Unconventional Oil

[kraftdinner]

Post says Petrocan figures $33.4-billion ought to do it


2007-06-29 06:41 MT - In the News

Also In the News (C-TCK) Teck Cominco Ltd
Also In the News (C-UTS) UTS Energy Corp


The Financial Post reports in its Friday edition that as oil prices sailed past a nine-month high of $70 (U.S.) a barrel Thursday, Petro-Canada and its partners pushed forward with Canada's largest oil sands investment yet -- a $33.4-billion oil sands mining venture. The Post's Claudia Cattaneo and John Harding write the group says it said can generate a reasonable return even with $45 (U.S.) oil. The move casts aside uncertainty about the future of the once-beleaguered project, known as Fort Hills. "The No. 1 message we get is that these companies are willing to go ahead with high levels of oilsands spending because they are very bullish about oil prices," said Mike Tims, chairman of Peters & Co. "It's also reflective of how tough it is for oil and gas companies globally to add oil supply." Fort Hills, a partnership between operator Petro-Canada, UTS Energy and Teck Cominco, is proceeding as a massive commitment that will yield 280,000 barrels of synthetic crude oil a day by 2014, even after its backers stepped back six months ago to evaluate its economics. Ron Brenneman, Petrocan's chief executive officer, told analysts in a conference call, "We fully recognize the execution risk with this venture."