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News Release

FOR IMMEDIATE RELEASE

EUB APPROVES MAJORITY OF PETROVERA CRUDE BITUMEN RECOVERY SCHEME DENIES ONE WELL BASED ON WATER CONCERNS LINDBERGH ELK POINT AREA

Calgary, Alberta (February 11, 2003) The Alberta Energy and Utilities Board (EUB) has approved with conditions (Decision 2003-014) the majority of a series of energy development applications from Petrovera Resources Limited to construct and operate a primary recovery scheme which included 16 well licences for the recovery of crude bitumen in the Cold Lake Oil Sands Area near Lindbergh in east central Alberta. However, the EUB has denied issuing a licence for one of the wells due to concerns over the possible contamination of a potable water aquifer that supplies drinking water to the hamlet of Lindbergh.

Interventions opposing the Petrovera applications were filed by a group of residents living within the Hamlet of Lindbergh and by a local registered seed grower with land immediately adjacent to the application area. An EUB public hearing into the applications was held beginning November 13, 2002 in the Town of Elk Point. Issues discussed at the hearing included the need for reduced spacing and the proposed wells, impacts of drilling from a surface location in the south half of Section 3-57-5W4M, gas conservation/emissions and other impacts, and general concerns.

The EUB finds that Petrovera has demonstrated the need for the proposed reduced spacing and wells. The EUB finds that the associated impacts can be properly addressed and mitigated. As a result, the EUB is of the view that the subject applications are in the public interest, and therefore, it approves all the applications, except Application 1256330 for the 2-3-57-5W4M well, which is denied (see Backgrounder).

Petrovera undertook certain commitments that are not specifically required by the EUBs regulations. The EUB also attached four conditions to the project approval. Conditions generally are requirements in addition to, or otherwise expand upon existing regulations and guidelines.

The EUB regulates investor-owned natural gas, electric and water utilities to ensure that customers receive safe and reliable service at just and reasonable rates, and ensures that the discovery, development and delivery of Albertas resources takes place in a manner that is fair, responsible and in the public interest.

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This news release and Decision 2003-014 are available on the EUB Website at http://www.ercb.ca

For further information please contact:
Greg Gilbertson, Section Leader
EUB Communications
Phone (403) 297-3648

NR 2003-08

Backgrounder

WATER ISSUE

The EUB heard from the Lindbergh residents group that they were particularly concerned that one specific well (Application 1256330 for the 2-3-57-5W4M well), was proposed to be located on high ground to the northeast of Lindbergh, which could impact the shallow water wells that supply the hamlet. The Lindbergh Groups concerns were based on the belief that wells in the south half of Section 3 would be located in the recharge area of the shallow aquifer system it used as a water source.

Petrovera indicated that it had shown concern for and properly addressed the issues and concerns related to the Lindbergh Groups water supply. The applicant noted that it had retained hydrogeological experts to investigate and prepare recommendations to protect the hamlets water supply.

In its Decision, the EUB states that it recognizes that the shallow, unconfined aquifers that provide the drinking water supply to Lindbergh are susceptible to contamination by the development proposed by the applicant because the recharge area is very close to the proposed wells and the aquifer system is not naturally protected by overlying impermeable material. While Petroveras mitigative measures are extensive, the Board believes approval of a well site in the recharge area of this shallow, unconfined aquifer could pose an unacceptable level of risk.

On the basis of the evidence before it, the EUB does not believe that this is an acceptable risk, and therefore it will not permit surface activity in the south half of Section 3.

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For further information please contact:
Greg Gilbertson, Section Leader
EUB Communications
Phone (403) 297-3648