----

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**FORM        40 - F**

**PETRO-CANADA**

| **Canada**                                                                                                         | **1311,                  1321, 1382, 5541**                                                                                                            | **Not                  Applicable**                                                                     |
|--------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|
| (Province                  or otherjurisdiction                  ofincorporation                  or organization) | (Primary                  standard industrial classification                  code number, if                  applicable)                             | (I.R.S.                  employeridentification                  number,if                  applicable) |
|                                                                                                               |                                                                                                                                                   |                                                                                                    |
|                                                                                                               | 150                  - 6th                  Avenue S.W.Calgary,                  AlbertaCanada                  T2P 3E3(403)                  296-8000 |                                                                                                    |
| (Address                  and telephone number of registrant’s principal executive                  office)  |

**CT        Corporation System**

**111        Eight Avenue - CT**

**New        York, New York 10011**

**(212)        894-8940**

**Common        Shares**
**New        York Stock Exchange**

**None**

**5%        Senior Notes due 2014**

**9        ¼% Debentures Due 2021**

**7        **
**7/8**
**%        Debentures Due 2026**

**7%        Debentures Due 2028**

**4%        Senior Notes Due 2013**

**5.35%        Senior Notes Due 2033**

**5.95%        Senior Notes Due 2035**

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**CAUTIONARY        NOTICE REGARDING FORWARD LOOKING INFORMATION**

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**TABLE      OF CONTENTS**

|     Presentation              of Information                                                           |  1  |
|----------------------------------------------------------------------------------------------------------------------------|----------|
|     Conversion              Factors                                                                    |  1  |
|     Non-Generally              Accepted Accounting Principles Measures                                 |  1  |
|     Legal              Notice - Forward-Looking Information                                            |  1  |
|  **Corporate              Structure**                                                                                 |  3  |
|     Incorporation              of Petro-Canada                                                         |  3  |
|     Intercorporate              Relationships                                                          |  3  |
|     Business              of Petro-Canada                                                              |  3  |
|  **General              Development of the Business**                                                                 |  5  |
|     Three-Year              History                                                                    |  5  |
|  **Description              of the Business**                                                                         |  8  |
|     Business              Environment                                                                  |  8  |
|     Risk              Management                                                                       |  9  |
|     Upstream                                                                                           |  14 |
|       North              American Natural Gas                                                |  14 |
|       East              Coast Oil                                                            |  19 |
|       Oil              Sands                                                                 |  23 |
|       International                                                                          |  28 |
|     Upstream              Production and Prices                                                        |  32 |
|     Reserves                                                                                           |  41 |
|     Downstream                                                                                         |  53 |
|     Reasearch              and Development                                                             |  59 |
|     Human              Resources                                                                       |  59 |
|     Social              and Environmental Policies                                                     |  59 |
|     Environmental              Expenditures                                                            |  60 |
|  **Select              Financial Data**                                                                               |  62 |
|     Capital              Expenditures on Property, Plant and Equipment and Exploration                 |  64 |
|     Dividends                                                                                          |  65 |
|  **Capital              Structure**                                                                                   |  66 |
|     General              Description of Capital Structure                                              |  66 |
|     Constraints                                                                                        |  66 |
|     Credit              Ratings                                                                        |  67 |
|  **Market              for Securities**                                                                               |  68 |
|     Trading              Price and Volume                                                              |  68 |
|     Prior              Sales                                                                           |  68 |
|  **Directors              and Officers**                                                                              |  69 |
|     Directors                                                                                          |  69 |
|     Share              Ownership                                                                       |  76 |
|     Corporate              Governance                                                                  |  76 |
|     Audit              Committee Disclosure                                                            |  80 |
|  **Interest              of Management and Others in Material Transactions**                                          |  80 |
|  **Transfer              Agents and Registrars**                                                                      |  81 |
|  **Material              Contracts**                                                                                  |  81 |
|  **Interests              of Experts**                                                                                |  81 |
|  **Additional              Information**                                                                              |  81 |
|  **Schedule              A - Report on Reserves Data by Senior Officer Responsible for Reserves              Data**   |  82 |
|  **Schedule              B - Report of Management and Directors on Reserves Data and Other              Information** |  84 |
|  **Schedule              C - Audit, Finance and Risk Committee**                                                      |  86 |

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**Presentation      of Information**

**Conversion      Factors**

|  1 cubic                metre (liquids) | = | 6.29 barrels                        |
|--------------------------------------------------------|---|------------------------------------------|
| 1 cubic                metre (natural gas)   | = | 35.30 cubic feet               |
| 1 litre                                           | = | 0.22 imperial                gallon |
| 1 square                kilometre                 | = | 247.10 acres                        |
| 1 hectare                                         | = | 2.47 acres                          |
| 1 cubic                metre                      | = | 1,000 litres                        |

**Non-Generally      Accepted Accounting Principles Measures**

**Legal      Notice - Forward-Looking Information**

*"plan*
*"*
*"anticipate*
*"*
*"forecast*
*"*
*"believe*
*"*
*"target*
*"*
*"intend*
*"*
*"expect*
*"*
*"estimate*
*"*
*"budget"*

| -  business                    strategies and goals 
-  outlook                    (including operational updates and strategic milestones) 
-  future                    capital, exploration and other expenditures  
-  future                    resource purchases and sales  
-  construction                    and repair activities  
-  refinery                    turnarounds  
-  anticipated                    refining margins 
-  future                    oil and gas production levels and the sources of their growth                     
-  project                    development and expansion schedules and results 
-  future                    results of exploration activities and dates by which certain                    areas may                    be developed or may come on-stream | -  retail                    throughputs 
-  pre-production                    and operating costs 
-  reserves                    and resources estimates 
-  royalties                    and taxes payable  
-  production                    life-of-field estimates 
-  natural                    gas export capacity  
-  future                    financing and capital activities (including purchases of Petro-Canada                    common shares under the Company's normal course issuer bid (NCIB)                    program) 
-  contingent                    liabilities (including potential exposure to losses related to                    retail                    licensee agreements) 
-  environmental                    matters  
-  future                    regulatory approvals |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| -  industry                    capacity 
-  imprecise                    reserves estimates of recoverable quantities of oil, natural                    gas and                    liquids from resource plays and other sources not currently classified                    as reserves 
-  the                    effects of weather and climate conditions  
-   the                    results of exploration and development drilling and related                    activities 
-  the                    ability of suppliers to meet commitments  
-  decisions                    or approvals from administrative tribunals 
-  risks                    attendant with domestic and international oil and gas operations                     
-  expected                    rates of return 
  | -  general                    economic, market and business conditions  
-  competitive                    action by other companies  
-  fluctuations                    in oil and gas prices 
-  refining                    and marketing margins 
-  the                    ability to produce and transport crude oil and natural gas to                    markets                     
-  fluctuations                    in interest rates and foreign currency exchange rates  
-  actions                    by governmental authorities, including changes in taxes, royalty                    rates                    and resource-use strategies 
-  changes                    in environmental and other regulations 
-  international                    political events |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Petro-Canada      disclosure of reserves **

*"probable," "possible," "recoverable," *
*"potential reserves and resources"*

| **Definitions                Petro-Canada uses**                                                                  | **Reference**                                                                                                                                                                              |
|-------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Proved                oil and gas reserves (includes both proved developed and proved                undeveloped) | U.S.                SEC reserves definition (Accounting Rules Regulation S-X 210.4-10,                FASB-69)                                                                             |
| Unproved                reserves, probable and possible reserves                                                  | CIM                (Petroleum Society) definitions (Canadian Oil and Gas Evaluation                Handbook,                Vol. 1 Section 5)                                              |
| Contingent                and prospective resources                                                               | Society                of Petroleum Engineers, World Petroleum Congress and American Association                of Petroleum Geologist definitions (approved February                2000) |

*"total      resources"*

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**CORPORATE      STRUCTURE**

**Incorporation      of Petro-Canada**

*Canada Business Corporations      Act*

**Intercorporate      Relationships**

|  **Name**                                           |  **Jurisdiction                of Incorporation** |  **Purpose**                                                                                                                                                             |
|----------------------------------------------------------|--------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3908968 Canada Inc.                            | Canada                                                 | A                Canadian subsidiary holding Petro-Canada's                International interests                                                                       |
| Petro-Canada                U.K. Holdings Ltd. | United Kingdom                (U.K.)              | A                subsidiary of 3908968 Canada Inc. that holds Petro-Canada's                U.K. interests                                                     |
| Petro-Canada                U.K. Limited            | U.K.                                                   | A                subsidiary of Petro-Canada U.K. Holdings Ltd. through which                Petro-Canada's operations are conducted in                the U.K. |

**Business      of Petro-Canada**

----

**Upstream**

| **North                American Natural Gas**             |   | **East                Coast Oil**1                                                |
|-----------------------------------------------------------|--------|----------------------------------------------------------------------------------------|
| §  Western                Canada           |   | §  Hibernia                (20% Interest)                               |
| -  *Alberta                Foothills*           |   | §  Terra                Nova (34% Interest)                             |
| -  *Southeast                Alberta/*          |   | §  White                Rose (27.5% Interest)                           |
| *Southwest                Saskatchewan*                   |   | §  Other                Significant Discoveries and Exploration Acreage |
| -  *West                Central Alberta*        |
| -  *Northeast                British Columbia*  |   |                                                                                   |
| §  U.S.                Rockies             |   |                                                                                   |
| §  Mackenzie                Delta/Corridor |   |                                                                                   |
| §  Alaska                                  |   |                                                                                   |

| **Oil                Sands**                                      |   | **International**1                                      |
|-------------------------------------------------------------------|--------|---------------------------------------------------------|
| §  Syncrude                (12% Interest)          |   | §  Northwest                Europe       |
| §  MacKay                River (100% Interest)     |   | -  *Buzzard                (29.9% Interest)*  |
| §  Fort                Hills (55% Interest)        |   | §  North                Africa/Near East |
| §  Other                *In Situ* Oil Sands Leases |   | §  Northern                Latin America |

**Downstream**

| **Refining                and Supply**                                                                        |   | **Sales                and Marketing**                |   | **Lubricants**                                                 |
|---------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|--------|----------------------------------------------------------------|
| §  Montreal                Refinery                                                            |   | §  Retail                Operations    |   | §  Mississauga                Lubricants Centre |
| §  Edmonton                Refinery                                                            |   | §  Wholesale                Operations |   |                                                           |
| §  ParaChem                Chemical Plant    (51%                Interest) |   |                                                  |   |                                                           |

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**GENERAL      DEVELOPMENT OF THE BUSINESS**

**Three-Year      History**

**2006**

-  delivered operating earnings adjusted            for unusual items of approximately $2 billion and cash flow of about            $3.7 billion 
-  finished 2006 with a proved plus            probable reserves replacement ratio of 175% over five            years1 
-  achieved first production from            the            North Sea platforms of De Ruyter and L5b‑C, as well as from the Syncrude Stage            III expansion  
-  completed lubricants plant expansion,            and Downstream ultra‑low sulphur diesel refinery projects to produce cleaner            burning fuels  
-  secured drilling rigs for the 2007            and            2008 International exploration program 

*in situ*

----

**2005**

----

**2004**

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**DESCRIPTION      OF THE BUSINESS**

**Business      Environment**

**Business        Environment in 2006**

**Competitive      Conditions**

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**Risk      Management**

**PETRO-CANADA**
**'S      RISK PROFILE**

**BUSINESS      RISKS**
** **

***Counterparties***

***Environmental      Regulations***

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***Government      Regulations***

***Licen****ce      to Operate***

***Non-Operated      Interests***

***Project      Execution***

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***Reserves      Estimates***

***Reserves      Replacement***

**MARKET        RISKS**

***Commodity      Prices***

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***Foreign      Exchange***

***Interest      Rates***

*Derivative      Instruments*

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**OPERATIONAL      RISKS**

**FOREIGN      RISKS**

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**Upstream**

**North      American Natural Gas**

***Business      Summary and Strategy***

-  targeting          75% to 80% reserves replacement 
-  transitioning          further into unconventional gas plays 
-  optimizing          core properties in Western Canada and developing coal bed methane (CBM)          and          tight gas in the U.S. Rockies 
-  increasing          the focus on exploration 
-  developing          LNG import capacity at Gros-Cacouna, Quebec 
-  building          the northern resource base for long-term growth 

