Beaver Hills Processing GP Inc.

Corrillo Energy LP

Gibson Energy Ltd.

Parkland Income Fund
TSX : PKI.UN

Parkland Income Fund

September 05, 2007 09:00 ET

Beaver Hills to Conduct Feasibility Study for Alberta Condensate Processing Facility

Joint venture project in Strathcona County

CALGARY, ALBERTA--(Marketwire - Sept. 5, 2007) - Beaver Hills Processing GP Inc. today announced that it will conduct a feasibility study for an innovative, $300 million processing facility in Alberta to refine condensate into petroleum products and petrochemical aromatics for the growing western Canadian market.

The joint venture is owned 50 percent by Corrillo Energy LP of Calgary, which in turn is owned by Corrillo Holding LP, the provider of the technology for the facility. The two other participants, each with a 25 percent ownership stake in the venture, are Gibson Energy Ltd. of Calgary and Parkland Income Fund (TSX:PKI.UN) of Red Deer. Gibson is a midstream company with marketing, transportation, distribution and processing operations in Western Canada. Parkland operates an extensive network of branded retail and dealer service stations and a commercial fuels business across western Canada. Beaver Hills will manage the project on behalf of the joint venture.

The proposed facility would have a capacity of 36,500 barrels per day and would be located near existing distribution infrastructure in the County of Strathcona, east of Edmonton. Parkland will be the exclusive distributor of the gasoline and diesel fuel produced from the project, while Gibson will supply and market all condensate feedstock and sales volume. The feasibility study is part of the project's $8 million first phase, which also includes preliminary engineering, the finalization of product agreements and project financing. The first phase is scheduled for completion in mid-2008 and the facility is slated to commence commercial production in 2010, subject to positive results from the first phase and regulatory approval.

According to Beaver Hills President Rod Evans, "The facility would process condensates using advanced but proven technology, including an innovative sequencing of conventional conversion processes that maximizes the volume of high-value refined products and co-products while minimizing capital, energy and operating costs."

Terry Gomke, President and CEO of Gibson Energy Ltd., noted that the facility will be on Gibson land adjacent to its existing operations in Edmonton. "This new venture will broaden Gibson's strategic direction and complement our marketing, terminal and transportation operations in the Edmonton Area," he said.

Commenting on the project, Parkland President and CEO, Mike Chorlton said, "Beaver Hills is an innovative way for Parkland to enhance its long-term supply of gasoline and diesel fuel to better serve our customer base across Western Canada."

About Corrillo Energy

Corrillo Holding LP, parent of Corrillo Energy LP, is both a technology provider and developer of projects using this innovative technology. Corrillo's major investor is ARC Financial Corp., a Calgary based, energy-focused private equity firm. ARC manages five funds representing $1.9 billion of committed capital.

About Gibson Energy

Gibson Energy Ltd. develops, implements and supports midstream solutions for the oil and gas industry. Setting them apart from other midstream providers is the scope of their modern infrastructure (terminals, pipelines and truck transportation units) and their ability to deliver technologically-advanced solutions to meet business needs. Other offerings provided through two affiliates, Canwest Propane and Moose Jaw Refinery, include wholesale and retail propane distribution and road asphalt, roofing flux and wellsite fluid product manufacturing. For more information, visit www.gibsons.com. Gibson Energy Ltd. is a subsidiary of London-based Hunting PLC (HTG:LSE), an international oil services company providing support solutions to the world's largest oil and gas companies.

About Parkland

Parkland Income Fund operates retail and wholesale fuels and convenience store businesses under its Fas Gas Plus, Fas Gas, Race Trac Fuels and Short Stop Food Stores brands and through independent branded dealers, and transports fuel through its Petrohaul division. With approximately 550 locations, Parkland has developed a strong market niche in western and northern Canadian non-urban markets. Through Neufeld and Joy the Fund markets propane, gasoline, diesel, lubricants, industrial fluids, agricultural inputs and delivery services to commercial and industrial customers in northern Alberta, northeastern British Columbia and the Northwest Territories. Through United Petroleum the Fund markets wholesale and commercial fuels and lubricants throughout southern British Columbia. To maximize value for its unitholders, the Fund is focused on the continuous refinement of its retail portfolio, increased revenue diversification through growth in non-fuel revenues and active supply chain management. Parkland operates the Bowden refinery near Red Deer, Alberta producing drilling fluids on a contract basis. The Fund's units trade on the Toronto Stock Exchange (TSX) under the symbol PKI.UN. For more information, visit www.parkland.ca.

Disclaimer

Certain information included herein is forward-looking. Forward-looking statements include, without limitation, statements regarding the future financial position, business strategy, budgets, projected costs, capital expenditures, financial results, taxes and plans and objectives of or involving Beaver Hills. Many of these statements can be identified by looking for words such as "believe", "expects", "expected", "will", "intends", "projects", "projected", "anticipates", "estimates", "continues", or similar words and include but are not limited to, statements regarding the accretive effects of the business. Beaver Hills believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties. Such forward-looking statements necessarily involve known and unknown risks and uncertainties and other factors, which may cause Beaver Hills' actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general economic, market and business conditions; industry capacity; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities including increases in taxes; changes in environmental and other regulations; and other factors, many of which are beyond the control of Beaver Hills. Any forward-looking statements are made as of the date hereof and Beaver Hills and the joint venture owners, including Corrillo Energy LP, Parkland Income Fund and Gibson Energy Ltd., do not undertake any obligation, except as required under applicable law, to publicly update or revise such statements to reflect new information, subsequent or otherwise.

Contact Information

  • Beaver Hills Processing GP Inc.
    Rod Evans
    President
    (403) 290-4703