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,
(403) 539-4500
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