News release

Deer Creek Energy to use HC Process Systems Vapour Recovery Unit on another Alberta heavy oil project

Calgary based engineering company HC Process Systems Inc has received another order for a Vapour Recovery Unit (VRU) to be used in the production of Alberta heavy oil. HC Process Systems will design and supply the $1,000,000 unit to Deer Creek Energy Limited as part of the Joslyn Phase 2 SAGD project in the Fort McMurray area.

Deer Creek Energy is a Calgary based oil sands development company, and is embarking on a multi-stage risk managed development plan for the Joslyn project, which has over 50,000 acres of Oil Sands Lease. Phase 2 provides for 10,000 barrels of bitumen per day, and by staging the SAGD and mining development Deer Creek will be able to optimize its strategy and plan of development for the Joslyn Project.

The VRU forms an important part of the facility, and comprise of (2) liquid ring compressors and all necessary equipment to take the hot wet vapours from the storage tanks and other areas. The vapours will be compressed for further processing, and in addition the unit will recover heavier hydrocarbons (diluent) as liquid.The complete package, measuring approximately 30ft x 20 ft wide, will be designed and built in Calgary.

Deer Creek Energy appointed Bower Damberger Rolseth Engineering Ltd to oversee the design and engineering of the facilities. BDR was formed in 1984, and provides quality engineering services to the Canadian oil and gas industry. The proven capabilities of HC Process in the field of vapour recovery assisted in securing this order.

Charles Dean P.Eng., said: "We have the local knowledge and capability to take a system from process flow diagram to the completed unit. We are proud to be a part of this important development of an Alberta resource."

HC Process Systems specializes in engineering liquid ring compressor vapour recovery systems, and have many units operating in Alberta as well as the US.

January 2005

For further company information please contact:
Charles Dean, P.Eng.or Hamish Ferguson P.Eng.,