THE WALL STREET JOURNAL: Shell Canada Announces C$1.8B Capital Expenditure Program For 2005: “Shell Canada Ltd plans C$1.8 billion of capital and exploration spending in 2005, up more than 60% from 2004 levels. (ShellNews.net) Posted 19 Nov 04

DOW JONES NEWSWIRES

CALGARY -- Shell Canada Ltd. (SHC.T) plans C$1.8 billion of capital and exploration spending in 2005, up more than 60% from 2004 levels.

In a news release, Shell Canada said it will spend C$220 million for exploration and C$560 million for development projects in 2005. About 60% of the program will focus on maintaining natural gas production levels in current areas of operation, C$335 million in the Foothills area of Western Canada and about C$150 million for the Sable gas project offshore Nova Scotia.

The rest of the capital spending program is mainly related to growth opportunities, unconventional gas and Peace River in-situ oil sands in Western Canada and the Mackenzie Gas Project in the far north, the company said.

The unconventional gas program includes additional test wells to further advance and assess tight gas and coalbed methane opportunities in British Columbia and Alberta. The Peace River program includes additional wells to increase bitumen production to the current license capacity of 12,000 barrels a day and engineering and technical work for a potential 30,000 barrel-a-day expansion project.

Depending on the outcomes of this work and obtaining necessary approvals, construction on the Peace River expansion project could start in 2007, the company said.

The 2005 program for Oil Sands includes C$135 million for Athabasca Oil Sands Project operations and profitability initiatives and C$215 million for growth.

The 2005 program for Oil Products includes about C$110 million for marketing and C$370 million for manufacturing and distribution projects.

Shell Canada is an integrated oil and gas company.

Company Web Site: http://www.shell.ca

-Judy McKinnon, Dow Jones Newswires; 416-306-2100