OIL SANDS: Chinese invest $1.9 billion in AOSC

CALGARY — The Chinese energy company, PetroChina, is investing $1.9 billion to acquire a 60% working interest in two oil sands projects owned by Athabasca Oil Sands Corp (AOSC). The MacKay River and Dover oil sands leases are believed to contain about 5.0 billion bbl of oil.

"Oil sands projects are very capital-intensive long-term investments and difficult to fully finance in the traditional equity market,” said Bill Gallacher, chairman of AOSC. “AOSC therefore decided to look for joint venture partners, and these strategic joint venture arrangements with PetroChina, one of the world's largest energy companies, can ensure that the MacKay River and Dover projects will be developed in timely manner, which is excellent news for Alberta and the rest of Canada.”

AOSC has filed regulatory applications for approval of two in situ pilot plants on its leases. A regulatory application for the first 35,000 bbl/day phase of the MacKay River commercial project will be filed by the end of this year.

More information about AOSC is available at www.AOSC.com.