AEC and PanCanadian Merger on Track

PanCanadian Energy Corporation and Alberta Energy Company announced that they have received a 'no action' letter from the Competition Bureau of Canada with respect to the proposed merger of AEC and PanCanadian. The receipt of this 'no action' letter satisfies one of the key approvals required to complete the proposed merger to form EnCana Corporation. The Bureau states that it is of the view that grounds do not exist at this time to initiate proceedings before the Competition Tribunal under the merger provisions of the Competition Act.

"This is an important milestone in the merger process and we are very pleased," said Gwyn Morgan, AEC's President and Chief Executive Officer. "Momentum continues to build towards the shareholder meetings on April 4th."

Michael Grandin, President of PanCanadian, added, "With this letter, EnCana moves one step closer to becoming a reality. Our integration plans are right on schedule. Joint leadership appointments have been made and team development is underway."

The proposed merger is still subject to approvals by the securityholders of both companies, the Court of Queen's Bench of Alberta and the expiry of the waiting period under the Hart Scott Rodino Act; such expiry is scheduled to occur on March 18, 2002.

The AEC and PanCanadian boards of directors have unanimously approved the proposed merger and recommend that their respective shareholders and, in the case of AEC, its optionholders, vote in favor of the transaction.