Petro-Canada Re-Examines Meadow Creek Heavy Crude Oil Prospect

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Petro-Canada Incorporated (TSE:PCA) (NYSE:PCZ) (Calgary Alberta) is currently involved in a winter re-drilling program at its $250 million Meadow Creek crude oil project. Petro-Canada initiated the drilling program to shore up the resource potential and confirm the commercial viability of the proposed 60,000 barrel per day project.

When the current drilling program is completed in mid-2004, Petro-Canada will evaluate the data and determine if the project will continue into the front-end engineering & design phase. The scope of the project also includes a 330 megawatt cogeneration plant utilizing two GE MS7001FA turbines to provide electricity for the plant and export to the grid as well as satisfy the steam needs to the steam assisted gravity drainage (SAGD) project. Located 45 kilometers south of Fort McMurray, Petro-Canada has a seventy-five percent working interest in Meadow Creek with Nexen Incorporated (Calgary Alberta) holding the remaining twenty-five percent.

Petro-Canada is also involved in the early exploration phase of another property in the vicinity, which could potentially produce an additional 60,000 barrels of heavy crude per day. The Lewis property is being evaluated as a SAGD prospect and if commercially feasible would require an investment of up to $300 million to bring into production. All things considered, both the Meadow Creek & Lewis properties could be producing a combined total of 120,000-140,000 barrels per day by 2009.