Petro-Canada Purchases Oil Sands Leases Adjacent to MacKay River

Petro-Canada has purchased 13 additional oil sands leases for $30 million. The leases comprise a total of 31,232 hectares immediately adjacent to Petro-Canada's existing in situ development at MacKay River.

Petro-Canada's in situ production at MacKay River is currently running at around 25,000 barrels per day. The next stage of development of this core area, the MacKay River expansion, is expected to more than double production by the end of the decade. Continued in situ development is an important part of Petro-Canada's overall integrated oil sands strategy.

"Buying these additional leases was a natural decision for us," said Neil Camarta, Petro-Canada's Senior Vice-President, Oil Sands. "With over three years of operating experience under our belts at MacKay River, we have a good understanding of the top quality resources in the area. These new lands fit well with our growth plans for MacKay River."

Petro-Canada is well positioned with about 10 billion barrels of oil sands total resource. The Company is moving forward with plans for the integrated development of both mineable and in situ oil sands resources to realize maximum long-term value for shareholders.