Petro-Canada to Spend $1 845 Million in 2002

Petro-Canada's Board of Directors approved a program of capital expenditures totaling $1 845 million for 2002.

This capital program demonstrates Petro-Canada's firm commitment to invest for the creation of long-term shareholder value. The 2002 capital spending budget continues Petro-Canada's growth momentum by investing through the current soft commodity environment.

The company will continue to consistently fund its successful natural gas program in Western Canada, where it is one of the largest and most profitable gas producers. An expanded two-rig exploration program is planned for the Mackenzie Delta.

The budget will advance Petro-Canada's position as a major developer of Canada's oil sands deposits. Approximately $220 million will be committed to the company's share of capital improvements at Syncrude and the Stage-3 expansion. An estimated $310 million will be invested to complete the company's 30,000 barrel per day MacKay River in-situ SAGD project, to develop future oil sands leases and to fund preparatory work for a proposed bitumen feed conversion project at the Edmonton refinery.

Petro-Canada is also funding the further development of its East Coast offshore oil production. Approximately $220 million will provide for ongoing drilling at Hibernia and Terra Nova and the development of the White Rose project, if sanctioned.