Petro-Canada Oil Sands Strategy

Our oil sands strategy is to grow the business profitably through phased and integrated development of this world-class resource. Petro-Canada is strategically positioned to capture full value from Alberta’s oil sands – the largest such deposits in the world.

Petro-Canada Competitive Advantages

We have:

• large lease holdings

• a solid slate of projects

• unique integration with the Edmonton refinery

These offer competitive advantages as we deliver growing production from this long-life asset.

General Oil Sands Information

Oil sands are sand grains surrounded by bitumen, a heavy thick form of crude oil with a molasses-like consistency. Shallow oil sands deposits can be mined from the surface. Deeper deposits require other recovery methods called in situ. Petro-Canada has been involved with oil sands development for more than 25 years. We’re one of a few established companies with both mining and in situ developments.

Petro-Canada Oil Sands Business Interests

• 12% working interest in Syncrude

• the world’s largest oil sands mining and upgrading operation. Syncrude has an estimated remaining reserve life of over 35 years.

• 100% ownership of the MacKay River in situ project. It uses relatively new commercial technology called steam-assisted gravity drainage (SAGD) to produce bitumen deposits too deep to mine from the surface.

• Conversion of Petro-Canada’s Edmonton refinery to process oil sands feedstock exclusively. This major strategic project will take advantage of increasing Western Canada supplies of heavy oil as conventional light oil production declines. The conversion is slated for completion in 2008.

• 55% interest holder and operator of the Fort Hills mining project. We plan to develop an estimated 2.8 billion barrels of bitumen resource (1.7 billion barrels net to Petro-Canada) over a 30- to 40-year period. First oil is expected by decade end.

• An impressive array of potential in situ locations in the Athabasca oil sands region. It’s estimated there are over five billion barrels of bitumen resources on these extensive landholdings. That’s more than the remaining crude oil reserves in Alaska.

Source: Petro-Canada, http://www.petro-canada.ca;