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News Release

FOR IMMEDIATE RELEASE

EUB Decision Protects Bitumen for Future Generations of Albertans

Calgary, Alberta (July 24, 2007) The Alberta Energy and Utilities Board (EUB) has issued Decision 2007-056, which concludes that continued or future gas production from the Cold Lake Oil Sands Area Clearwater Formation presents an unacceptable risk to a much larger bitumen resource adjacent to the gas. As a result, the EUB will order that 122 intervals in 121 gas wells must be shut-in or not allowed to produce. The wells affected are owned by EnCana and Canadian Natural Resources Limited.

The energy content of the bitumen reserves conserved in the contested area by this decision is about 50 times larger than the energy content of the shut-in natural gas production.
The EUB notes that all parties agree gas production has caused pressure depletion in the bitumen zone and this in turn has caused solution gas to migrate to the gas zones. EnCana, however, did not agree that this would impact bitumen production.

Decision 2007-056 results from a public hearing that commenced in Calgary on February 20, 2007. The hearing included the unique step of inviting all interested parties to contribute technical evidence related to the effect of associated gas production on bitumen recovery. The EUB believes that obtaining technical input from all interested parties assisted in making the best decision possible.

As it was necessary to shut in gas as a result of this hearing, the EUB believes there is a need to assess whether additional gas production should be curtailed in situations similar to those considered at the hearing. The specific process to be used for the assessment should be determined by the EUB at a later time.

The EUB ensures that the discovery, development, and delivery of Alberta's resources and utilities services take place in a manner that is fair, responsible, and in the public interest.

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For more information, please contact:
Brenda Poole Bellows, EUB Communications
Tel. 403-297-7012
E-mail: Brenda.PooleBellows@eub.ca

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