The Fort Hills Energy L. P. ("The Partnership") announced
Monday that it will defer the final investment decision on the mining portion
of the Project ("Project") until a cost estimate consistent with the current
market environment can be established. The Partnership now anticipates making
a final investment decision in 2009. The Sturgeon Upgrader ("Upgrader")
portion of the Project will be put on hold and a decision on whether to
proceed with the Upgrader will be made at a later date.
The Partnership is deferring the Upgrader at this time to reduce overall
cost exposure on the Project and will now focus efforts on developing the mine
and bitumen production facilities. The Partnership will use the extra time to
evaluate opportunities for cost reductions, execution efficiencies and the
overall project schedule for bitumen production. The Partnership remains
committed to retention of the leases and is holding discussions with the
Government of Alberta on the current lease term.
The Partnership consists of Petro-Canada with a 60% interest, UTS Energy
Corporation with a 20% working interest and Teck Cominco Limited with a 20%
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
UTS Energy Corp. 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.