/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE
TSX Trading Symbol: UTS
CALGARY, June 28 /CNW/ - UTS Energy Corporation ("UTS") today advises of
the Fort Hills Project announcement by Petro-Canada, on behalf of the Fort
Hills Energy L.P., which announced the formal design basis for the Fort Hills
Project. The full text of Petro-Canada's news release is set out below.
"Petro-Canada's announcement today was very good news," said William
Roach, President and Chief Executive Officer of UTS. "The Fort Hills
Partnership, with Petro-Canada as Operator, has defined the right balance
between economies of scale and risk mitigation, setting the stage for the
Project to proceed with the mine coming on-stream by the end of 2011 and the
upgrader by mid-2012."
Design Basis Announced for Fort Hills Project
Calgary, Alberta, Canada - Petro-Canada, on behalf of the Fort Hills
Energy L.P., today announced the formal design basis for its Fort Hills
Project - an integrated oil sands mining project that includes a mine and
bitumen extraction plant 90 kilometres north of Fort McMurray, Alberta and an
upgrader in Sturgeon County northeast of Edmonton, Alberta. This milestone
marks the partnership's commitment to proceed with the front-end engineering
and design (FEED) stage. The FEED process will take about 12 months to
complete, producing a definitive cost estimate and the basis upon which the
final go-ahead decision on the Project will be made.
The first phase of the Project is planned to produce 140,000 barrels per
day (b/d) of synthetic crude oil. Associated bitumen production is expected to
be about 160,000 b/d. First bitumen production is expected to begin in the
fourth quarter of 2011 with first synthetic crude oil production from the
Sturgeon Upgrader anticipated in the second quarter of 2012. The preliminary
capital cost estimate for the mine and upgrading components of the first phase
of the Fort Hills Project is $14.1 billion.
"This marks a key milestone and a big step forward on the Fort Hills
Project," said Ron Brenneman, Petro-Canada's Chief Executive Officer and
President. "The size, staging and technology chosen should provide solid
financial returns while minimizing execution risk. This step puts us on a path
for a final go-ahead project decision in the third quarter of 2008, following
the anticipated regulatory approval of the Sturgeon Upgrader."
The Fort Hills Project is expected to produce up to a total of 280,000
b/d of synthetic crude oil by 2015, once all phases are complete.
Fort Hills Energy L.P. consists of Petro-Canada with a 55% working
interest, UTS Energy Corporation with a 30% working interest and Teck Cominco
Limited with a 15% working interest, with Petro-Canada Oil Sands Inc., a
wholly owned subsidiary of Petro-Canada, as the contract operator for the
The Fort Hills mine received regulatory approval in 2002 from Alberta
Environment and the Alberta Energy and Utilities Board. The Fort Hills
partnership filed the commercial application and environmental impact
assessment for the Sturgeon Upgrader with provincial regulators in December
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
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 resource estimates
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: For UTS: Dr. William J.F. Roach, President and
Chief Executive Officer, or Wayne I. Bobye, Vice President and Chief Financial
Officer, Tel: (403) 538-7030; Media & general inquiries: Chris Dawson,
Corporate Communications, Petro-Canada (Calgary), Tel: (403) 296-4270;
Investor and analyst inquiries: Ken Hall, Investor Relations, Petro-Canada
(Calgary), Tel: (403) 296-7859