E-T ENERGY SIGNS TECHNOLOGY COOPERATION AGREEMENT WITH TOTAL E&P CANADA LTD. AND AGREEMENT FOR CCEMC CONTRIBUTION

CALGARY, April 12 /CNW/ - E-T Energy Ltd. ("E-T Energy") is pleased to announce two milestone events in advancing its electro-thermal ("ET-DSP™") technology for producing heavy oil and bitumen from oil sands.    E-T Energy has entered into an Agreement with Total E&P Canada Ltd. ("Total") for Total to participate in E-T Energy's next two stages of field testing (Step 3 and Step 4) as the Company prepares for its proposed 10,000 bbl/d Phase 1 commercial development at Poplar Creek.

Total will provide financial and technical support over the next two steps of testing. In consideration for Total's participation, the Agreement provides options for future cooperation in the development of the technology including a global licence of the technology for Total as well as a limited working interest in E-T Energy's first commercial development at its Poplar Creek asset. The agreement contains ongoing project milestones and performance criteria.  E-T Energy expects to start production from the current Steps 1 and 2 test patterns before the end of April 2011.  Once this milestone is achieved, Step 3 drilling and connecting will commence shortly thereafter.

Dr. Bruce C.W. McGee, Chief Executive Officer of E-T Energy, said: "We are thrilled to have Total participate with us in our project.  The depth of Total's technical capability and expertise in project development, together with our technology and pilot test experience over the past four years, will accelerate the application of ET-DSP™ in Alberta and globally."

"Working with E-T Energy is an excellent opportunity for Total to help advance innovative extraction methods that continue to build on the development of environmentally sound practices in Canada's oil sands," said Jean-Michel Gires, President and CEO of Total E&P Canada. "We are looking forward to seeing where this new technology can go and how it can be used on a commercial scale."

E-T Energy is also pleased to announce it has signed its agreement with Alberta's Climate Change and Emissions Management (CCEMC) Corporation ("CCEMC") whereby CCEMC will provide up to $6.86 million in co-funding for Step 3 and Step 4 field testing of the ET-DSP™ technology. Dr. McGee added: "We are very pleased to have finalized our agreement with CCEMC and look forward to starting our next field test at Poplar Creek with their support.  With the strong contributions of these two participants, we are further advancing our environmentally advantageous process to produce bitumen from Alberta's oil sands."

"CCEMC is pleased to support field testing for the E-T Energy project," said CCEMC Chair Eric Newell. "This project is one way that CCEMC is advancing clean technology and exploring the impact that technology can have on reducing greenhouse gas emissions in the oil sands."

The details and specifics of the Agreement are strictly confidential.

About E-T Energy Ltd.

E-T Energy is a private, Calgary-based company focused on in situ electro-thermal extraction of bitumen from oil sands through the use of the proprietary, efficient, and environmentally friendly ET-DSP™ process.  E-T Energy is currently field testing ET-DSP™ on its Poplar Creek leases in the Athabasca Oil Sands in Alberta.  The ET-DSP™ process offers several advantages which E-T Energy expects will make it the technology of choice for developing a significant quantity of oil sands resource currently stranded without a suitable extraction method.  These advantages include: an established technology, minimal water use, rapid recovery of affected lands, lower energy use, and substantially reduced greenhouse gas emissions.

E-T Energy's primary focus is on developing its Poplar Creek commercial project on its own leases in Athabasca (10,560 acres), with a secondary focus of pursuing heavy oil and bitumen opportunities on stranded resources in the United States and elsewhere.  To date, E-T Energy has entered into one agreement to source targeted opportunities in the United States through an agreement with ConTherm Management, LLC and intends to seek partners to develop further opportunities in the United States and elsewhere.

About Total Exploration and Production in Canada

Total E&P Canada owns a 50 per cent interest in the Surmont SAGD1 project and operates the Joslyn project with a 38.25 per cent interest. Total E&P Canada also has a 49 per cent interest in the Voyageur Upgrader and 39.2 per cent interest in the Fort Hills Project.

Total E&P Canada has a 50 per cent interest in the Northern Lights Project following the 2008 acquisition of Canada's Synenco Energy.

Total is one of the world's major oil and gas groups, with activities in more than 130 countries. Its 93,000 employees put their expertise to work in every part of the industry - exploration and production of oil and natural gas, refining and marketing, gas & power and trading. Total is working to keep the world supplied with energy, both today and tomorrow. The Group is also a first rank player in chemicals. www.total.com

About CCEMC

The CCEMC is an Alberta-based, not-for-profit organization with a mandate to establish or participate in funding for initiatives that reduce greenhouse gas emissions and support adaptation. The organization has announced funding for more than $98 million in projects that address energy efficiency, renewable energy, greening energy production and carbon capture and storage. The CCEMC invests in discovery, development, and operational deployment of clean technologies. 

Readers are cautioned that this press release contains forward looking information relating to benefits anticipated to be realized from the terms and conditions of the Agreement and statements related to the proposed development plans of the company.  There is a risk that the anticipated benefits may not be realized from the Agreement if various project milestones and performance criteria are not met.  In addition, there is a risk that the development plans proposed by the company will not be completed within the anticipated time or at all.  Although the company believes that the expectations and underlying assumptions reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as the company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.  The forward-looking statements contained in this press release are made as of the date hereof and the company undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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1 Steam Assisted Gravity Drainage


SOURCE E-T Energy Ltd.

For further information:

Media Contacts:

ET- Energy:
Dr. Bruce McGee, CEO, 403-569-5101 or
Rob Pearce, CFO, at 403-569-5112
www.e-tenergy.com

Total E&P Canada:
Elizabeth Cordeau-Chatelain
Manager, Communications
403-537-2354

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E-T Energy Ltd.

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