Value Creation Inc. Enters Into Oilsands Development With Bp

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16th March 2010, 09:50am - Views: 1355






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MEDIA RELEASE PR38753


Value Creation Inc. Enters Into Oilsands Development with BP


CALGARY, Mar. 15 /CNW-AsiaNet/ --


    This press release or the information contained herein is not being

issued in or into, and may not be distributed directly or indirectly in or

into, the United States of America or any jurisdiction where to do so would

constitute a violation of the relevant laws of such jurisdiction.


     Value Creation Inc ("VCI"), part of the Value Creation Group, a holder of

significant oilsands properties in Alberta, proprietary upgrading technologies and

owner of BA Energy Inc., announced today that it has entered into a Partnership with

BP Canada to develop one of VCI's large oilsands lease blocks - Terre de Grace

("TDG"), in the Athabasca region.


    BP will be the majority partner and the Operator for this TdG Partnership

("TdGP"), with VCI and BP together providing strategic direction and guidance

through representation on the governing board.


     TdG is a large, contiguous 185,000 acres of high quality oilsands lands

with substantial delineation of the East Graceland area and considerable

further potential in the less-delineated remainder of the leases.


     This transaction provides VCI with a clean, debt-free balance sheet. BP

also will make significant capital contributions to TdGP, with the ultimate

contribution amount dependent on sanctioned recoverable resource after further

exploration and delineation. This assures TdGP with secured financing until

major project commercialization and beyond for the development of the vast TdG

oilsands block.


     "This partnership blends a strong asset, world-class operator, high

calibre talents and market security, besides financial stability" said Dr.

Columba Yeung, Chairman and CEO of VCI.


     VCI retains 100% control over its other significant oilsands leases

(including the large Tristar block, south of Fort McMurray), its Heartland

Upgrader assets ("HUP") and its patented proprietary technologies. These

assets provide VCI with a solid platform to build a full-value-chain oilsands

enterprise.


     With the Partnership and its own developments, VCI now has two parallel

drivers to accelerate resource development and cash flow generation, enhancing

the monetization of its vast resources.


     Both the TdGP and VCI's Tristar resource are expected to use in-situ

steam assisted gravity drainage ("SAGD"), a process where technological

advancement can readily be applied to drive improvement in production

efficiencies, bringing lower emissions. TdGP and VCI are in discussions to

enter into a co-operation agreement for the further development and testing of

VCI's proprietary primary upgrading technology ("ADC(TM)").


     BA Energy, VCI's wholly owned subsidiary, has an approved merchant

upgrader project of about 260,000 bpd capacity. Official government approval

for a 10,000 bpd semi-commercial project at TdG has also been granted. Large

commercial project applications are under consideration by the owners for both

TdG and Tristar.


     BMO Capital Markets and Genuity Capital Markets acted as advisors to VCI.

CIBC World Markets provided advice to VCI's independent directors.


     Note to editors

     ---------------


     -  VCI is a private Canadian company focused on the development of its

        large oilsands resource holdings to become full-value-chain oilsands

        enterprise, leveraging synergistic applications of its proprietary

        upgrading technologies in integrated resource development


     -  BA Energy, a wholly owned subsidiary of VCI, owns a large block of

        prime industrial land (over a thousand acres) in the oil hub of

        Heartland (NE of Edmonton), with major heavy oil pipelines from all 3

        major oilsands regions, and crude pipelines to US markets. Regulatory

        approval for a 260,000 bpd upgrader is already in place.


     -  Accelerated Decontamination Unit ("ADC(TM") is one of VCI's

        proprietary upgrading technologies. The process uses colloidal physics

        phenomena to aggregate and precipitate pure asphaltenes in a low

        pressure and low temperature environment, which results in very low

        energy consumption. Asphaltenes are rapidly and selectively separated

        from heavy residue creating a decontaminated oil ("DCO"), which is

        pumpable with little diluent.


     -  SAGD is a thermal in-situ recovery process using pairs of horizontal

        wells. A horizontal production well is located near the bottom of the

        reservoir and steam is injected into a second horizontal well placed

        above it, heating the bitumen and enabling it to flow.  The bitumen

        and condensed steam, under the influence of gravity, drain to the

        lower horizontal well and are produced through the wellbore to the

        surface.

     

     CAUTION ON FORWARD-LOOKING STATEMENT. This communication is based on

information available when the materials were prepared and is provided as a

matter of convenience only. VCI makes no warranty or representation, express,

implied, statutory or otherwise, as to the accuracy or completeness of the

information contained in this communication. VCI disclaims liability for any

reliance upon any information or representation contained in this

communication, for any omissions from this memo, and for any written or oral

communications made by the Company or its representatives in connection with

this communication. This communication does not necessarily contain all the

information that a recipient may require or desire. Any reliance or use of

such information is done at the recipient's sole risk. It is understood that

only those representations and warranties which may be contained in a

definitive agreement, if and when executed, shall have any legal effect. This

communication is not and under no circumstances is to be construed as, an

advertisement or offer to sell any securities of VCI. Certain statements

contained in this communication are prospective in nature and constitute

forward-looking statements. Such statements involve known and unknown risks,

uncertainties, and other factors that could cause VCI's actual results,

performance or achievement to differ materially from those expressed in, or

implied by, the forward looking statements. Accordingly, no assurance can be

given that any of the forward looking statements will transpire or occur, or

if any of them do so, what benefits VCI will derive therefrom. VCI disclaims

any intention or obligation to update or revise any forward looking

statements, whether as a result of new information, future events or

otherwise.


SOURCE: Value Creation Inc.


    CONTACT: Value Creation Inc, 

Conservation Energy Value Creation Inc, 3 image

             (403) 539-4500








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