Value Creation, BP to Develop Athabasca Block

Value Creation has entered into a Partnership with BP Canada to develop one of VCI's large oilsands lease blocks-Terre de Grace, in the Athabasca region.

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

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.



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