Canadian Oil Sands provides update to December 5th Coker 8-3 incident

    Units Listed - Symbol: COS.UN
    Toronto Stock Exchange

    CALGARY, Dec. 7 /CNW/ - (TSX - COS.UN) - Canadian Oil Sands Trust (the
"Trust" or "Canadian Oil Sands" or "we") today provided an update regarding
the fire on the morning of December 5th at the Syncrude oil sands plant. The
fire occurred in the environmental section of Coker 8-3 in an area called the
electro-static precipitators ("ESP"). ESPs are used to knock out fine dust
particles from the coker flue gas. The fire was extinguished in the early
hours of December 5th. There were no injuries and the fire damage was limited
to the ESP section of the unit.
    Coker 8-3 continued to operate at reduced rates while investigations into
the cause and required repairs were conducted. Safe operation of the coker
unit was facilitated by bypassing the damaged ESP unit; however, provincial
regulations limit the amount of time that the flue gas stream can remain in
this bypass mode. Syncrude now believes that the length of time that will be
required to make repairs to the ESP unit will be longer than the allowed
bypass time. Consequently, Syncrude has decided to shutdown Coker 8-3 for
approximately two to four weeks to make the necessary repairs. These repair
procedures are now underway. Production from the rest of the facility is not
expected to be affected.
    On October 31, 2007 the Trust provided guidance of 111 million barrels
for annual 2007 Syncrude production with a range of 108 to 114 million
barrels. We expect the shutdown of Coker 8-3 will result in 2007 production
still falling within the range of 110 to 111 million barrels. Any potential
impact of this incident on 2008 production and costs will be addressed later
in December when the Trust announces its 2008 budget.

    Located near Fort McMurray, Alberta, Syncrude Canada operates large
oil-sands mines and an upgrading facility that produces a light, sweet crude
oil on behalf of its joint venture owners, which include Canadian Oil Sands
Limited, ConocoPhillips Oilsands Partnership II, Imperial Oil Resources, Mocal
Energy Limited, Murphy Oil Company Ltd., Nexen Oil Sands Partnership, and
Petro-Canada Oil and Gas.
    Canadian Oil Sands provides a pure investment opportunity in the Syncrude
Project through its 36.74 per cent working interest. The Trust is an
open-ended investment trust managed by Canadian Oil Sands Limited and has
approximately 479.3 million units outstanding, trading on the Toronto Stock
Exchange under the symbol COS.UN.

    Advisory: in the interest of providing Canadian Oil Sands Trust
("Canadian Oil Sands" or the "Trust") unitholders and potential investors with
information regarding the Trust, including management's assessment of the
extent of damage or impact of the fire on Syncrude's operations and any impact
on the Trust. By their nature, forward-looking statements involve numerous
assumptions, known and unknown risks and uncertainties, both general and
specific, that contribute to the possibility that the predictions, forecasts,
projections and other forward-looking statements will not occur. Although the
Trust believes that the expectations represented by such forward-looking
statements are reasonable, there can be no assurance that such expectations
will prove to be correct. Some of the risks and other factors which could
cause results to differ materially from those expressed in the forward-looking
statements contained in this release include, but are not limited to: the
expected time to complete repairs to the ESP unit and consequent duration of
Coker 8-3 shutdown, the expected production in 2007, issues relating to the
operation of complex operations such as upgrading of oil sands; labour and
cost pressures in the oil sands industry and in the Fort McMurray area in
particular; the regulatory changes that impact oil and gas operations; general
economic, business and market conditions; commodity prices; and such other
risks and uncertainties described from time to time in the reports and filings
made with securities regulatory authorities by the Trust. You are cautioned
that the foregoing list of important factors is not exhaustive. Furthermore,
the forward-looking statements contained in this release are made as of the
date of this release, and the Trust does not undertake any obligation to
update publicly or to revise any of the included forward-looking statements,
whether as a result of new information, future events or otherwise. The
forward-looking statements contained in this release are expressly qualified
by this cautionary statement. The information was approved by management on
December 6, 2007 and circumstances after this date may change the outcomes or
results achieved.

For further information:

For further information: Canadian Oil Sands Limited, Trevor Roberts,
Chief Operations Officer, (403) 218-6214; Ryan Kubik, Chief Financial Officer,
(403) 218-6202,; Web site:

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