Teck Cominco To Acquire 50% Interest In Lease 14 From UTS

Teck Cominco Ltd., Vancouver, (Toronto: TCK.A; NYSE: TCK) plans to acquire a 50% interest in Lease 14 in the Athabasca oil-sands area of Alberta from UTS Energy Corp., Calgary, (Toronto: UTS) for C$200 million (US$178 million). The assets consist of approximately 7,147 acres (2,858 hectares) in Township 98, ranges 10 and 11 W4, on the west side of the Athabasca River, and across from the northern boundary of the Fort Hills oil-sands project. Assumed reserves are approximately 400 million barrels of bitumen. Teck will pay C$120 million at closing and UTS will pay approximately C$80 million owed to Teck in other oil-sands lease acquisitions, for a net payment by Teck of approximately C$40 million. The purchase price may be adjusted based on the resource estimate to reflect a maximum of 500 million barrels or a minimum of 300 million barrels at C$1 per barrel.