***Western      Canada and U.S. Rockies***

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**PETRO-CANADA      OWNERSHIP AND CAPACITY**

| Petro-Canada                Operated Plants |   | Working                Interest Ownership*(%)* |   | Gross                Licensed Capacity*(MMcf/d)* |   | Net                Licensed Capacity*(MMcf/d)* |   |
|---------------------------------------------|--------|------------------------------------------------|--------|--------------------------------------------------|--------|------------------------------------------------|--------|
| Hanlan                Sweet                 |   |                                           | 41     |                                             |   | 44                                             |   |   | 18 |   |
| Hanlan                Sour                  |   |                                           | 46     |                                             |   | 380                                            |   |   | 175 |   |
| **Total                Hanlan**             |   |                                           |   |                                             |   | **424**                                        |   |   | **193** |   |
|                                        |   |                                           |   |                                             |   |                                           |   |   |   |   |
| Wilson                Creek Sweet           |   |                                           | 52     |                                             |   | 12                                             |   |   | 7 |   |
| Wilson                Creek Sour            |   |                                           | 52     |                                             |   | 22                                             |   |   | 11 |   |
| **Total                Wilson Creek**       |   |                                           |   |                                             |   | **34**                                         |   |   | **18** |   |
|                                        |   |                                           |   |                                             |   |                                           |   |   |   |   |
| Boundary                Lake Sweet          |   |                                           | 100    |                                             |   | 20                                             |   |   | 20 |   |
| Boundary                Lake Sour           |   |                                           | 50     |                                             |   | 66                                             |   |   | 33 |   |
| Parkland                1                   |   |                                           | 44     |                                             |   | 18                                             |   |   | 8 |   |
| Parkland                2                   |   |                                           | 35     |                                             |   | 12                                             |   |   | 4 |   |
| Wildcat                Hills                |   |                                           | 66     |                                             |   | 124                                            |   |   | 82 |   |
| Bearberry                                   |   |                                           | 100    |                                             |   | 94                                             |   |   | 94 |   |
| Ferrier                                     |   |                                           | 99     |                                             |   | 119                                            |   |   | 118 |   |
| Gilby                East                   |   |                                           | 100    |                                             |   | 52                                             |   |   | 52 |   |
| **Total                2006**               |   |                                           |   |                                             |   | **963**                                        |   |   | **622** |   |

*in situ*

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**NORTH      AMERICAN NATURAL GAS SALES BY MARKET**

|                                                              | **                         2006** |                           2005 |
|-------------------------------------------------------------------|----------------------------------------------------------------------|------------------------------------------------------------------------|
|                                                              | ***(MMcf/d)***                                                       | ***(%                  of Total)***                          | *(MMcf/d)* | *(%                  of Total)* |
| **Sales                  to aggregators**                         |                                                                 |                                                                   |   |   |
| ProGas                  Limited                                   | **30**                                                               | **4**                                                                  | 38 | 5 |
| Cargill                  Incorporated                             | **18**                                                               | **3**                                                                  | 20 | 2 |
| Canwest                  Gas Supply Inc.                          |  -                                                              |  -                                                                |  14 |  2 |
| Others                                                            | **4**                                                                | **-**                                                                  | 3 | - |
| **Total                  sales to aggregators**                   | **52**                                                               | **7**                                                                  | 75 | 9 |
| **Direct                  sales**                                 |                                                                 |                                                                   |   |   |
| Alberta                                                           | **228**                                                              | **32**                                                                 | 286 | 35 |
| U.S. Midwest                                                 | **159**                                                              | **22**                                                                 | 160 | 20 |
| British                  Columbia and U.S. Pacific Northwest | **84**                                                               | **12**                                                                 | 112 | 14 |
| California                                                        | **43**                                                               | **6**                                                                  | 45 | 6 |
| U.S.                  Rockies                                     | **43**                                                               | **6**                                                                  | 41 | 5 |
| Eastern                  Canada                                   | **19**                                                               | **3**                                                                  | 12 | 1 |
| Saskatchewan                                                      | **7**                                                                | **1**                                                                  | 7 | 1 |
| **Total                  before internal sales**                  | **583**                                                              | **82**                                                                 | 663 | 82 |
| Sales                  within Petro-Canada                        | **81**                                                               | **11**                                                                 | 75 | 9 |
| **Total                  direct sales**                           | **664**                                                              | **93**                                                                 | 738 | 91 |
| **Total                  sales**                                  | **716**                                                              | **100**                                                                | 813 | 100 |

***Royalty      Regime***

***Mackenzie      Delta/Corridor, Northwest Territories***

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***Alaska***

***LNG***

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**Link      to Petro-Canada's Corporate and Strategic Priorities**

|                                                                                                      | **2006                RESULTS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | **2007                GOALS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|-----------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **DELIVERING                PROFITABLE GROWTH WITH A FOCUS ON OPERATED, LONG-LIFE                ASSETS** | -  drilled                    393 gross wells in Western Canada, including 291 wells in the                    Medicine                    Hat region1 
-  drilled                    more than 280 gross wells, added 50,000 net acres of tight gas                    prone                    land and continued to increase CBM well de-watering in the U.S.                    Rockies 
-  completed                    regulatory hearing for the LNG facility at Gros-Cacouna 
-  increased                    land position in Alaska to 1.5 million net acres of leased and                    option lands | -  transition                    further into unconventional gas plays 
-  optimize                    opportunities around core assets  
-  double                    U.S. Rockies production to 100 MMcfe/d by year-end                    2007 
-  shift                    focus from developing around existing production to exploring                    in new                    areas 
-  receive                    regulatory decision for the LNG facility at Gros-Cacouna 
-  advance                    exploration prospects in the Mackenzie Delta/Corridor and                    Alaska |
| **DRIVING                FOR FIRST QUARTILE**2**OPERATION                OF OUR ASSETS**                  | -  achieved                    better than 98% reliability at Western Canada facilities 
-  successfully                    conducted major turnaround at the Hanlan gas plant, with no air                    licence                    exceedances                                                                                                                                                                                                                                                                                                                                                                     | -  sustain                    reliability performance 
-  continue                    to leverage costs through strategic alliances and preferred                    suppliers                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| **CONTINUING                TO WORK AT BEING A RESPONSIBLE COMPANY**                                      | -  achieved                    record total recordable injury frequency (TRIF) in Western Canada,                    a 40%                    decrease compared with 2005 
-  improved                    employee and contractor safety culture through behaviour-based                    safety                    programs 
-  proactively                    remediated and reclaimed old sites 
-  achieved                    record low regulatory compliance exceedances                                                                                                                                         | -  continue                    to focus on TRIF and maintain low regulatory exceedances 
-  complete                    the roll out of behaviour-based safety for employees and                    contractors 
-  drive                    for continuous improvement in contractor safety performance 
-  proactively                    remediate and reclaim old                    sites                                                                                                                                                                                                                  |

----

**East      Coast Oil**

***Business      Summary and Strategy***

-  delivering          top quartile operating performance 
-  sustaining          profitable production through reservoir extensions and add-ons 
-  pursuing          high potential development projects 

***Hibernia***

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***Terra      Nova***

***White      Rose***

***Offshore      Oil Royalty Regime***

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***Other      Offshore Exploration and Development***

----

***Link      to Petro-Canada's Corporate and Strategic      Priorities***

|                                                                                                      | **2006                RESULTS**                                                                                                                                                                                                                                                                                                                                                                                                                                  | **2007                GOALS**                                                                                                                                                                                                                                                                                                                   |
|-----------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **DELIVERING                PROFITABLE GROWTH WITH A FOCUS ON OPERATED, LONG-LIFE                ASSETS** | -  ramped                    up White Rose production averaging 88,000 b/d gross (24,200 b/d                    net)                     
-  completed                    drilling the West White Rose 0-28 and North Amethyst K-15 delineation                    wells at White Rose                                                                                                                                                                           | -  increase                    reliability at Terra Nova 
-  advance                    in-field Hibernia growth prospects 
-  delineate                    West White Rose 
-  advance                    development plans for South White Rose Extension, North Amethyst                    and                    West White Rose prospects |
| **DRIVING                FOR FIRST QUARTILE OPERATION OF OUR ASSETS**                                     | -  completed                    Terra Nova turnaround for regulatory compliance and to improve                    reliability 
-  saw                    operating and overhead costs increase, reflecting turnaround                    costs at                    Terra Nova                                                                                                                                                                                  | -  conduct                    a 30-day turnaround scheduled at Hibernia for regulatory                    compliance 
-  receive                    regulatory approval to increase annual production from SeaRose                    FPSO at                    White Rose 
-  complete                    16-day turnaround at White Rose     |
| **CONTINUING                TO WORK AT BEING A RESPONSIBLE COMPANY**                                      | -  saw                    28% decrease in TRIF, compared with 2005 
-  accepted                    responsibility for an improper discharge of oil from Terra Nova                    in 2004,                    contributing $220,000 of the $290,000 fine to positive environmental                    projects 
-  improved                    the produced water system on Terra Nova, resulting in no regulatory                    compliance exceedances | -  further                    reduce TRIF 
-  apply                    lessons learned from oily water discharge to prevent future                    incidents 
-  maintain                    zero regulatory                    exceedances                                                                                                  |

----

**Oil      Sands**

***Business      Summary and Strategy***

*in situ*
*in situ*

- phased        and integrated development of reserves to incorporate knowledge gained 
-  disciplined          capital investment to ensure long-life projects create value  
-  a              staged approach to development of capital-intensive Oil Sands projects              to              allow rigorous cost management and the opportunity to benefit from              evolving              technology 

***Oil      Sands Mining - Syncrude***

----

| **PROVE****D                      RESERVES - SYNTHETIC CRUDE                      OIL****Working                      Interest Before                      Royalties** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

| *(MMbbls)*                                                           |   | **Base                    Mine and****North                    Mine**1 |   | **Aurora**2 |    | **Total** |   |
|----------------------------------------------------------------------|--------|------------------------------------------------------------------------|--------|-------------|---------|-----------|--------|
| **Beginning                    of year 2005**                        |   | **109**                                                                |   |        | **222** |      |   | **331** |   |
| Revision                    of previous                    estimates |   | -                                                                      |   |        | 20      |      |   | 20 |   |
| Extensions                    and                    discoveries     |   | -                                                                      |   |        | -       |      |   | - |   |
| Production,                    net                                   |   | (4                                                                     | )      |        | (5      | )         |   | (9 | ) |
| **End                    of year 2005**                              |   | **105**                                                                |   |        | **237** |      |   | **342** |   |
| Revision                    of previous                    estimates |   | -                                                                      |   |        | 14      |      |   | 14 |   |
| Extensions                    and                    discoveries     |   | -                                                                      |   |        | -       |      |   | - |   |
| Production,                    net                                   |   | (5                                                                     | )      |        | (6      | )         |   | (11 | ) |
| **End                    of year 2006**                              |   | **100**                                                                |   |        | **245** |      |   | **345** |   |

