Value Creation Inc. and its wholly owned subsidiary BA Energy Inc. filed a
regulatory application to build TriStar SAGD/Upgrading Pilot Project south of
Fort McMurray, Alberta

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CALGARY, June 28 /CNW/ - Value Creation Inc. ("VCI"), part of the Value Creation Group, and its wholly owned subsidiary BA Energy Inc. ("BAE") filed an application with the Energy Resources Conservation Board ("ERCB") to build a 1,000 bpd Steam Assisted Gravity Drainage ("SAGD") integrated with Upgrading Pilot Project on its TriStar leases in the Athabasca oil sands area (the "Project"). The Project is located approximately 14 km south of Fort McMurray. The TriStar leases contain over 2 billion barrels of contingent and prospective recoverable bitumen that can support approximately 200,000 b/d of production for decades.

The Project will establish the high reservoir qualities of the TriStar leases and affirm the significant advantages of the integration of SAGD with VCI proprietary upgrading technologies which can directly upgrade SAGD wellhead slurry of bitumen emulsion, totally unique for upgrading technologies. Such combination is expected to significantly simplify process complexity, achieving very significant competitive advantages in capital and operating costs, as well as reducing environmental footprint and emissions.

This Project is key to a special business initiative with a series of projects of increasing sizes, designed for expeditious execution and prudent risk and financial management. "We fondly call this initiative Value Creation In Motion ("VcIM"), our determined drive to define our destiny," said Dr. Columba Yeung, Chairman and Chief Executive Officer of Value Creation Group.

VcIM is one of three parallel business dimensions of VCI, the other two being:

    
    -   Partnership with an International Super Major in the development of
        the Terre de Grace oil sand leases (a contiguous block with vast
        bitumen resources), which was announced on March 15, 2010. A 10,000
        bpd semi-commercial project has already received regulatory
        approvals.
    -   Value Chain Enhancement to provide upgrading and product value
        optimization for VCI, its partners and clients. VCI, via its
        subsidiary BAE, has regulatory approvals for a 260,000 bpd Merchant
        Upgrader in the Heartland Industrial Area, a pivotal logistic hub for
        oil movement from Alberta to North America and the Pacific Rim in the
        future.
    

Note to editors

    
    -   Value Creation Inc. is a private Canadian company focused on the
        development of its large oil sands resource holdings to become a
        full-value-chain oil sands enterprise, leveraging synergistic
        applications of its proprietary technologies in integrated resource
        development.

    -   BA Energy Inc., a wholly owned subsidiary of VCI, owns a large block
        of prime industrial land (over a thousand acres) in the oil hub of
        Heartland ( NE of Edmonton), with major heavy oil pipelines from all
        3 major oil sands regions, and crude pipelines to U.S. markets.

    -   SAGD is a thermal in situ recovery process using pairs of horizontal
        wells. A horizontal production well is located near the bottom of the
        reservoir and steam is injected into a second horizontal well placed
        above it, heating the bitumen and enabling it to flow. The bitumen
        and condensed steam gravity drain into the lower horizontal well and
        are produced through the wellbore to the surface.

    -   VCI upgrading technology comprises two processes. The first process
        Accelerated Decontamination ("ADC(TM)") takes hot bitumen emulsion
        and the produced water directly from the SAGD wells and produces
        clean decontaminated oil ("DCO"), premium heavy oil with a negligible
        amount of asphaltenes. DCO can be transported with little or no
        diluent. The extracted asphaltenes can be sold as solid fuel or used
        as a fuel for steam generation. The water produced through this
        process contains minimal oil and requires nominal de-oiling prior to
        water treatment and steam generation.

    -   The second process, called Ultra Selective Pyrolysis upgrading
        ("USP(TM)"), can produce either synthetic crude oil or diluent by
        cracking the high boiling point residue in the DCO. The USP(TM) also
        produces synthetic gas that can be used for steam generation. The
        coke and gypsum by-products can be used for commercial purposes.
    

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