MACKAY RIVER

Petro-Canada announced second quarter operating earnings of $99 million ($0.20/share), down 91% from $1,151 million ($2.38/share) in the second quarter of 2008. Second quarter 2009 cash flow from operating activities before changes in non-cash working capital was $634 million ($1.31/share), down 68% from $1,979 million ($4.09/share) in the same quarter of last year. Net earnings were $77 million ($0.16/share) in the second quarter of 2009, compared with $1,498 million ($3.10/share) in the same quarter of 2008. Oil Sands production averaged 53,000 barrels/day (b/d) in the second quarter of 2009, relatively unchanged from 53,900 b/d in the second quarter of 2008. Increased production at MacKay River reflected strong reliability and increased capability as well as planned maintenance in the second quarter of 2008. Decreased Syncrude production reflected operational upsets and the longer than planned completion of the turnaround of Coker 8-3 in the current quarter.

Petro-Canada reported that in the second quarter of 2009, Oil Sands operations recorded a net loss of $188 million, compared with net earnings of $177 million in the second quarter of 2008. Results reflected lower realized prices, lower production from Syncrude and higher operating expense, partially offset by increased production from MacKay River. Syncrude production decreased 22% in the second quarter of 2009, compared with the second quarter of 2008. MacKay River production was up 28% in the second quarter of 2009, compared with the same period of 2008, due to strong reliability and increased capability, as well as planned maintenance in the second quarter of 2008. MacKay River combined sour synthetic crude oil and bitumen realized prices averaged $50.73/bbl in the second quarter of 2009, compared with average bitumen only prices of $75.85/bbl in the second quarter of 2008.

Petro-Canada reported that the MacKay River expansion, Fort Hills mining project and the Montreal coker, are not sanctioned and are on hold until commodity prices and financial markets stabilize and the proposed merger with Suncor is completed.