----

**SYNCRUDE      MINING STATISTICS**

|                                                                |   | **2006** |      | 2005   |   | 2004   |   |
|---------------------------------------------------------------------|--------|----------|-----------|--------|--------|--------|--------|
| **Total                Mined Volume**1                              |   |     |      |   |   |   |   |   |   |   |
|   Millions                of tons                         |   |     | **398.0** |   |   | 324.0  |   |   | 353.2 |   |
|   Mined                volume of oil sands ratio          |   |     | **2.3**   |   |   | 2.1    |   |   | 2.1 |   |
| **Oil                Sands Processed**                              |   |     |      |   |   |   |   |   |   |   |
|   Millions                of tons                         |   |     | **175.0** |   |   | 152.6  |   |   | 170.9 |   |
|   Average                bitumen grade *(weight %)*       |   |     | **11.3**  |   |   | 11.1   |   |   | 11.1 |   |
| **Bitumen                in Mined Oil Sands**                       |   |     |      |   |   |   |   |   |   |   |
|   Millions                of tons                         |   |     | **19.6**  |   |   | 16.9   |   |   | 19.0 |   |
|   Average                extraction recovery *(%)*   |   |     | **90.3**  |   |   | 89.2   |   |   | 87.3 |   |
| **Bitumen                Production**2                              |   |     |      |   |   |   |   |   |   |   |
|   Millions                of barrels                      |   |     | **111.5** |   |   | 94.2   |   |   | 103.2 |   |
|   Average                upgrading yield *(%)*            |   |     | **84.9**  |   |   | 85.3   |   |   | 85.5 |   |
| **Gross                Synthetic Crude Oil Shipped**3               |   |     |      |   |   |   |   |   |   |   |
|   Millions                of barrels                      |   |     | **94.3**  |   |   | 78.1   |   |   | 87.2 |   |
| **Petro-Canada****'s                Share of Marketable Crude Oil** |   |     |      |   |   |   |   |   |   |   |
|   Millions                of bbls before royalties        |   |     | **11.3**  |   |   | 9.4    |   |   | 10.5 |   |
|   Millions                of bbls after royalties         |   |     | **10.2**  |   |   | 9.3    |   |   | 10.4 |   |

***Fort      Hills Project***

----

***Oil      Sands In Situ - Bitumen***

*in situ*

*in situ*
*in situ*

*in situ*

***Royalty      Regime***

----

***Integrated      Oil Sands Development***

***Link      to Petro-Canada's Corporate and Strategic      Priorities***

|                                                                                                      | **2006****RESULTS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | **2007                GOALS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-----------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **DELIVERING                PROFITABLE GROWTH WITH A FOCUS ON OPERATED, LONG-LIFE                ASSETS** | -  selected                    Sturgeon County for Fort Hills upgrader location 
-  submitted                    commercial application for Sturgeon Upgrader 
-  acquired                    additional oil sands leases adjacent to MacKay River and the                    existing                    Fort Hills leases 
-  Syncrude                    Stage III expansion came on-stream                                                                                                                                                                                                       | -  complete                    Fort Hills DBM and initial cost estimate, and initiate front-end                    engineering and design (FEED) 
-  receive                    regulatory decision on MacKay River expansion project 
-  continue                    ramp up of Syncrude Stage III expansion 
-  complete                    MacKay River water handling capacity upgrade and tie in a fourth                    well                    pad so that production can increase in 2008 |
| **DRIVING                FOR FIRST QUARTILE OPERATION OF OUR ASSETS**                                     | -  saw                    Syncrude non-fuel unit operating costs decrease by 5%, compared                    with                    2005 
-  saw                    MacKay River unit operating costs increase by 5%, compared with                    2005,                    reflecting the Alberta business environment  
-  saw                    Syncrude enter into a Management Services agreement with Imperial                    Oil                    Resources for operational, technical and business services 
-  maintained                    reliability at MacKay River at 92% | -  decrease                    MacKay River non-fuel unit operating costs by 10%, compared with                    2006 
-  decrease                    Syncrude non-fuel unit operating costs by 10%, compared with                    2006 
-  sustain                    MacKay River reliability at greater than 90%                                                                                                                                                                              |
| **CONTINUING                TO WORK AT BEING A RESPONSIBLE COMPANY**                                      | -  TRIF                    decreased by 46%, compared with 2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | -  maintain                    focus on TLM and Zero-Harm 
-  ensure                    regulators, First Nations and other key stakeholders affected                    by major                    projects are properly consulted and                    engaged                                                                                                                                                                                                                                   |

----

**International**

***Business      Summary and Strategy***

-  optimize          and leverage existing assets 
-  seek            out new, long-life opportunities 
-  execute              a substantial and balanced exploration              program 

***Northwest      Europe***

----

***North      Africa/Near East***

----

***Northern      Lat***
**in America**

***Business      Development Opportunities***

----

***Link      to Petro-Canada's Corporate and Strategic      Priorities***

|                                                                                                      | **2006                RESULTS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | **2007                GOALS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|-----------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **DELIVERING                PROFITABLE GROWTH WITH A FOCUS ON OPERATED, LONG-LIFE                ASSETS** | -  achieved                    first production at De Ruyter and L5b-C  
-  closed                    sale of mature Syrian producing assets 
-  acquired                    90% interest and became operator of the Ash Shaer and Cherrife                    gas                    project 
-  secured                    drilling rigs for 2007 and 2008 exploration programs 
-  awarded                    Sirte licence in Libyan third round EPSA IV auction 
                                                                                                                                                                                | -  ramp                    up Buzzard and L5b-C to full production 
-  achieve                    first production at Saxon in the U.K. sector of the North Sea                    by year                    end  
-  participate                    in up to a 17-well exploration drilling program, (depending on                    rig                    arrival dates) with balanced risk profile over the next 18                    months 
-  commence                    field appraisal and project design activities on Ash Shaer and                    Cherrife                    development 
-  establish                    a Libyan exploration program on the newly acquired Sirte exploration                    block 
-  actively                    pursue LNG supply opportunities |
| **DRIVING                FOR FIRST QUARTILE OPERATION OF OUR ASSETS**                                     | -  achieved                    more than 95% uptime on Hanze platform 
-  achieved                    full production capacity at De Ruyter platform ahead of schedule                     
-  seconded                    specialists to support Libyan operations  
-  improved                    Scott platform reliability and uptime by 33%, compared with                    2005                                                                                                                                                                                                                                                              | -  maintain                    excellent reliability at De Ruyter platform 
-  optimize                    production capacity on Triton area assets by implementing                    recommendations from de-bottlenecking study                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| **CONTINUING                TO WORK AT BEING A RESPONSIBLE COMPANY**                                      | -  had                    nine recordable injuries in 2006, compared with 14 in 2005, but                    TRIF                    rose to 0.8 in 2006, compared with 0.62 in 2005, reflecting fewer                    person                    hours worked 
-  achieved                    five years of continuous operations on the Hanze platform without                    a                    lost-time incident 
-  provided                    safety training and equipment to fishermen in Trinidad and Tobago                    as                    part of community liaison activities during seismic                    operations | -  maintain                    focus on TRIF and increase leadership visibility of Zero-Harm                    effort 
-  reduce                    oil in produced water at Triton 
-  collaborate                    with local stakeholders in Trinidad and Tobago to minimize impact                    of                    offshore drilling                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

***Discontinued      Operations***

----

**Upstream      Production and Prices**

**AVERAGE      DAILY PRODUCTION OF CRUDE OIL, NGL,**

**BITUMEN,      SYNTHETIC CRUDE OIL AND NATURAL GAS**

|                                                                                                                                             |   | Years                Ended December 31, |      |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|-----------|
|                                                                                                                                             |   | **2006**                                     |      | 2005 |   | 2004 |   |
|                                                                                                                                             |   | **Before****Royalties**                      |      | **After****Royalties** |   | BeforeRoyalties |   | AfterRoyalties |   | BeforeRoyalties |   | AfterRoyalties |   |
| **Crude                oil and equivalents***  (thousands                of barrels/day - Mbbl/d)*                                     |   |                                         |      |   |   |   |   |   |   |   |   |   |   |
| East                Coast Oil                                                                                                                    |   |                                         | **72.7**  |   |   | **68.5** |   |   | 75.3 |   |   | 69.6 |   |   | 78.2 |   |   | 75.1 |   |
| Oil                Sands1                                                                                                                        |   |                                         | **52.2**  |   |   | **48.8** |   |   | 47.0 |   |   | 46.5 |   |   | 45.2 |   |   | 44.8 |   |
| North                American Natural Gas                                                                                                        |   |                                         | **14.2**  |   |   | **10.8** |   |   | 14.7 |   |   | 11.2 |   |   | 15.3 |   |   | 11.4 |   |
| Northwest                Europe                                                                                                                  |   |                                         | **33.2**  |   |   | **33.2** |   |   | 33.7 |   |   | 33.7 |   |   | 40.4 |   |   | 40.4 |   |
| North                Africa/Near East                                                                                                            |   |                                         | **49.4**  |   |   | **44.7** |   |   | 49.8 |   |   | 44.0 |   |   | 50.9 |   |   | 43.7 |   |
| **Total                crude oil and equivalents**                                                                                               |   |                                         | **221.7** |   |   | **206.0** |   |   | 220.5 |   |   | 205.0 |   |   | 230.0 |   |   | 215.4 |   |
| **Natural                gas***(MMcf/d)*                                                                                                         |   |                                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| North                American Natural Gas                                                                                                        |   |                                         | **616**   |   |   | **489** |   |   | 668 |   |   | 512 |   |   | 695 |   |   | 530 |   |
| Northwest                Europe                                                                                                                  |   |                                         | **63**    |   |   | **63** |   |   | 66 |   |   | 66 |   |   | 85 |   |   | 85 |   |
| Northern                Latin America                                                                                                            |   |                                         | **63**    |   |   | **32** |   |   | 72 |   |   | 29 |   |   | 72 |   |   | 51 |   |
| **Total                natural gas**                                                                                                             |   |                                         | **742**   |   |   | **584** |   |   | 806 |   |   | 607 |   |   | 852 |   |   | 666 |   |
| **Total                production from continuing                operations**2** ***(thousands**of barrels of oil equivalent/day - Mboe/d)* |   |                                         | **345**   |   |   | **303** |   |   | 355 |   |   | 306 |   |   | 372 |   |   | 326 |   |
| **Discontinued                operations**                                                                                                       |   |                                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Crude                oil and NGL *(Mbbl/d)*                                                                                                      |   |                                         | **5.2**   |   |   | **1.4** |   |   | 65.9 |   |   | 20.3 |   |   | 75.7 |   |   | 23.7 |   |
| Natural                gas *(MMcf/d)*                                                                                                            |   |                                         | **2**     |   |   | **-** |   |   | 25 |   |   | 4 |   |   | 21 |   |   | 3 |   |
| **Total                production from discontinued                operations**2** ***(Mboe/d****)***                                       |   |                                         | **6**     |   |   | **1** |   |   | 70 |   |   | 21 |   |   | 79 |   |   | 24 |   |
| **Total                production**2 *(Mboe/d)*                                                                                             |   |                                         | **351**   |   |   | **304** |   |   | 425 |   |   | 327 |   |   | 451 |   |   | 350 |   |
| Proved                oil and NGL reserves3, 4 *(millions of barrels -                MMbbls)*                                                   |   |                                         | **950**   |   |   | **841** |   |   | 866 |   |   | 733 |   |   | 801 |   |   | 674 |   |
| Proved                natural gas reserves *(trillions of cubic feet -                Tcf)*4                                                |   |                                         | **1.9**   |   |   | **1.5** |   |   | 2.2 |   |   | 1.7 |   |   | 2.5 |   |   | 2.0 |   |

