Petro-Canada to Divest Assets in Drayton Valley Region

Petro-Canada is planning to sell its interests in Brazeau and West Pembina facilities and associated field reserves by the end of 2006.

Fifty field employees will be affected by the proposed divestiture. They have been informed of the pending sale and will be kept apprised of developments as the process evolves.

"We are committed to treating our employees well. They have operated these facilities safely for many years and they deserve a fair and respectful process to let them know exactly how they will be affected," said Heather Scott, General Manager, Production Engineering & Operations for Petro-Canada's North American Natural Gas business.

Scott added that there will be no disruption to operations during the divestiture process.

Since Petro-Canada is not actively acquiring new acreage in the Drayton Valley area, there is limited potential to grow reserves and production in this region. The Brazeau River Complex offers sour gas processing capability and may better fit a company with midstream business strategy.

The divestment includes a 31% working interest in the Brazeau plant, 10% in the West Pembina plant and approximately 11 Bcfe of proved reserves. The proposed date for the divestment is October 1, 2006 with a closing date before the end of 2006.

Petro-Canada is one of Canada's largest oil and gas companies, operating in both the upstream and the downstream sectors of the industry in Canada and internationally. We create value by responsibly developing energy resources and providing world class petroleum products and services. Our common shares trade on the Toronto Stock Exchange under the symbol PCA and on the New York Stock Exchange under the symbol PCZ.