News release

HC Process Systems receives order for a Vapour Recovery Unit to be used on a major 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. The company will supply the system to the Long Lake oil sands project. The Long Lake Project is a 50/50 joint venture of Nexen Inc. and OPTI Canada Inc. The first phase consists of 72,000 barrels per day (b/d) of SAGD (steam assisted gravity drainage) oil production, integrated with an onsite upgrading facility using both proprietary and conventional upgrading technologies.

HC Process Systems Inc. will design and supply the $1,500,000 system as part of the oil production facilities.

The VRU will be mounted on a skid approximately 50ft long by 20 ft wide within a modular metal building which will contain (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.

Nexen appointed Colt Engineering to oversee the design and engineering of the oil production facilities. The capability of HC Process to be able to provide local engineering expertise in process and design for this system to Colt assisted in securing the order.

Hamish Ferguson P.Eng., said: "We pride ourselves on the expertise we have developed over the years in designing and supplying vapour recovery systems to the heavy oil industry. We have a proven track record in this market, and are proud to be part of this project."

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

December 2004

For further company information please contact:
Charles Dean, P.Eng.or Hamish Ferguson P.Eng.,
Telephone (403) 212-5750

Please click here to contact Charles Dean.