----

**AVERAGE      DAILY PRODUCTION OF CRUDE OIL, NGL,**

**BITUMEN,      SYNTHETIC CRUDE OIL AND NATURAL GAS**

**BEFORE      ROYALTIES BY QUARTER**

|                                                                                                     |   | **                    2006****                    Three Months Ended** |      |                     2005                    Three Months Ended |   |
|----------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------|-----------|------------------------------------------------------------------------------------|--------|
|                                                                                                     |   | **Mar.                  31**                                                               |      | **June                  30**                                                       |   | **Sept.                  30** |   | **Dec.                  31** |   | Mar.                  31 |   | June                  30 |   | Sept.                  30 |   | Dec.                  31 |   |
| **Crude                  oil and equivalents***(Mbbl/d)*                                                 |   |                                                                                       |      |                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| East                  Coast Oil                                                                          |   |                                                                                       | **79.4**  |                                                                               |   | **64.1** |   |   | **62.3** |   |   | **84.7** |   |   | 77.9 |   |   | 77.8 |   |   | 64.7 |   |   | 81.1 |   |
| Oil                  Sands1                                                                              |   |                                                                                       | **45.4**  |                                                                               |   | **45.6** |   |   | **59.0** |   |   | **58.2** |   |   | 38.3 |   |   | 48.9 |   |   | 52.1 |   |   | 48.3 |   |
| North                  American Natural Gas                                                              |   |                                                                                       | **14.7**  |                                                                               |   | **14.2** |   |   | **14.2** |   |   | **13.8** |   |   | 16.2 |   |   | 14.5 |   |   | 14.0 |   |   | 14.0 |   |
| Northwest                  Europe                                                                        |   |                                                                                       | **34.8**  |                                                                               |   | **31.3** |   |   | **26.5** |   |   | **40.7** |   |   | 34.3 |   |   | 26.3 |   |   | 38.7 |   |   | 35.6 |   |
| North                  Africa/Near East                                                                  |   |                                                                                       | **50.7**  |                                                                               |   | **49.8** |   |   | **49.7** |   |   | **47.6** |   |   | 48.1 |   |   | 49.7 |   |   | 50.4 |   |   | 50.9 |   |
| **Total                  crude oil and equivalents**                                                     |   |                                                                                       | **225.0** |                                                                               |   | **205.0** |   |   | **211.7** |   |   | **245.0** |   |   | 214.8 |   |   | 217.2 |   |   | 219.9 |   |   | 229.9 |   |
| **Natural                  gas***(MMcf/d)*                                                               |   |                                                                                       |      |                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| North                  American Natural Gas                                                              |   |                                                                                       | **635**   |                                                                               |   | **605** |   |   | **611** |   |   | **615** |   |   | 702 |   |   | 654 |   |   | 666 |   |   | 649 |   |
| Northwest                  Europe                                                                        |   |                                                                                       | **78**    |                                                                               |   | **65** |   |   | **50** |   |   | **59** |   |   | 78 |   |   | 61 |   |   | 58 |   |   | 65 |   |
| Northern                  Latin America                                                                  |   |                                                                                       | **66**    |                                                                               |   | **56** |   |   | **64** |   |   | **65** |   |   | 75 |   |   | 74 |   |   | 72 |   |   | 65 |   |
| **Total                  natural gas**                                                                   |   |                                                                                       | **779**   |                                                                               |   | **726** |   |   | **725** |   |   | **739** |   |   | 855 |   |   | 789 |   |   | 796 |   |   | 779 |   |
| **Total                  production from continuing                  operations**2 *(Mboe/d)*       |   |                                                                                       | **355**   |                                                                               |   | **326** |   |   | **333** |   |   | **368** |   |   | 357 |   |   | 349 |   |   | 353 |   |   | 360 |   |
| **Discontinued                  operations**                                                             |   |                                                                                       |      |                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Crude                  oil and NGL *(Mbbl/d)*                                                            |   |                                                                                       | **20.6**  |                                                                               |   | **-** |   |   | **-** |   |   | **-** |   |   | 68.9 |   |   | 67.1 |   |   | 65.2 |   |   | 62.4 |   |
| Natural                  gas *(MMcf/d)*                                                                  |   |                                                                                       | **8**     |                                                                               |   | **-** |   |   | **-** |   |   | **-** |   |   | 28 |   |   | 26 |   |   | 25 |   |   | 24 |   |
| **Total                  production from discontinued                  operations**2** ***(Mboe/d)* |   |                                                                                       | **22**    |                                                                               |   | **-** |   |   | **-** |   |   | **-** |   |   | 74 |   |   | 71 |   |   | 69 |   |   | 66 |   |
| **Total                  production**2** ***(Mboe/d)*                                               |   |                                                                                       | **377**   |                                                                               |   | **326** |   |   | **333** |   |   | **368** |   |   | 431 |   |   | 420 |   |   | 422 |   |   | 426 |   |

----

**AVERAGE      DAILY PRODUCTION OF CRUDE OIL, NGL,**

**BITUMEN,      SYNTHETIC CRUDE OIL AND NATURAL GAS**

**AFTER      ROYALTIES BY QUARTER**

|                                                                                                 |   | **                 2006****                 Three Months Ended** |      |                  2005                 Three Months Ended |   |
|------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|-----------|--------------------------------------------------------------------|--------|
|                                                                                                 |   | **Mar. 31**                                                           |      | **June 30**                                                   |   | **Sept. 30** |   | **Dec. 31** |   | Mar. 31 |   | June 30 |   | Sept. 30 |   | Dec. 31 |   |
| **Crude                oil and equivalents***(Mbbl/d)*                                               |   |                                                                       |      |                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| East                Coast Oil                                                                        |   |                                                                       | **71.1**  |                                                               |   | **59.8** |   |   | **60.4** |   |   | **82.2** |   |   | 74.5 |   |   | 73.6 |   |   | 60.4 |   |   | 70.4 |   |
| Oil                Sands1                                                                            |   |                                                                       | **42.8**  |                                                               |   | **42.3** |   |   | **54.1** |   |   | **56.2** |   |   | 37.9 |   |   | 48.4 |   |   | 51.6 |   |   | 47.8 |   |
| North                American Natural Gas                                                            |   |                                                                       | **11.3**  |                                                               |   | **10.7** |   |   | **11.0** |   |   | **10.3** |   |   | 11.9 |   |   | 10.9 |   |   | 10.6 |   |   | 10.8 |   |
| Northwest                Europe                                                                      |   |                                                                       | **34.8**  |                                                               |   | **31.3** |   |   | **26.5** |   |   | **40.7** |   |   | 34.3 |   |   | 26.3 |   |   | 38.7 |   |   | 35.6 |   |
| North                Africa/Near East                                                                |   |                                                                       | **45.7**  |                                                               |   | **45.2** |   |   | **44.9** |   |   | **43.0** |   |   | 44.6 |   |   | 41.7 |   |   | 45.0 |   |   | 46.8 |   |
| **Total                crude oil and equivalents**                                                   |   |                                                                       | **205.7** |                                                               |   | **189.3** |   |   | **196.9** |   |   | **232.4** |   |   | 203.2 |   |   | 200.9 |   |   | 206.3 |   |   | 211.4 |   |
| **Natural                gas***(MMcf/d)*                                                             |   |                                                                       |      |                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| North                American Natural Gas                                                            |   |                                                                       | **487**   |                                                               |   | **491** |   |   | **509** |   |   | **481** |   |   | 534 |   |   | 503 |   |   | 527 |   |   | 488 |   |
| Northwest                Europe                                                                      |   |                                                                       | **78**    |                                                               |   | **65** |   |   | **50** |   |   | **59** |   |   | 78 |   |   | 61 |   |   | 58 |   |   | 65 |   |
| Northern                Latin America                                                                |   |                                                                       | **32**    |                                                               |   | **28** |   |   | **34** |   |   | **32** |   |   | 38 |   |   | 27 |   |   | 27 |   |   | 25 |   |
| **Total                natural gas**                                                                 |   |                                                                       | **597**   |                                                               |   | **584** |   |   | **593** |   |   | **572** |   |   | 650 |   |   | 591 |   |   | 612 |   |   | 578 |   |
| **Total                production from continuing                operations**2 *(Mboe/d)*       |   |                                                                       | **305**   |                                                               |   | **287** |   |   | **296** |   |   | **328** |   |   | 312 |   |   | 299 |   |   | 308 |   |   | 308 |   |
| **Discontinued                operations**                                                           |   |                                                                       |      |                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Crude                oil and NGL *(Mbbl/d)*                                                          |   |                                                                       | **5.4**   |                                                               |   | **-** |   |   | **-** |   |   | **-** |   |   | 22.6 |   |   | 20.0 |   |   | 19.3 |   |   | 19.4 |   |
| Natural                gas *(MMcf/d)*                                                                |   |                                                                       | **1**     |                                                               |   | **-** |   |   | **-** |   |   | **-** |   |   | 5 |   |   | 4 |   |   | 4 |   |   | 4 |   |
| **Total                production from discontinued                operations**2** ***(Mboe/d)* |   |                                                                       | **6**     |                                                               |   | **-** |   |   | **-** |   |   | **-** |   |   | 23 |   |   | 21 |   |   | 20 |   |   | 20 |   |
| **Total                production**2** ***(Mboe/d)*                                             |   |                                                                       | **311**   |                                                               |   | **287** |   |   | **296** |   |   | **328** |   |   | 335 |   |   | 320 |   |   | 328 |   |   | 328 |   |

----

***Production      Outlook***

**CONSOLIDATED      PRODUCTION FROM CONTINUING OPERATIONS NET**

*(Mboe/d)*

|                                                    |   | **2006                Actual** |    | 2007                Outlook (+/-) |   |
|---------------------------------------------------------|--------|--------------------------------|---------|-----------------------------------|--------|
| **North                American Natural Gas**           |   |                           |    |                              |   |
| -                Natural gas                            |   |                           | **103** |                              |   | 97 |   |
| -                Liquids                                |   |                           | **14**  |                              |   | 13 |   |
| **East                Coast Oil**                       |   |                           | **73**  |                              |   | 87 |   |
| **Oil                Sands**                            |   |                           |    |                              |   |   |   |
| -                Syncrude                               |   |                           | **31**  |                              |   | 34 |   |
| -                MacKay River                           |   |                           | **21**  |                              |   | 24 |   |
| **International**                                       |   |                           |    |                              |   |   |   |
| -                North Africa/Near                East1 |   |                           | **49**  |                              |   | 49 |   |
| -                Northwest                Europe        |   |                           | **44**  |                              |   | 85 |   |
| -                Northern Latin                America  |   |                           | **10**  |                              |   | 11 |   |
| **Total                from continuing operations**     |   |                           | **345** |                              |   | 390                - 420 |   |

----

**AVERAGE        PRICES FOR CRUDE OIL, NGL,**

**BITUMEN,        SYNTHETIC CRUDE OIL AND NATURAL GAS**

|                                                                                                                                 |   | Years                  Ended December 31, |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|
| Average                  annual price received                                                                                       |   | **2006**                                  |   |  2005 |   |  2004 |
| **Crude                  oil and                  equivalents** *($/bbl)*                                                       |   |                                      |   |   |   |   |
| East                  Coast Oil                                                                                                      |   | **$**                                     | **71.12** |   | $ | 63.15 |   | $ | 48.39 |
| Oil                  Sands                                                                                                           |   |                                      | **54.60** |   |   | 46.90 |   |   | 39.90 |
| North                  American Natural Gas                                                                                          |   |                                      | **64.87** |   |   | 59.47 |   |   | 47.02 |
| Northwest                  Europe                                                                                                    |   |                                      | **72.67** |   |   | 66.13 |   |   | 50.37 |
| North                  Africa/Near East1                                                                                        |   |                                      | **72.70** |   |   | 65.79 |   |   | 48.28 |
| **Total                  crude oil and equivalents from continuing                  operations**                                     |   |                                      | **67.38** |   |   | 60.45 |   |   | 46.94 |
| Discontinued                  operations                                                                                             |   |                                      | **71.84** |   |   | 61.82 |   |   | 46.70 |
| **Total                  crude oil and equivalents**                                                                                 |   | **$**                                     | **67.48** |   | $ | 60.77 |   | $ | 46.88 |
| **North                  America** *($/bbl)*                                                                                    |   |                                      |   |   |   |   |   |   |   |
| Average                  crude oil and NGL sale price                                                                                |   | **$**                                     | **70.10** |   | $ | 62.55 |   | $ | 48.17 |
| Average                  bitumen sale price                                                                                          |   |                                      | **28.93** |   |   | 18.53 |   |   | 18.37 |
| Average                  synthetic crude oil sale price                                                                              |   |                                      | **72.13** |   |   | 70.41 |   |   | 52.40 |
| **North                  America average crude oil and NGL, bitumen and                  synthetic crude oil****  price**  |   | **$**                                     | **64.28** |   | $ | 57.18 |   | $ | 45.47 |
| **International** *($/bbl)*                                                                                                     |   |                                      |   |   |   |   |   |   |   |
| Northwest                  Europe - average crude oil and NGL sale price                                                             |   | **$**                                     | **72.67** |   | $ | 66.13 |   | $ | 50.37 |
| North                  Africa/Near East - average crude oil and NGL sale                  price1                                     |   |                                      | **72.70** |   |   | 65.79 |   |   | 48.28 |
| **International                  - average crude oil and NGL sale price                  from continuing****  operations** |   | **$**                                     | **72.69** |   | $ | 65.93 |   | $ | 49.22 |
| **Natural                  gas** *($/Mcf)*                                                                                      |   |                                      |   |   |   |   |   |   |   |
| North                  American Natural Gas                                                                                          |   | **$**                                     | **6.85** |   | $ | 8.47 |   | $ | 6.72 |
| Northwest                  Europe                                                                                                    |   |                                      | **8.91** |   |   | 7.35 |   |   | 5.65 |
| Northern                  Latin America                                                                                              |   |                                      | **5.13** |   |   | 6.62 |   |   | 4.81 |
| **Total                  natural gas from continuing                  operations**                                                   |   |                                      | **6.96** |   |   | 8.30 |   |   | 6.53 |
| Discontinued                  operations                                                                                             |   |                                      | **7.94** |   |   | 6.43 |   |   | 4.81 |
| **Total                  natural gas**                                                                                               |   | **$**                                     | **6.96** |   | $ | 8.24 |   | $ | 6.49 |

