Fort Hills Energy L.P.

Fort Hills Energy L.P.
Petro-Canada
NYSE : PCZ
TSX : PCA

Petro-Canada
UTS Energy Corporation
TSX : UTS

UTS Energy Corporation
Teck Cominco Limited
TSX : TCK.A
TSX : TCK.B
NYSE : TCK

Teck Cominco Limited

September 25, 2007 12:00 ET

Fort Hills Energy L.P.: Environmental Win-Win for the Sturgeon Upgrader

CALGARY, ALBERTA--(Marketwire - Sept. 25, 2007) - Fort Hills Energy L.P. is pleased to announce that it has entered into a Memorandum of Agreement with Sturgeon County and the Alberta Capital Region Wastewater Commission (ACRWC) to use treated wastewater from the ACRWC as industrial process water at the Fort Hills Sturgeon Upgrader.

The proposed Sturgeon Upgrader will be located 40 kilometres northeast of Edmonton and is being built to process bitumen from the Fort Hills Oil Sands mine located near Fort McMurray into synthetic crude oil. Phase 1 upgrader production is expected to be 140,000 barrels per day. Regulatory approval is anticipated in 2008 with upgrading operations to begin in 2012.

A feasibility study on the project is complete and detailed engineering has begun. When the wastewater project is fully up and running, it will be expected to meet all of the Sturgeon Upgrader's industrial water needs. This is an environmental home run for the Fort Hills partnership. Unlike many industrial processes, it is expected that the Upgrader site will run fully on wastewater and - in a full circle cycle - send the Upgrader's wastewater back to the ACRWC for further treatment and redistribution.

"Instead of taking fresh water from the North Saskatchewan River for the Sturgeon Upgrader - we plan to use recycled water," said Neil Camarta, Petro-Canada's Senior Vice-President of Oil Sands. "This is a great example of industry and government working together to come up with a win-win solution - for the Fort Hills Project, for the Water Commission, for the County and, especially, for the environment. It's not just good business - it's simply the right thing to do."

This new project expands on experience and learnings gained at the Gold Bar Wastewater Treatment Facility project where Petro-Canada, the City of Edmonton and Strathcona County provide treated wastewater to Petro-Canada's Edmonton Refinery.

Fort Hills Energy L.P. is a limited partnership comprised of Petro-Canada, Teck Cominco Limited, UTS Energy Corporation and the Fort Hills Energy Corporation as the General Partner. Pursuant to an MOA executed on September 19, 2007 the ownership of Fort Hills (when not taking into account the relatively small interest of the General Partner) will be Petro-Canada with a 60% working interest, UTS Energy Corporation with a 20% working interest and Teck Cominco Limited with a 20% working interest. Petro-Canada Oil Sands Inc., a wholly owned subsidiary of Petro-Canada, is 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 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 capitalization of approximately $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 are traded on the Toronto Stock Exchange under the symbol UTS.

Teck Cominco Limited is a diversified mining company, headquartered in Vancouver, Canada. Its shares are listed on the Toronto Stock Exchange under the symbols TCK.A and TCK.B and on the New York Stock Exchange 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.teckcominco.com.

Legal Notice - Forward-Looking Information

This release contains forward-looking information. You can usually identify this information by such words as "plan," "anticipate," "forecast," "believe," "target," "intend," "expect," "estimate," "budget" or other similar wording suggesting future outcomes or statements about an outlook. Below are examples of references to forward-looking information:

  • nature and scope of actions by stakeholders and/or the general public
  • project development and expansion schedules and results
  • business strategies and goals (including whether a project will be sanctioned)
  • international political events
  • construction and repair activities
  • future regulatory approvals
  • future oil and gas production levels and the sources of their growth
  • actions by governmental authorities (including changes in taxes, royalty rates and resource-use strategies)

Such forward-looking information is subject to known and unknown risks and uncertainties. Other factors may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such information. Such factors include, but are not limited to:

  • industry capacity
  • the effects of weather and climate conditions
  • imprecise reserves estimates of recoverable quantities of oil from resource plays, and other sources not currently classified as reserves
  • the results of exploration and development drilling, and related activities
  • the ability of suppliers to meet commitments
  • decisions or approvals from administrative tribunals
  • risks attendant with international domestic oil and gas operations
  • expected rates of return
  • general economic, market and business conditions
  • competitive actions by other companies
  • fluctuations in oil and natural gas prices and supplies
  • refining and marketing margins
  • fluctuations in interest rates and foreign currency exchange rates
  • changes in environmental and other regulations

Many of these and other similar factors are beyond the control of Petro-Canada. Petro-Canada discusses these factors in greater detail in filings with the Canadian provincial securities commissions and the United States Securities and Exchange Commission.

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 does not update it publicly or revise it. This cautionary statement expressly qualifies the forward-looking information in this release.

Contact Information

  • Media and general inquiries:
    Peter Symons, Corporate Communications
    Petro-Canada (Calgary)
    (403) 296-4270
    or
    Investor and analyst inquiries:
    Ken Hall, Investor Relations
    Petro-Canada (Calgary)
    (403) 296-7859
    Website: www.petro-canada.ca