PanCanadian Awards Deep Panuke FEED Contract

PanCanadian Petroleum Limited has awarded the contract for the front-end engineering design (FEED) study for the project to the ACCENT-Saipem Energy Joint Venture.

The study will include the preliminary design of process equipment, structures and pipelines, and will enable us to determine optimum development plans.

ACCENT-Saipem Energy has an Atlantic Canadian presence with a base of more than 300 personnel, and has worked on large East Coast offshore projects including Tier 1 and the ongoing Engineering Services Contract of the Sable Offshore Energy Project. The expertise from this team will provide for the optimum design for Deep Panuke. It is anticipated that PanCanadian will have results from the FEED study by the first quarter of 2002.

Deep Panuke is located 155 miles southeast of Halifax, Nova Scotia. Since 1999, PanCanadian has drilled four wells in the field, each of which tested at rates in excess of 50 million cubic feet of gas per day. PanCanadian has a 100 percent interest in the Deep Panuke development. The Company plans to file a Development Plan Application for Deep Panuke with the Canada-Nova Scotia Offshore Petroleum Board in the fourth quarter of 2001.