sands for Petro-Canada, which operates Fort Hills with a 55-per-cent stake. "It's an established transportation and infrastructure hub, central to major markets and on the doorstep of a significant workforce. We've worked closely with County officials and, through our land agent, the landowners to forge a collaborative relationship, and that will continue as we proceed with this exciting project."
Fort Hills Energy Partnership comprises Petro-Canada with 55 per cent working interest (Operator), UTS Energy with 30 per cent working interest and Teck Cominco with 15 per cent working interest.
The upgrader will process bitumen from the Fort Hills oil sands mine, 90 kilometres north of Fort McMurray, into light synthetic crude oil ready for refining into consumer products such as gasoline and diesel. The Fort Hills partnership is committed to retaining maximum value from the oil sands so all Albertans can benefit from this world-class resource.
Fort Hills Energy Corp. will seek regulatory approval for the upgrader late this year or early in 2007 pending further consultation and planning. The mine portion of the project is approved for up to 190,000 barrels per day of bitumen production with a resource of 2.8 billion barrels. Start-up is planned for the end of the decade. A preliminary cost estimate will be announced later this year when the project scope and development plan is finalized with the Design Basis Memorandum (DBM).
Petro-Canada is one of Canada's largest oil and gas companies, operating in both the upstream and the downstream sectors of the industry in Canada and internationally. Its common shares trade on the TSX under the symbol PCA and on the New York Stock Exchange under the symbol PCZ.
UTS Energy Corporation is focused on growing and developing oil sands assets, with a market cap of $2.5 billion. 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 (UTS) are traded on the Toronto Stock Exchange.
Teck Cominco is a diversified mining company, headquartered in Vancouver, Canada with assets totaling approximately $8 billion. Shares are listed on the Toronto Stock Exchange under the symbols TEK.MV.A and TEK.SV.B. The company is a world leader in the production of zinc and metallurgical coal and is also a significant producer of copper, gold and specialty metals.
For more information please contact:For UTS Energy:
Dr. William J.F. Roach
President and Chief Executive Officer
Wayne I. Bobye
Vice President and Chief Financial Officer
Media & general inquiries:
Investor and analyst inquiries:
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