Petro-Canada Announces Exploration Discoveries in UK and Trinidad and Tobago

Wednesday, January 23, 2008

Petro-Canada announces successful results from two international exploration wells - one in the United Kingdom (U.K.) sector of the North Sea and one in deepwater off Trinidad and Tobago.

"Exploration is a key part of our long-term growth strategy," said Peter Kallos, Executive Vice-President of International and Offshore. "Our drilling program last year yielded several successes, with these most recent discoveries among the more significant."

In Trinidad and Tobago, the Cassra-1 well in deepwater Block 22 was completed as a significant natural gas discovery. The well targeted the reservoir objective at the edge of a large seismic anomaly covering 68 km2. Petro-Canada operated the well and holds a 90% interest. Based on well results and using local field recovery factors, the discovery could have between 0.6 to 1.3 trillion cubic feet of contingent resources; however further appraisal activity is required before finalizing the estimates.

"This is an exciting result for us, because it is the first well in a four-well program on Block 22," said Kallos. "The discovery validates our exploration model and further success on the Block could lead to a material development."

The second discovery was made in the U.K. sector of the North Sea, with the successful completion of the 13/21b-7 well. The well encountered two oil columns that total nearly 80 metres when combined. Petro-Canada operated the well and holds a 50% interest. Early drill stem test data indicates the reservoir has the capacity to yield commercial flow rates. Preliminary estimates indicate a commercial discovery; however further appraisal activity is required before potential reserves can be fully assessed.

Petro-Canada and its partners plan to conduct appraisal activity on both the Trinidad and Tobago and U.K. discoveries to fully assess the resource base before considering development options.

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