UTS Energy Corporation is creating shareholder value from the Fort Hills oil sands project. Located in the Athabasca oil sands region approximately 90 kilometres north of Fort McMurray, Alberta, the Fort Hills Project is one of the last major undeveloped oil sands mining resources. Regulatory approval is in place for the production of up to 190,000 barrels per day of bitumen. The resource is well defined with a 2.8-billion-barrel mine plan and attractive development options.

Company overview

UTS Energy is delivering shareholder value by developing oil sands assets, principally the Fort Hills project in which we owned 100% working interest (WI), by acquiring 78% WI from Koch Industries in July 2004 through to March 2005, when we farmed out 60% WI and operatorship to Petro-Canada. In September 2005, Teck Cominco acquired interests from both Petro-Canada and UTS resulting in a three-way partnership: UTS retains 30%, Petro-Canada holds 55% and operatorship and Teck Cominco has 15%. As the original 100% owner of the project, UTS was able to leverage its interests into favourable financing terms, maximizing the value impact on UTS with manageable capital requirements.

The UTS Energy team (now numbering more than 20), are working exclusively on the delivery of value:

Regulatory approval for production levels up to 190,000 bbls/day is complete and a 2005 development plan is approved.

A 30% WI of any upgrader expansion capacity over and above what is eventually required for the complete development of the Fort Hills project. This non-dedicated upgrader capacity will enable UTS Energy to pursue growth opportunities by recovering “stranded bitumen assets”.

A 100% WI in Lease 14 comprising 7,067 acres on the west side of the Athabasca River, directly across from the Fort Hills leases, and sandwiched between the Shell operated Leases 9 and 17.

UTS Energy Corporation is based in Calgary Alberta. The Company’s common shares (UTS) are traded on the Toronto Stock Exchange.

Source: UTS Energy Corporation, http://www.uts.ca;