----

**NORTH        AMERICAN NATURAL GAS**

*($/Mcfe,        unless otherwise indicated)*

|                                                                           |   | **2006                  Three Months Ended** |      | **Total**                    |   | 2005                  Three Months Ended |   | Total                        |      | Total    |   |
|--------------------------------------------------------------------------------|--------|----------------------------------------------|-----------|------------------------------|--------|------------------------------------------|--------|------------------------------|-----------|----------|--------|
|                                                                           |   | **Mar.                  31**                 |      | **June                  30** |   | **Sept.                  30**            |   | **Dec.                  31** |      | **2006** |   | Mar.                  31 |   | June                  30 |   | Sept.                  30 |   | Dec.                  31 |   | 2005 |   | 20041 |   |
| Average                  price received                                        |   | **$**                                        | **8.93**  |                         | **$**  | **6.87**                                 |   | **$**                        | **6.63**  |     | **$**  | **6.89** |   | **$** | **7.34** |   | $ | 6.95 |   | $ | 7.56 |   | $ | 8.56 |   | $ | 11.72 |   | $ | 8.67 |   | $ | 6.89 |   |
| Royalties                                                                      |   |                                         | **(2.08** | **)**                        |   | **(1.37**                                | **)**  |                         | **(1.19** | **)**    |   | **(1.55** | **)** |   | **(1.55** | **)** |   | (1.68 | ) |   | (1.75 | ) |   | (1.83 | ) |   | (2.89 | ) |   | (2.03 | ) |   | (1.65 | ) |
| Operating                  expenses                                            |   |                                         | **(0.97** | **)**                        |   | **(1.15**                                | **)**  |                         | **(1.21** | **)**    |   | **(1.23** | **)** |   | **(1.14** | **)** |   | (0.77 | ) |   | (0.91 | ) |   | (0.98 | ) |   | (1.14 | ) |   | (0.95 | ) |   | (0.76 | ) |
| Netback                                                                        |   |                                         | **5.88**  |                         |   | **4.35**                                 |   |                         | **4.23**  |     |   | **4.11** |   |   | **4.65** |   |   | 4.50 |   |   | 4.90 |   |   | 5.75 |   |   | 7.69 |   |   | 5.69 |   |   | 4.48 |   |
| Overhead                  expenses (G&A)2                                  |   |                                         | **(0.24** | **)**                        |   | **(0.28**                                | **)**  |                         | **(0.23** | **)**    |   | **(0.25** | **)** |   | **(0.25** | **)** |   | (0.16 | ) |   | (0.23 | ) |   | (0.21 | ) |   | (0.19 | ) |   | (0.20 | ) |   | (0.19 | ) |
| Netback                  after overhead expenses                               |   |                                         | **5.64**  |                         |   | **4.07**                                 |   |                         | **4.00**  |     |   | **3.86** |   |   | **4.40** |   |   | 4.34 |   |   | 4.67 |   |   | 5.54 |   |   | 7.50 |   |   | 5.49 |   |   | 4.29 |   |
| Processing                  and other income                                   |   |                                         | **0.03**  |                         |   | **0.09**                                 |   |                         | **0.06**  |     |   | **0.06** |   |   | **0.06** |   |   | 0.08 |   |   | (0.01 | ) |   | 0.01 |   |   | 0.18 |   |   | 0.07 |   |   | 0.06 |   |
| Exploration                  expenses                                          |   |                                         | **(0.52** | **)**                        |   | **(0.28**                                | **)**  |                         | **(0.22** | **)**    |   | **(0.46** | **)** |   | **(0.37** | **)** |   | (0.55 | ) |   | (0.24 | ) |   | (0.46 | ) |   | (0.28 | ) |   | (0.39 | ) |   | (0.30 | ) |
| Depletion,                  depreciation and amortization                      |   |                                         | **(1.50** | **)**                        |   | **(1.56**                                | **)**  |                         | **(1.56** | **)**    |   | **(1.58** | **)** |   | **(1.55** | **)** |   | (1.29 | ) |   | (1.32 | ) |   | (1.30 | ) |   | (1.31 | ) |   | (1.30 | ) |   | (1.10 | ) |
| Income                  and other taxes                                        |   |                                         | **(1.26** | **)**                        |   | **(0.66**                                | **)**  |                         | **(0.73** | **)**    |   | **(0.65** | **)** |   | **(0.83** | **)** |   | (0.90 | ) |   | (1.44 | ) |   | (1.52 | ) |   | (1.92 | ) |   | (1.44 | ) |   | (1.10 | ) |
| **Net                  earnings**                                              |   | **$**                                        | **2.39**  |                         | **$**  | **1.66**                                 |   | **$**                        | **1.55**  |     | **$**  | **1.23** |   | **$** | **1.71** |   | $ | 1.68 |   | $ | 1.66 |   | $ | 2.27 |   | $ | 4.17 |   | $ | 2.43 |   | $ | 1.85 |   |
| Production,                  net *(billion cubic feet equivalent - Bcfe)* |   |                                         | **65.0**  |                         |   | **62.8**                                 |   |                         | **64.0**  |     |   | **64.1** |   |   | **255.9** |   |   | 71.9 |   |   | 67.4 |   |   | 69.0 |   |   | 67.4 |   |   | 275.7 |   |   | 288.0 |   |

**EAST          COAST OIL**

*($/bbl,          unless otherwise indicated)*

|                                                        |   | **2006                    Three Months Ended** |       | **Total**                      |   | 2005                    Three Months Ended |   | Total                          |       | Total    |   |
|-------------------------------------------------------------|--------|------------------------------------------------|------------|--------------------------------|--------|--------------------------------------------|--------|--------------------------------|------------|----------|--------|
|                                                        |   | **Mar.                    31**                 |       | **June                    30** |   | **Sept.                    30**            |   | **Dec.                    31** |       | **2006** |   | Mar.                    31 |   | June                    30 |   | Sept.                    30 |   | Dec.                    31 |   | 2005 |   | 2004 |   |
| Average                    price received                   |   | **$**                                          | **69.21**  |                           | **$**  | **75.85**                                  |   | **$**                          | **74.26**  |     | **$**  | **66.32** |   | **$** | **71.12** |   | $ | 55.08 |   | $ | 61.41 |   | $ | 73.37 |   | $ | 64.23 |   | $ | 63.15 |   | $ | 48.39 |   |
| Royalties                                                   |   |                                           | **(7.15**  | **)**                          |   | **(6.79**                                  | **)**  |                           | **(2.42**  | **)**    |   | **(2.02** | **)** |   | **(4.54** | **)** |   | (2.35 | ) |   | (3.33 | ) |   | (4.76 | ) |   | (8.44 | ) |   | (4.78 | ) |   | (1.89 | ) |
| Operating                    expenses                       |   |                                           | **(5.07**  | **)**                          |   | **(7.49**                                  | **)**  |                           | **(13.79** | **)**    |   | **(4.32** | **)** |   | **(7.27** | **)** |   | (3.11 | ) |   | (3.85 | ) |   | (5.42 | ) |   | (5.21 | ) |   | (4.37 | ) |   | (2.72 | ) |
| Netback                                                     |   |                                           | **56.99**  |                           |   | **61.57**                                  |   |                           | **58.05**  |     |   | **59.98** |   |   | **59.31** |   |   | 49.62 |   |   | 54.23 |   |   | 63.19 |   |   | 50.58 |   |   | 54.00 |   |   | 43.78 |   |
| Overhead                    expenses (G&A)2             |   |                                           | **(0.26**  | **)**                          |   | **(0.91**                                  | **)**  |                           | **(0.42**  | **)**    |   | **(0.27** | **)** |   | **(0.44** | **)** |   | (0.09 | ) |   | 0.09 |   |   | - |   |   | (0.54 | ) |   | (0.15 | ) |   | (0.17 | ) |
| Netback                    after overhead expenses          |   |                                           | **56.73**  |                           |   | **60.66**                                  |   |                           | **57.63**  |     |   | **59.71** |   |   | **58.87** |   |   | 49.53 |   |   | 54.32 |   |   | 63.19 |   |   | 50.04 |   |   | 53.85 |   |   | 43.61 |   |
| Processing                    and other income              |   |                                           | **(0.02**  | **)**                          |   | **(0.37**                                  | **)**  |                           | **3.83**   |     |   | **1.70** |   |   | **1.20** |   |   | 0.01 |   |   | - |   |   | 0.46 |   |   | - |   |   | 0.10 |   |   | 1.66 |   |
| Depletion,                    depreciation and amortization |   |                                           | **(8.82**  | **)**                          |   | **(8.20**                                  | **)**  |                           | **(8.28**  | **)**    |   | **(9.68** | **)** |   | **(8.82** | **)** |   | (9.65 | ) |   | (10.06 | ) |   | (9.97 | ) |   | (9.06 | ) |   | (9.66 | ) |   | (9.05 | ) |
| Income                    and other taxes                   |   |                                           | **(16.49** | **)**                          |   | **(11.13**                                 | **)**  |                           | **(18.13** | **)**    |   | **(17.19** | **)** |   | **(15.87** | **)** |   | (11.63 | ) |   | (15.34 | ) |   | (17.43 | ) |   | (14.65 | ) |   | (14.66 | ) |   | (11.58 | ) |
| **Net                    earnings**                         |   | **$**                                          | **31.40**  |                           | **$**  | **41.70**                                  |   | **$**                          | **35.05**  |     | **$**  | **34.54** |   | **$** | **35.38** |   | $ | 28.26 |   | $ | 28.92 |   | $ | 36.25 |   | $ | 26.33 |   | $ | 29.63 |   | $ | 24.64 |   |
| Production,                    net *(MMbbls)*               |   |                                           | **7.2**    |                           |   | **5.8**                                    |   |                           | **5.7**    |     |   | **7.8** |   |   | **26.5** |   |   | 7.0 |   |   | 7.1 |   |   | 6.0 |   |   | 7.5 |   |   | 27.6 |   |   | 28.6 |   |

