Value Creation moving forward with first Athabasca oil sands production project, combining in situ recovery and field upgrading



    /NOT FOR DISSEMINATION TO UNITED STATES NEWS AND WIRE SERVICES OR FOR
    DISTRIBUTION IN THE UNITED STATES/

    CALGARY, March 7 /CNW/ - Value Creation Inc. announces the company is
planning its first oil sands production project on its leases in the Athabasca
region of northeast Alberta. The Terre de Grace Project will combine in situ
recovery with the company's proprietary bitumen upgrading technologies. Value
Creation has submitted its Project Disclosure document to the Alberta Energy
and Utility Board and Alberta Environment, and has embarked on stakeholder
consultation. Subject to regulatory approvals, the upstream-upgrading project
is expected to begin production in 2011.
    The Terre de Grace Project is located on a large contiguous block of
leases, covering 290 sections of oil sands resources owned by Value Creation.
The Terre de Grace block is one of several held by Value Creation, which
wholly owns one of the largest oil sands resources held by an independent
Canadian company.
    Value Creation also owns the proprietary upgrading technologies that are
expected to provide the industry's lowest cost upgrading of bitumen to
refinery-ready light crudes. An affiliate of Value Creation, BA Energy Inc. is
constructing a major, merchant bitumen upgrader with an approved capacity of
about 260,000 bbl/d. Located in Strathcona County near Edmonton, the first
phase of the Heartland Upgrader is planned for startup in 2008 and will
upgrade 77,500 bbl/day of bitumen blend.
    Situated in the east-central area of the Terre de Grace block, the first
phase of the Terre de Grace Project (TDG-1) covers about 15 percent of the
block. Based on an independent consultant's calculation and Value Creation's
own estimate, TDG-1 has "exploitable bitumen in place" of 2.45 to 2.77 billion
barrels. Economic recoverable bitumen will depend on reservoir characteristics
and technical cost.
    TDG-1 will be an 80,000 bbl/d upstream-upgrading project, developed in
two 40,000 bbl/day SAGD phases and producing light, refinery-ready crudes. It
represents an innovative, synergistic integration of Value Creation's
proprietary upgrading technologies with thermal bitumen recovery, leading to
exceptional technical cost advantages and higher economic bitumen recovery.
The capital cost of the Project is projected to be in the range of $3.5 to
$4.0 billion (2007 dollars). When the Project is fully implemented, the SAGD
energy requirement will be provided by combustion of by-products, which will
lead to an unusually low operating cost, while maintaining high volume yields
of marketable crudes. The TDG-1 Project is also designed to be very energy
efficient, and hence have lower emissions than conventional approaches.
    Value Creation plans to implement TDG-1 in five separate steps to achieve
early cash flow after step one. A significant portion of the investment cost
is expected to be generated by internal cash flow.
    In the Athabasca region, Value Creation Inc. has identified 10 different
oil sands development prospects on its leased land, each of which can support
a 40,000 bbl/d project. Eight of the sites are in the large Terre de Grace
block, which would offer considerable infrastructure and logistics advantages
for development.
    "Our large wholly-owned oil sands resource base positions Value Creation
to become a major oil sands player," said Dr. Columba Yeung, founder and
chairman of the Value Creation Group. "Our technologies and creativity will
differentiate us as a smart oil sands developer. BA Energy's merchant upgrader
will commercially prove our breakthrough upgrading technologies, and TDG-1
will demonstrate further value enhancement with the creative, synergistic
application of our technologies. This represents another milestone in our
quest to be a pre-eminent, full-value-chain player in oil sands development."

    A member of the Value Creation Group of Companies, Value Creation Inc. is
a private, Canadian company owning extensive oil sands properties in the
Athabasca area as well as proprietary bitumen upgrading technologies. The
company is headquartered in Calgary, Alberta.

    Certain statements contained in this document are "forward-looking
statements" relating to Value Creation's plans and expectations. The
projections, estimates and beliefs contained in such forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause actual results or events to differ materially from those
anticipated in any forward-looking statements. Value Creation believes the
expectations reflected in those forward-looking statements are reasonable;
however, Value Creation cannot provide any assurances that these expectations
will prove to be correct.





For further information:

For further information: For general inquiries: David Tuer, Director,
Advisory Board, Value Creation Inc.; For Environmental and Regulatory affairs:
Tim Robbie; Phone: (403) 539-4500

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VALUE CREATION INC.

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