Terre de Grace Project
On March 7, 2007, Value Creation Inc. announced the company is proceeding with its first Athabasca oil sands production project, Terre de Grace, which will combine in situ recovery and field upgrading.

Value Creation has submitted its Project Disclosure document and proposed Terms of Reference for review to the Alberta Energy and Utilities Board and Alberta Environment, and has embarked on stakeholder consultation. Subject to regulatory approvals, the upstream-upgrading project is expected to begin production in 2011.

The Terre de Grace Project is located on a large contiguous block of leases, covering 290 square miles of oil sands resources owned by Value Creation. The Terre de Grace block is one of several held by Value Creation, which wholly owns one of the largest oil sands resources held by an independent Canadian company.

Situated in the east-central area of the Terre de Grace block, the first phase of the Terre de Grace Project (TDG-1) covers about 15 percent of the block. Based on an independent consultant's calculation and Value Creation's own estimate, TDG-1 has "exploitable bitumen in place" of 2.45 to 2.77 billion barrels. Economic recoverable bitumen will depend on reservoir characteristics and technical cost.

TDG-1 is expected to be an 80,000 bbl/d upstream-upgrading project, developed in two 40,000 bbl/day SAGD phases and producing light, refinery-ready crudes. It represents an innovative, synergistic integration of Value Creation's proprietary upgrading technologies with thermal bitumen recovery, leading to exceptional technical cost advantages and higher economic bitumen recovery. The capital cost of the Project is projected to be in the range of $3.5 to $4.0 billion (2007 dollars). When the Project is fully implemented, the SAGD energy requirement is expected to be provided by combustion of by-products, which is expected to lead to an unusually low operating cost, while maintaining high volume yields of marketable crudes. The TDG-1 Project is also designed to be very energy efficient, and is expected to have lower emissions than conventional approaches.