----

**SYNCRUDE**

*($/bbl,      unless otherwise indicated)*

|                                                    |   | **2006                Three Months Ended** |       | **Total**                  |   | 2005                Three Months Ended |   | Total                      |       | Total    |   |
|---------------------------------------------------------|--------|--------------------------------------------|------------|----------------------------|--------|----------------------------------------|--------|----------------------------|------------|----------|--------|
|                                                    |   | **Mar.                31**                 |       | **June                30** |   | **Sept.                30**            |   | **Dec.                31** |       | **2006** |   | Mar.                31 |   | June                30 |   | Sept.                30 |   | Dec.                31 |   | 2005 |   | 2004 |   |
| Average                price received                   |   | **$**                                      | **69.29**  |                       | **$**  | **78.38**                              |   | **$**                      | **77.91**  |     | **$**  | **63.68** |   | **$** | **72.13** |   | $ | 64.40 |   | $ | 67.08 |   | $ | 77.16 |   | $ | 70.82 |   | $ | 70.41 |   | $ | 52.40 |   |
| Royalties                                               |   |                                       | **(6.72**  | **)**                      |   | **(8.45**                              | **)**  |                       | **(8.48**  | **)**    |   | **(4.59** | **)** |   | **(6.98** | **)** |   | (0.65 | ) |   | (0.66 | ) |   | (0.78 | ) |   | (0.71 | ) |   | (0.71 | ) |   | (0.61 | ) |
| Operating                expenses                       |   |                                       | **(43.87** | **)**                      |   | **(32.77**                             | **)**  |                       | **(21.85** | **)**    |   | **(26.26** | **)** |   | **(30.00** | **)** |   | (44.24 | ) |   | (26.70 | ) |   | (26.95 | ) |   | (34.04 | ) |   | (31.90 | ) |   | (21.13 | ) |
| Netback                                                 |   |                                       | **18.70**  |                       |   | **37.16**                              |   |                       | **47.58**  |     |   | **32.83** |   |   | **35.15** |   |   | 19.51 |   |   | 39.72 |   |   | 49.43 |   |   | 36.07 |   |   | 37.80 |   |   | 30.66 |   |
| Processing                and other income              |   |                                       | **-**      |                       |   | **-**                                  |   |                       | **5.96**   |     |   | **-** |   |   | **1.65** |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Depletion,                depreciation and amortization |   |                                       | **(2.70**  | **)**                      |   | **(2.77**                              | **)**  |                       | **(3.79**  | **)**    |   | **(5.15** | **)** |   | **(3.74** | **)** |   | (1.89 | ) |   | (1.89 | ) |   | (1.96 | ) |   | (2.04 | ) |   | (1.95 | ) |   | (1.79 | ) |
| Income                and other taxes                   |   |                                       | **(5.38**  | **)**                      |   | **3.00**                               |   |                       | **(16.81** | **)**    |   | **(9.32** | **)** |   | **(7.75** | **)** |   | (5.18 | ) |   | (13.64 | ) |   | (15.47 | ) |   | (11.45 | ) |   | (12.03 | ) |   | (9.31 | ) |
| **Net                earnings**                         |   | **$**                                      | **10.62**  |                       | **$**  | **37.39**                              |   | **$**                      | **32.94**  |     | **$**  | **18.36** |   | **$** | **25.31** |   | $ | 12.44 |   | $ | 24.19 |   | $ | 32.00 |   | $ | 22.58 |   | $ | 23.82 |   | $ | 19.56 |   |
| Production,                net *(MMbbls)*               |   |                                       | **2.2**    |                       |   | **2.6**                                |   |                       | **3.1**    |     |   | **3.4** |   |   | **11.3** |   |   | 1.7 |   |   | 2.5 |   |   | 2.6 |   |   | 2.5 |   |   | 9.3 |   |   | 10.5 |   |

**MACKAY      RIVER**

*($/bbl,      unless otherwise indicated)*

|                                                    |   | **2006                Three Months Ended** |       | **Total**                  |   | 2005                Three Months Ended |   | Total                      |       | Total    |   |
|---------------------------------------------------------|--------|--------------------------------------------|------------|----------------------------|--------|----------------------------------------|--------|----------------------------|------------|----------|--------|
|                                                    |   | **Mar.                31**                 |       | **June                30** |   | **Sept.                30**            |   | **Dec.                31** |       | **2006** |   | Mar.                31 |   | June                30 |   | Sept.                30 |   | Dec.                31 |   | 2005 |   | 2004 |   |
| Average                price received                   |   | **$**                                      | **11.24**  |                       | **$**  | **39.37**                              |   | **$**                      | **39.13**  |     | **$**  | **25.84** |   | **$** | **28.93** |   | $ | 10.88 |   | $ | 13.92 |   | $ | 31.98 |   | $ | 15.27 |   | $ | 18.61 |   | $ | 18.37 |   |
| Royalties                                               |   |                                       | **(0.09**  | **)**                      |   | **(0.36**                              | **)**  |                       | **(2.07**  | **)**    |   | **0.85** |   |   | **(0.49** | **)** |   | (0.08 | ) |   | (0.11 | ) |   | (0.30 | ) |   | (0.12 | ) |   | (0.16 | ) |   | (0.16 | ) |
| Operating                expenses                       |   |                                       | **(18.60** | **)**                      |   | **(21.24**                             | **)**  |                       | **(14.01** | **)**    |   | **(15.42** | **)** |   | **(16.93** | **)** |   | (14.80 | ) |   | (15.65 | ) |   | (14.08 | ) |   | (20.72 | ) |   | (16.29 | ) |   | (20.98 | ) |
| Netback                                                 |   |                                       | **(7.45**  | **)**                      |   | **17.77**                              |   |                       | **23.05**  |     |   | **11.27** |   |   | **11.51** |   |   | (4.00 | ) |   | (1.84 | ) |   | 17.60 |   |   | (5.57 | ) |   | 2.16 |   |   | (2.77 | ) |
| Overhead                expenses (G&A)2             |   |                                       | **(0.92**  | **)**                      |   | **(0.94**                              | **)**  |                       | **(0.76**  | **)**    |   | **(1.01** | **)** |   | **(0.90** | **)** |   | (0.74 | ) |   | (0.80 | ) |   | (0.69 | ) |   | (0.84 | ) |   | (0.77 | ) |   | (0.89 | ) |
| Netback                after overhead expenses          |   |                                       | **(8.37**  | **)**                      |   | **16.83**                              |   |                       | **22.29**  |     |   | **10.26** |   |   | **10.61** |   |   | (4.74 | ) |   | (2.64 | ) |   | 16.91 |   |   | (6.41 | ) |   | 1.39 |   |   | (3.66 | ) |
| Processing                and other income              |   |                                       | **0.02**   |                       |   | **(0.31**                              | **)**  |                       | **(0.03**  | **)**    |   | **(0.07** | **)** |   | **(0.05** | **)** |   | (0.51 | ) |   | 0.16 |   |   | 0.02 |   |   | - |   |   | (0.06 | ) |   | - |   |
| Exploration                expenses                     |   |                                       | **0.02**   |                       |   | **-**                                  |   |                       | **0.01**   |     |   | **(0.18** | **)** |   | **(0.04** | **)** |   | (0.44 | ) |   | (0.04 | ) |   | 0.03 |   |   | (0.07 | ) |   | (0.12 | ) |   | (0.03 | ) |
| Depletion,                depreciation and amortization |   |                                       | **(4.16**  | **)**                      |   | **(3.16**                              | **)**  |                       | **(5.22**  | **)**    |   | **(5.51** | **)** |   | **(4.63** | **)** |   | (3.18 | ) |   | (3.18 | ) |   | (3.08 | ) |   | (3.53 | ) |   | (3.24 | ) |   | (3.16 | ) |
| Income                and other taxes                   |   |                                       | **3.87**   |                       |   | **(0.87**                              | **)**  |                       | **(6.02**  | **)**    |   | **(1.55** | **)** |   | **(1.43** | **)** |   | 2.63 |   |   | 1.22 |   |   | (4.37 | ) |   | 2.70 |   |   | 0.35 |   |   | 1.94 |   |
| **Net                earnings (loss)**                  |   | **$**                                      | **(8.62**  | **)**                      | **$**  | **12.49**                              |   | **$**                      | **11.03**  |     | **$**  | **2.95** |   | **$** | **4.46** |   | $ | (6.24 | ) | $ | (4.48 | ) | $ | 9.51 |   | $ | (7.31 | ) | $ | (1.68 | ) | $ | (4.91 | ) |
| Production,                net *(MMbbls)*               |   |                                       | **1.9**    |                       |   | **1.5**                                |   |                       | **2.3**    |     |   | **2.0** |   |   | **7.7** |   |   | 1.7 |   |   | 1.9 |   |   | 2.2 |   |   | 2.0 |   |   | 7.8 |   |   | 6.1 |   |

----

**NORTHWEST      EUROPE**

*($/boe,      unless otherwise indicated)*

|                                                    |   | **2006                Three Months Ended** |       | **Total**                  |   | 2005                Three Months Ended |   | Total                      |       | Total    |   |
|---------------------------------------------------------|--------|--------------------------------------------|------------|----------------------------|--------|----------------------------------------|--------|----------------------------|------------|----------|--------|
|                                                    |   | **Mar.                31**                 |       | **June                30** |   | **Sept.                30**            |   | **Dec.                31** |       | **2006** |   | Mar.                31 |   | June                30 |   | Sept.                30 |   | Dec.                31 |   | 2005 |   | 2004 |   |
| Average                price received5                  |   | **$**                                      | **68.57**  |                       | **$**  | **69.27**                              |   | **$**                      | **69.95**  |     | **$**  | **65.31** |   | **$** | **68.07** |   | $ | 53.61 |   | $ | 59.11 |   | $ | 65.82 |   | $ | 63.82 |   | $ | 60.74 |   | $ | 46.08 |   |
| Royalties                                               |   |                                       | **(1.33**  | **)**                      |   | **(0.79**                              | **)**  |                       | **(0.97**  | **)**    |   | **(0.55** | **)** |   | **(0.91** | **)** |   | - |   |   | (2.06 | ) |   | (0.96 | ) |   | (0.62 | ) |   | (0.85 | ) |   | - |   |
| Net                revenue                              |   |                                       | **67.24**  |                       |   | **68.48**                              |   |                       | **68.98**  |     |   | **64.76** |   |   | **67.16** |   |   | 53.61 |   |   | 57.05 |   |   | 64.86 |   |   | 63.20 |   |   | 59.89 |   |   | 46.08 |   |
| Operating                expenses                       |   |                                       | **(8.02**  | **)**                      |   | **(9.46**                              | **)**  |                       | **(11.29** | **)**    |   | **(9.87** | **)** |   | **(9.56** | **)** |   | (8.23 | ) |   | (10.66 | ) |   | (8.86 | ) |   | (10.99 | ) |   | (9.62 | ) |   | (7.89 | ) |
| Netback                                                 |   |                                       | **59.22**  |                       |   | **59.02**                              |   |                       | **57.69**  |     |   | **54.89** |   |   | **57.60** |   |   | 45.38 |   |   | 46.39 |   |   | 56.00 |   |   | 52.21 |   |   | 50.27 |   |   | 38.19 |   |
| Overhead                expenses (G&A)2             |   |                                       | **(2.34**  | **)**                      |   | **(2.19**                              | **)**  |                       | **(3.44**  | **)**    |   | **0.99** |   |   | **(1.55** | **)** |   | (1.54 | ) |   | (2.98 | ) |   | (2.48 | ) |   | (1.96 | ) |   | (2.20 | ) |   | (0.96 | ) |
| Netback                after overhead expenses          |   |                                       | **56.88**  |                       |   | **56.83**                              |   |                       | **54.25**  |     |   | **55.88** |   |   | **56.05** |   |   | 43.84 |   |   | 43.41 |   |   | 53.52 |   |   | 50.25 |   |   | 48.07 |   |   | 37.23 |   |
| Processing                and other income              |   |                                       | **2.07**   |                       |   | **(1.14**                              | **)**  |                       | **(0.01**  | **)**    |   | **1.44** |   |   | **0.70** |   |   | 2.62 |   |   | 0.65 |   |   | (3.26 | ) |   | 1.50 |   |   | 1.81 |   |   | (0.07 | ) |
| Exploration                expenses                     |   |                                       | **(0.75**  | **)**                      |   | **(4.61**                              | **)**  |                       | **2.02**   |     |   | **(1.44** | **)** |   | **(1.33** | **)** |   | (0.75 | ) |   | (2.06 | ) |   | (1.15 | ) |   | (1.93 | ) |   | (1.43 | ) |   | (2.25 | ) |
| Depletion,                depreciation and amortization |   |                                       | **(15.64** | **)**                      |   | **(16.20**                             | **)**  |                       | **(17.13** | **)**    |   | **(23.04** | **)** |   | **(18.22** | **)** |   | (14.31 | ) |   | (15.06 | ) |   | (15.19 | ) |   | (14.64 | ) |   | (14.79 | ) |   | (13.48 | ) |
| Income                and other taxes6                  |   |                                       | **(75.56** | **)**                      |   | **(17.59**                             | **)**  |                       | **(19.37** | **)**    |   | **(21.30** | **)** |   | **(34.68** | **)** |   | (14.17 | ) |   | (11.71 | ) |   | (14.62 | ) |   | (14.60 | ) |   | (14.50 | ) |   | (8.32 | ) |
| **Net                earnings**                         |   | **$**                                      | **(33.00** | **)**                      | **$**  | **17.29**                              |   | **$**                      | **19.76**  |     | **$**  | **11.54** |   | **$** | **2.52** |   | $ | 17.23 |   | $ | 15.23 |   | $ | 19.30 |   | $ | 20.58 |   | $ | 19.16 |   | $ | 13.11 |   |
| Production,                net *(MMboe)*                |   |                                       | **4.3**    |                       |   | **3.8**                                |   |                       | **3.2**    |     |   | **4.6** |   |   | **15.9** |   |   | 4.3 |   |   | 3.3 |   |   | 4.4 |   |   | 4.3 |   |   | 16.3 |   |   | 20.0 |   |

