ALBERTA - TECK COMINCO of Vancouver and UTS ENERGY of Calgary have struck a deal giving Teck Cominco a 50% interest in Lease 14 for a price based on a value of $1.00/bbl of recoverable bitumen and an assumed resource for 100% of Lease 14 of approximately 400 million bbl. The purchase price is subject to adjustment based on an independent resource estimate for Lease 14, expected to be completed in the fourth quarter, to a maximum of $250 million or a minimum of $150 million.
Lease 14 is located in the Athabasca oil sands area and comprises approximately 2,858 ha on the west side of the Athabasca River, and across from the northern boundary of the Fort Hills oil sands project. It is approximately 20 km north of Syncrudes Aurora North mine and a similar distance north of Canadian Natural Resources Ltd.s Horizon project. Lease 14 is situated between Shell Canadas oil sands leases 9 and 17, which are at the southern end of the proposed Pierre River mine. Apart from Lease 14, Teck Cominco and UTS jointly own, on a 50:50 basis, oils sands leases in the Athabasca region covering approximately 104,500 ha.
A detailed look at the Fort Hills project is available at www.Petro-Canada.ca in the About Petro-Canada section.