UTS Energy Corporation

UTS Energy Corporation

June 27, 2005 07:00 ET

UTS and Petro-Canada Complete Transaction

CALGARY, ALBERTA--(CCNMatthews - June 27, 2005) - UTS Energy Corporation (TSX:UTS) ("UTS Energy" or the "Corporation") today announced that it has entered into a formal partnership agreement and unanimous shareholders agreement with Petro-Canada and received the necessary approvals thereby closing the transaction previously announced. Pursuant to these agreements, and a subscription agreement dated April 22, 2005, Petro-Canada and UTS Energy have agreed to jointly fund the first C$1 billion to develop the Fort Hills oil sands project. Under these agreements, UTS retains 40% of the project while Petro-Canada acquires a 60% interest in the project.

Fort Hills is located in Alberta's Athabasca oil sands region approximately 90 kilometres north of Fort McMurray, contiguous to the Syncrude North Aurora Mine and Shell's Muskeg River Mine. The Fort Hills oil sands project area encompasses 46,000 contiguous acres and comprises Oil Sands Leases 5, 8 and 52. Fort Hills contains 4.7 billion barrels of bitumen in place, of which 2.8 billion barrels are recoverable under the mine plan. Supporting this resource estimate is a database comprising very high quality drilling and related analytical information derived from some 1027 boreholes.

UTS Energy is based in Calgary and its common shares are listed on The Toronto Stock Exchange, where they trade under the symbol UTS.

Contact Information

  • UTS Energy
    Dr. William J. F. Roach
    President and Chief Executive Officer
    (403) 538-7030
    UTS Energy
    C. W. Leigh Cassidy
    Vice President and Chief Financial Officer
    (403) 538-7030