**NORTH      AFRICA/NEAR EAST**

*($/boe,      unless otherwise indicated)*

|                                                    |   | **2006                Three Months Ended** |       | **Total**                  |   | 2005                Three Months Ended |   | Total                      |       | Total    |   |
|---------------------------------------------------------|--------|--------------------------------------------|------------|----------------------------|--------|----------------------------------------|--------|----------------------------|------------|----------|--------|
|                                                    |   | **Mar.                31**                 |       | **June                30** |   | **Sept.                30**            |   | **Dec.                31** |       | **2006** |   | Mar.                31 |   | June                30 |   | Sept.                30 |   | Dec.                31 |   | 2005 |   | 2004 |   |
| Average                price received5                  |   | **$**                                      | **71.29**  |                       | **$**  | **77.27**                              |   | **$**                      | **74.92**  |     | **$**  | **67.15** |   | **$** | **72.70** |   | $ | 56.01 |   | $ | 69.84 |   | $ | 74.20 |   | $ | 62.44 |   | $ | 65.75 |   | $ | 48.35 |   |
| Royalties                                               |   |                                       | **(7.08**  | **)**                      |   | **(7.15**                              | **)**  |                       | **(7.25**  | **)**    |   | **(6.66** | **)** |   | **(7.01** | **)** |   | (4.04 | ) |   | (11.17 | ) |   | (8.08 | ) |   | (6.91 | ) |   | (7.59 | ) |   | (7.08 | ) |
| Net                revenue                              |   |                                       | **64.21**  |                       |   | **70.12**                              |   |                       | **67.67**  |     |   | **60.49** |   |   | **65.69** |   |   | 51.97 |   |   | 58.67 |   |   | 66.12 |   |   | 55.53 |   |   | 58.16 |   |   | 41.27 |   |
| Operating                expenses                       |   |                                       | **(5.40**  | **)**                      |   | **(3.49**                              | **)**  |                       | **(4.73**  | **)**    |   | **(6.06** | **)** |   | **(4.91** | **)** |   | (5.34 | ) |   | (3.35 | ) |   | (5.97 | ) |   | (3.39 | ) |   | (4.50 | ) |   | (5.56 | ) |
| Netback                                                 |   |                                       | **58.81**  |                       |   | **66.63**                              |   |                       | **62.94**  |     |   | **54.43** |   |   | **60.78** |   |   | 46.63 |   |   | 55.32 |   |   | 60.15 |   |   | 52.14 |   |   | 53.66 |   |   | 35.71 |   |
| Overhead                expenses (G&A)2             |   |                                       | **(0.61**  | **)**                      |   | **(0.63**                              | **)**  |                       | **(0.62**  | **)**    |   | **(1.38** | **)** |   | **(0.80** | **)** |   | (1.17 | ) |   | (0.34 | ) |   | (0.66 | ) |   | (0.82 | ) |   | (0.75 | ) |   | (1.03 | ) |
| Netback                after overhead                   |   |                                       | **58.20**  |                       |   | **66.00**                              |   |                       | **62.32**  |     |   | **53.05** |   |   | **59.98** |   |   | 45.46 |   |   | 54.98 |   |   | 59.49 |   |   | 51.32 |   |   | 52.91 |   |   | 34.68 |   |
| Processing                and other income              |   |                                       | **(0.15**  | **)**                      |   | **(0.54**                              | **)**  |                       | **0.40**   |     |   | **(0.91** | **)** |   | **(0.30** | **)** |   | 2.19 |   |   | 3.08 |   |   | 1.33 |   |   | 3.26 |   |   | 2.47 |   |   | (0.34 | ) |
| Exploration                expenses                     |   |                                       | **(0.68**  | **)**                      |   | **(0.48**                              | **)**  |                       | **(0.33**  | **)**    |   | **(0.38** | **)** |   | **(0.47** | **)** |   | (0.13 | ) |   | (1.42 | ) |   | (0.16 | ) |   | (0.41 | ) |   | (0.53 | ) |   | (0.89 | ) |
| Depletion,                depreciation and amortization |   |                                       | **(1.49**  | **)**                      |   | **(1.52**                              | **)**  |                       | **(1.54**  | **)**    |   | **(1.49** | **)** |   | **(1.51** | **)** |   | (2.33 | ) |   | (2.27 | ) |   | (2.14 | ) |   | (1.46 | ) |   | (2.04 | ) |   | (2.73 | ) |
| Income                and other taxes                   |   |                                       | **(52.74** | **)**                      |   | **(59.97**                             | **)**  |                       | **(54.16** | **)**    |   | **(48.53** | **)** |   | **(53.89** | **)** |   | (39.88 | ) |   | (47.19 | ) |   | (52.58 | ) |   | (46.26 | ) |   | (46.58 | ) |   | (26.58 | ) |
| **Net                earnings**                         |   | **$**                                      | **3.14**   |                       | **$**  | **3.49**                               |   | **$**                      | **6.69**   |     | **$**  | **1.74** |   | **$** | **3.81** |   | $ | 5.31 |   | $ | 7.18 |   | $ | 5.94 |   | $ | 6.45 |   | $ | 6.23 |   | $ | 4.14 |   |
| Production,                net *(MMboe)*                |   |                                       | **4.6**    |                       |   | **4.5**                                |   |                       | **4.6**    |     |   | **4.4** |   |   | **18.1** |   |   | 4.4 |   |   | 4.5 |   |   | 4.6 |   |   | 4.7 |   |   | 18.2 |   |   | 18.5 |   |

----

**NORTHERN      LATIN AMERICA**

*($/Mcf,      unless otherwise indicated)*

|                                                    |   | **2006                Three Months Ended** |      | **Total**                  |   | 2005                Three Months Ended |   | Total                      |      | Total    |   |
|---------------------------------------------------------|--------|--------------------------------------------|-----------|----------------------------|--------|----------------------------------------|--------|----------------------------|-----------|----------|--------|
|                                                    |   | **Mar.                31**                 |      | **June                30** |   | **Sept.                30**            |   | **Dec.                31** |      | **2006** |   | Mar.                31 |   | June                30 |   | Sept.                30 |   | Dec.                31 |   | 2005 |   | 2004 |   |
| Average                price received                   |   | **$**                                      | **6.32**  |                       | **$**  | **5.08**                               |   | **$**                      | **4.46**  |     | **$**  | **4.70** |   | **$** | **5.13** |   | $ | 5.09 |   | $ | 5.05 |   | $ | 6.90 |   | $ | 9.82 |   | $ | 6.62 |   | $ | 4.81 |   |
| Royalties                                               |   |                                       | **-**     |                       |   | **(0.49**                              | **)**  |                       | **(0.15** | **)**    |   | **(2.51** | **)** |   | **(1.26** | **)** |   | - |   |   | (4.42 | ) |   | (4.86 | ) |   | (1.83 | ) |   | (2.06 | ) |   | (1.05 | ) |
| Net                revenue                              |   |                                       | **6.32**  |                       |   | **4.59**                               |   |                       | **4.31**  |     |   | **2.19** |   |   | **3.87** |   |   | 5.09 |   |   | 0.63 |   |   | 2.04 |   |   | 7.99 |   |   | 4.56 |   |   | 3.76 |   |
| Operating                expenses                       |   |                                       | **(0.20** | **)**                      |   | **(0.16**                              | **)**  |                       | **(0.07** | **)**    |   | **(0.28** | **)** |   | **(0.18** | **)** |   | (0.22 | ) |   | (0.14 | ) |   | (0.18 | ) |   | (0.15 | ) |   | (0.17 | ) |   | (0.12 | ) |
| Netback                                                 |   |                                       | **6.12**  |                       |   | **4.43**                               |   |                       | **4.24**  |     |   | **1.91** |   |   | **3.69** |   |   | 4.87 |   |   | 0.49 |   |   | 1.86 |   |   | 7.84 |   |   | 4.39 |   |   | 3.64 |   |
| Overhead                expenses (G&A)2             |   |                                       | **(0.07** | **)**                      |   | **(0.19**                              | **)**  |                       | **(0.12** | **)**    |   | **(0.21** | **)** |   | **(0.15** | **)** |   | (0.11 | ) |   | (0.08 | ) |   | (0.08 | ) |   | (0.13 | ) |   | (0.10 | ) |   | (0.13 | ) |
| Netback                after overhead expenses          |   |                                       | **6.05**  |                       |   | **4.24**                               |   |                       | **4.12**  |     |   | **1.70** |   |   | **3.54** |   |   | 4.76 |   |   | 0.41 |   |   | 1.78 |   |   | 7.71 |   |   | 4.29 |   |   | 3.51 |   |
| Processing                and other income              |   |                                       | **-**     |                       |   | **(0.15**                              | **)**  |                       | **0.10**  |     |   | **(0.07** | **)** |   | **(0.03** | **)** |   | 0.02 |   |   | 0.08 |   |   | (0.02 | ) |   | - |   |   | 0.02 |   |   | (0.04 | ) |
| Exploration                expenses                     |   |                                       | **(0.01** | **)**                      |   | **-**                                  |   |                       | **-**     |     |   | **(0.01** | **)** |   | **(0.01** | **)** |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Depletion,                depreciation and amortization |   |                                       | **(0.73** | **)**                      |   | **(0.73**                              | **)**  |                       | **(0.73** | **)**    |   | **(0.73** | **)** |   | **(0.73** | **)** |   | (0.65 | ) |   | (0.65 | ) |   | (0.65 | ) |   | (0.65 | ) |   | (0.65 | ) |   | (0.57 | ) |
| Income                and other taxes                   |   |                                       | **(3.20** | **)**                      |   | **(2.07**                              | **)**  |                       | **(1.97** | **)**    |   | **0.13** |   |   | **(1.29** | **)** |   | (2.48 | ) |   | 1.19 |   |   | 0.54 |   |   | (4.22 | ) |   | (1.89 | ) |   | (1.62 | ) |
| **Net                earnings**                         |   | **$**                                      | **2.11**  |                       | **$**  | **1.29**                               |   | **$**                      | **1.52**  |     | **$**  | **1.02** |   | **$** | **1.48** |   | $ | 1.65 |   | $ | 1.03 |   | $ | 1.65 |   | $ | 2.84 |   | $ | 1.77 |   | $ | 1.28 |   |
| Production,                net *(Bcf)*                  |   |                                       | **5.9**   |                       |   | **5.1**                                |   |                       | **5.9**   |     |   | **6.0** |   |   | **22.9** |   |   | 6.8 |   |   | 6.8 |   |   | 6.6 |   |   | 6.1 |   |   | 26.3 |   |   | 26.1 |   |

