UTS Energy advises of Fort Hills Project update announcement



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

    TSX Trading Symbol: UTS
    

    CALGARY, Sept. 17 /CNW/ - UTS Energy Corporation ("UTS") today advises of
the Fort Hills Energy Limited Partnership's announcement which released
updated cost information for the Fort Hills Project. The full text of that
announcement is set out below.
    "The increased cost estimate for the Fort Hills Project is of great
concern to UTS," said Dr. William Roach, President and Chief Executive Officer
of UTS. "However, the positive outcome is that the Partnership is working
together constructively to examine all options available to the Project,
including re-phasing with UTS' specific objective to reduce the capital
exposure prior to first oil. We are confident that this will result in a
better solution for the UTS shareholder."
    UTS will be hosting a conference call later today, Wednesday, September
17, 2008 at 9:00 am EDT / 7:00 am MDT, regarding the above information.
    The conference call will consist of formal remarks followed by a question
and answer session. Participants will be: Will Roach, President and Chief
Executive Officer, Wayne Bobye, Vice President and Chief Financial Officer,
Martin Sandell, Vice President, Engineering and Jina Abells Morissette,
Corporate Secretary.
    An on-line slide presentation will accompany the presentation.

    
    Live call participation:    416-644-3421 or 800-733-7560
    Recorded call playback:     877-289-8525 passcode: 21283742 (followed by
                                the number sign) (until October 8, 2008)
    Webcast (and slides):       www.uts.ca or
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2421540

    The replay of the Webcast is available for 90 days at http://www.uts.ca


               Fort Hills Energy Limited Partnership Releases
             Updated Cost Information For The Fort Hills Project
    

    Calgary, AB - The Fort Hills Energy Limited Partnership said today that
the preliminary results from the Front-End Engineering and Design (FEED) work
suggest that estimated costs for its Fort Hills Project (Project) have risen
considerably. The Project, as currently conceived, consists of an integrated
oil sands mine and bitumen extraction plant 90 kilometres north of Fort
McMurray, Alberta and an upgrader in Sturgeon County northeast of Edmonton,
Alberta.
    The Fort Hills Partners remain fully committed to the Project and are
assessing these preliminary estimates and a range of options to reduce or
defer capital costs.
    While both the preliminary cost data and the Project scope are still
under review, initial indications suggest that the estimated capital costs for
the Project, as currently conceived, have increased in the range of 50% from
those announced when the Partners approved the Design Basis Memorandum for the
Project in June 2007.
    The major increases are costs associated with construction materials,
labour, project management and engineering.
    The Fort Hills Partners are discussing options for development of the
Project, including the phasing of various aspects of the Project. Selected
options are expected to be reflected in the final FEED outcome. Once FEED work
is complete, Fort Hills will develop a definitive cost estimate, which will be
the basis for the final investment decision planned by the Fort Hills Partners
for the fourth quarter of 2008.
    Proceeding with the Fort Hills Project is also subject to certain
regulatory approvals being received. Fort Hills is working with the regulators
and various stakeholders to obtain the necessary approvals.
    Fort Hills Energy L.P. consists of Petro-Canada with a 60% working
interest, UTS Energy Corporation with a 20% working interest and Teck Cominco
Limited with a 20% working interest, with Petro-Canada Oil Sands Inc., a
wholly owned subsidiary of Petro-Canada, as 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 (TSX)
under the symbol PCA and on the New York Stock Exchange (NYSE) under the
symbol PCZ.

    UTS Energy Corporation is focused on growing and developing oil sands
assets. 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 TSX under the symbol UTS.

    Teck Cominco Limited is a diversified mining company, headquartered in
Vancouver, Canada. Its shares are listed on the TSX under the symbols TCK.A
and TCK.B and on the NYSE 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:

    
    -   future capital, exploration and other costs and expenditures
    -   project development and expansion schedules and results
    -   business strategies and goals (including whether a project will be
        sanctioned)
    -   pre-production and operating costs
    -   construction and repair activities
    -   future regulatory approvals
    -   future oil and gas production levels and the sources of their growth
    -   future results of exploration activities and dates by which certain
        areas may be developed or may come on-stream

    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
    -   actions by governmental authorities (including changes in taxes,
        royalty rates and resource-use strategies)
    -   changes in environmental and other regulations
    -   international political events
    -   nature and scope of actions by stakeholders and/or the general public
    

    Many of these and other similar factors are beyond the control of
Petro-Canada, Teck and UTS. Petro-Canada, Teck and UTS discuss these factors
and other risks in greater detail in their respective annual information forms
and other 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, Teck and UTS
do not intend to update it publicly or revise it. This cautionary statement
expressly qualifies the forward-looking information in this release.





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 and general inquiries: Peter Symons,
Corporate Communications, Petro-Canada (Calgary), Tel: (403) 296-4270;
Investor and analyst inquiries: Ken Hall, Investor Relations, Petro-Canada
(Calgary), Tel: (403) 296-7859

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