UTS completes transaction for further $750 million for Fort Hills Project



    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE
    UNITED STATES/

    TSX Trading Symbol: UTS

    CALGARY, Nov. 26 /CNW/ - UTS Energy Corporation (UTS) today announced
that it has signed the final documentation associated with the transaction
announced September 19, 2007, whereby its current partners, Petro-Canada and
Teck Cominco, will each earn a further five percent working interest in the
Fort Hills Project. Petro-Canada and Teck Cominco will contribute a combined
$750 million on UTS' behalf beyond the original obligation of $2.5 billion. As
a result, UTS is effectively funded up to the first $7.5 billion of Fort Hills
Project expenditures, with a $250 million further contribution by UTS over the
period. Based on the current expenditure profile, the $7.5 billion is expected
to be reached during the fourth quarter of 2009.
    "We are pleased to have completed the latest agreement with our
partners," said Will Roach, President and Chief Executive Officer of UTS. "A
20% working interest in the Fort Hills Project is an appropriate and
meaningful level of participation for UTS. This transaction plus the recent
$275 million equity issue has put into place the financing necessary for the
next two years. It also offers UTS financial flexibility and time to put in
place the remaining funding for Phase 1 of the Fort Hills Project. Moreover,
this transaction and the equity issuance allow UTS the opportunity to
demonstrate the potential value of our assets outside of the Fort Hills
Project, which we are aggressively delineating over the next two drilling
seasons."
    The resulting working interests in the Fort Hills Partnership are
Petro-Canada with 60%, Teck Cominco with 20% and UTS with 20%. The earn-in is 
structured in a manner consistent with the current Fort Hills agreements.

    UTS Energy Corporation is based in Calgary, Alberta. The Company's common
shares (UTS) are traded on the Toronto Stock Exchange.

    FORWARD-LOOKING STATEMENTS: Except for statements of historical fact
relating to the Company, this news release contains certain "forward-looking
statements" within the meaning of applicable securities law. Forward-looking
statements are frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate", "estimate" and other similar
words, or statements that certain events or conditions "may" or "will" occur.
Forward-looking statements such as the references to anticipated capital costs
and sources of funding referenced in this news release are based on the
opinions and estimates of management at the date the statements are made, and
are subject to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from those
anticipated in the forward-looking statements. The Company undertakes no
obligation to update forward-looking statements if circumstances or
management's estimates or opinions should change except as required by law.
The reader is cautioned not to place undue reliance on forward looking
statements.





For further information:

For further information: Dr. William J. F. Roach, President and Chief
Executive Officer, or Wayne I. Bobye, Vice President and Chief Financial
Officer at (403) 538-7030

Organization Profile

UTS ENERGY CORPORATION

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890