First Calgary Petroleums Completes FEED Study

First Calgary Petroleums Ltd., in partnership with Sonatrach, is pleased to announce that the Front End Engineering and Design Study ("FEED") undertaken by Genesis for the MLE field development work has now been successfully completed and was on budget.

A vital component of the FEED Study was to establish an accurate capital cost of the development. The FEED Study also identified the critical path long lead items and a tender for the purchase of all necessary line pipe was placed on December 14, 2007.

By mid-January 2008, tenders for the purchase compressors and turbo expanders will also be issued.

The FEED Study is a significant input to the Engineering, Procurement and Construction ("EPC") tender for the MLE project. Following a solicitation process, five world class contractors have advised that they are committed to bidding for this work.

Sonatrach and FCP intend to issue the EPC tender by mid-January 2008 and the anticipated award of the EPC Contract is the end of May 2008.

Shane O'Leary, Chief Operating Officer, commented, "I am very pleased that the FEED has confirmed the facilities capital cost is within the range estimated during previous conceptual work.

"The next steps are already underway, with long lead items being ordered and the EPC tender process being rapidly progressed, to coincide with the planned closing of the project financing transaction to support FCP's funding of the MLE development."