**DISCONTINUED      OPERATIONS**

*($/boe,      unless otherwise indicated)*

|                                                    |   | **2006                Three Months Ended** |       | **Total**                  |   | 2005                Three Months Ended |   | Total                      |   | Total    |   |
|---------------------------------------------------------|--------|--------------------------------------------|------------|----------------------------|--------|----------------------------------------|--------|----------------------------|--------|----------|--------|
|                                                    |   | **Mar.                31**                 |       | **June                30** |   | **Sept.                30**            |   | **Dec.                31** |   | **2006** |   | Mar.                31 |   | June                30 |   | Sept.                30 |   | Dec.                31 |   | 2005 |   | 2004 |   |
| Average                price received5                  |   | **$**                                      | **70.36**  |                       |   | **-**                                  |   |                       | **-**  |     |   | **-** |   | **$** | **70.36** |   | $ | 52.83 |   | $ | 58.96 |   | $ | 65.24 |   | $ | 62.80 |   | $ | 60.39 |   | $ | 45.91 |   |
| Royalties                                               |   |                                       | **(52.10** | **)**                      |   | **-**                                  |   |                       | **-**  |     |   | **-** |   |   | **(52.10** | **)** |   | (35.71 | ) |   | (41.73 | ) |   | (45.73 | ) |   | (43.60 | ) |   | (42.15 | ) |   | (31.49 | ) |
| Net                revenue                              |   |                                       | **18.26**  |                       |   | **-**                                  |   |                       | **-**  |     |   | **-** |   |   | **18.26** |   |   | 17.12 |   |   | 17.23 |   |   | 19.51 |   |   | 19.20 |   |   | 18.24 |   |   | 14.42 |   |
| Operating                expenses                       |   |                                       | **(2.65**  | **)**                      |   | **-**                                  |   |                       | **-**  |     |   | **-** |   |   | **(2.65** | **)** |   | (3.91 | ) |   | (3.08 | ) |   | (4.52 | ) |   | (3.96 | ) |   | (3.87 | ) |   | (3.94 | ) |
| Netback                                                 |   |                                       | **15.61**  |                       |   | **-**                                  |   |                       | **-**  |     |   | **-** |   |   | **15.61** |   |   | 13.21 |   |   | 14.15 |   |   | 14.99 |   |   | 15.24 |   |   | 14.37 |   |   | 10.48 |   |
| Overhead                expenses (G&A)2             |   |                                       | **(0.23**  | **)**                      |   | **-**                                  |   |                       | **-**  |     |   | **-** |   |   | **(0.23** | **)** |   | (0.21 | ) |   | (0.17 | ) |   | (0.12 | ) |   | (0.23 | ) |   | (0.19 | ) |   | (0.14 | ) |
| Netback                after overhead                   |   |                                       | **15.38**  |                       |   | **-**                                  |   |                       | **-**  |     |   | **-** |   |   | **15.38** |   |   | 13.00 |   |   | 13.98 |   |   | 14.87 |   |   | 15.01 |   |   | 14.18 |   |   | 10.34 |   |
| Processing                and other income              |   |                                       | **(1.06**  | **)**                      |   | **-**                                  |   |                       | **-**  |     |   | **-** |   |   | **(1.06** | **)** |   | 0.33 |   |   | 0.47 |   |   | (0.22 | ) |   | (0.07 | ) |   | 0.14 |   |   | (0.04 | ) |
| Depletion,                depreciation and amortization |   |                                       | **-**      |                       |   | **-**                                  |   |                       | **-**  |     |   | **-** |   |   | **-** |   |   | (6.89 | ) |   | (6.63 | ) |   | (6.30 | ) |   | (2.66 | ) |   | (5.67 | ) |   | (5.02 | ) |
| Income                and other taxes                   |   |                                       | **(5.11**  | **)**                      |   | **-**                                  |   |                       | **-**  |     |   | **-** |   |   | **(5.11** | **)** |   | (3.88 | ) |   | (4.39 | ) |   | (5.10 | ) |   | (4.87 | ) |   | (4.55 | ) |   | (3.34 | ) |
| **Net                earnings**                         |   | **$**                                      | **9.21**   |                       |   | **-**                                  |   |                       | **-**  |     |   | **-** |   | **$** | **9.21** |   | $ | 2.56 |   | $ | 3.43 |   | $ | 3.25 |   | $ | 7.41 |   | $ | 4.10 |   | $ | 1.94 |   |
| Production,                net *(MMboe)*                |   |                                       | **2.0**    |                       |   | **-**                                  |   |                       | **-**  |     |   | **-** |   |   | **2.0** |   |   | 6.6 |   |   | 6.5 |   |   | 6.4 |   |   | 6.1 |   |   | 25.6 |   |   | 29.0 |   |

----

**Reserves**

*Standards of Disclosure for Oil and Gas Activities*

***Petro-Canada's      Reserves Processes***

*Reserves      Steering Committee*

*Reservoir      Engineering Organization*

*Reserves      Definitions, Policies, Procedures and Practices*

----

*Major      Property Reviews*

*Reserves      Software Tools*

*Independent      Evaluation/Audit/Review*

*Reserves      Review and Disclosure Process*

----

**MAJOR      RESERVES AND PRODUCTION LOCATIONS, BEFORE DEDUCTION OF      ROYALTIES**

| Crude                Oilfield/Facility1 | Location                                          | **Proved                Reserves**2, 3**at December 31, 2006***(MMbbls)* | **Average                2006****Daily                Production***(Mbbl/d****)*** |
|-----------------------------------------|---------------------------------------------------|--------------------------------------------------------------------------|------------------------------------------------------------------------------------|
| Syncrude3                          | Alberta                                           | **344**                                                                  | **31**                                                                             |
| MacKay                River             | Alberta                                           | **157**                                                                  | **22**                                                                             |
| Buzzard                                 | Offshore                U.K.                      | **104**                                                                  | **-**                                                                              |
| Hibernia                                | Offshore                Newfoundland and Labrador | **54**                                                                   | **36**                                                                             |
| Amal                                    | Libya                                             | **42**                                                                   | **16**                                                                             |
| Terra                Nova               | Offshore                Newfoundland and Labrador | **38**                                                                   | **13**                                                                             |
| White                Rose               | Offshore                Newfoundland and Labrador | **32**                                                                   | **24**                                                                             |
| Ghani/Zenad                Farrud       | Libya                                             | **30**                                                                   | **11**                                                                             |
| Ghani                Gir/Facha          | Libya                                             | **20**                                                                   | **7**                                                                              |
| Ferrier                                 | Alberta                                           | **16**                                                                   | **2**                                                                              |
| Other                                   |                                              | **92**                                                                   | **51**                                                                             |
| **Total**                               |                                              | **929**                                                                  | **213**                                                                            |

| Natural                Gas Field/Facility1 | Location                                    | **Proved                Reserves at December 31, 2006***(Bcf)* | **Average                2006****Daily                Production**2*(MMcf/d)* |
|--------------------------------------------|---------------------------------------------|----------------------------------------------------------------|-------------------------------------------------------------------------------|
| Wildcat                Hills area          | Alberta                                     | **326**                                                        | **114**                                                                       |
| Hanlan                area                 | Alberta                                     | **224**                                                        | **94**                                                                        |
| NCMA-1                                     | Offshore                Trinidad and Tobago | **215**                                                        | **63**                                                                        |
| Medicine                Hat                | Alberta                                     | **185**                                                        | **45**                                                                        |
| Jedney/Bubbles                area         | British                Columbia             | **117**                                                        | **28**                                                                        |
| Alderson                                   | Alberta                                     | **97**                                                         | **25**                                                                        |
| Laprise                area                | British                Columbia             | **83**                                                         | **27**                                                                        |
| Denver-Julesburg                area       | U.S.                                        | **78**                                                         | **20**                                                                        |
| Ricinus/Bearberry/Strachan                 | Alberta                                     | **71**                                                         | **45**                                                                        |
| Powder                River area           | U.S.                                        | **59**                                                         | **20**                                                                        |
| Other                                      |                                        | **490**                                                        | **260**                                                                       |
| **Total**                                  |                                        | **1,945**                                                      | **741**                                                                       |

----

**PROVED      RESERVES BEFORE ROYALTIES**

*(Crude      oil and equivalents in MMbbls; Natural gas in Bcf)*

|                                                                                                                                    |   | **TABLE                1****Oil                and Gas Activities**1, 2, 3, 4, 5 |    | **TABLE                2****Oil                Sands Mining**1, 2, 3, 4, 5 |   | **TABLE                3****Total****Oil****and                Gas Activities and Oil Sands Mining** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------|---------|----------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                    |   | **International**                                                                |    | **North                America**                                           |   |                                                                                                 |   |   |   |   |   |
|                                                                                                                                    |   |                                                                             |    |                                                                       |   |                                                                                                 |   |   |   | **North                American Natural Gas** |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                    |   | Northwest                Europe6                                                 |    | North                Africa/Near East 7, 8, 9, 10, 11, 16                  |   | Northern                Latin America7, 12                                                           |   | Subtotal |   | Western                Canada |   | U.S.                Rockies |   | East                Coast |   | Oil                Sands |   | Subtotal |   | **Total** |   | **Syncrude                Mining Operation**13 |   | **Total** |   |
|                                                                                                                                    |   | Crude                oil & NGL                                               |    | Natural                gas                                                 |   | Crude                oil & NGL                                                                   |   | Naturalgas |   | Natural                gas |   | Crude                oil & NGL |   | Naturalgas |   | Crude                oil & NGL |   | Natural                gas |   | Crude                oil & NGL |   | Natural                gas |   | Crude                oil & NGL |   | Bitumen |   | Crude                oil, NGL & bitumen |   | Naturalgas |   | **Crude                oil,****NGL                & bitumen** |   | **Natural                gas** |   | **Synthetic****crude                oil**17 |   | **Crude                oil & equivalents** |   |
| **Beginning****                 of year****                 2005**                                                            |   |                                                                             | **148** |                                                                       |   | **131**                                                                                              |   |   | **210** |   |   | **39** |   |   | **265** |   |   | **358** |   |   | **435** |   |   | **38** |   |   | **1,950** |   |   | **6** |   |   | **88** |   |   | **68** |   |   | - |   |   | 112 |   |   | **2,038** |   |   | **470** |   |   | **2,473** |   |   | **331** |   |   | **801** |   |
| Revisions                of                 previous                 estimates14                                              |   |                                                                             | 2       |                                                                       |   | 4                                                                                                    |   |   | 29 |   |   | (14 | ) |   | - |   |   | 31 |   |   | (10 | ) |   | 5 |   |   | (36 | ) |   | 2 |   |   | 22 |   |   | 68 |   |   | 8 |   |   | 83 |   |   | (14 | ) |   | 114 |   |   | (24 | ) |   | 20 |   |   | 134 |   |
| Sale                of                 reserves in                 place                                                      |   |                                                                             | -       |                                                                       |   | -                                                                                                    |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Purchase                of                  reserves in                 place                                            |   |                                                                             | 5       |                                                                       |   | 4                                                                                                    |   |   | - |   |   | - |   |   | - |   |   | 5 |   |   | 4 |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 5 |   |   | 4 |   |   | - |   |   | 5 |   |
| Discoveries,                 extension                  and                 improved                 recovery  |   |                                                                             | -       |                                                                       |   | -                                                                                                    |   |   | 3 |   |   | - |   |   | - |   |   | 3 |   |   | - |   |   | 4 |   |   | 44 |   |   | - |   |   | - |   |   | 23 |   |   | - |   |   | 27 |   |   | 44 |   |   | 30 |   |   | 44 |   |   | - |   |   | 30 |   |
| Production                 net                                                                                                     |   |                                                                             | (12     | )                                                                          |   | (24                                                                                                  | )      |   | (42 | ) |   | (9 | ) |   | (26 | ) |   | (54 | ) |   | (59 | ) |   | (5 | ) |   | (229 | ) |   | (1 | ) |   | (14 | ) |   | (27 | ) |   | (8 | ) |   | (41 | ) |   | (243 | ) |   | (95 | ) |   | (302 | ) |   | (9 | ) |   | (104 | ) |
| **End                of year****                 2005**                                                                            |   |                                                                             | **143** |                                                                       |   | **115**                                                                                              |   |   | **200** |   |   | **16** |   |   | **239** |   |   | **343** |   |   | **370** |   |   | **42** |   |   | **1,729** |   |   | **7** |   |   | **96** |   |   | **132** |   |   | - |   |   | **181** |   |   | **1,825** |   |   | **524** |   |   | **2,195** |   |   | **342** |   |   | **866** |   |
| Revisions                of                 previous                 estimates14                                              |   |                                                                             | 13      |                                                                       |   | (6                                                                                                   | )      |   | (2 | ) |   | - |   |   | (1 | ) |   | 11 |   |   | (7 | ) |   | 1 |   |   | (47 | ) |   | 2 |   |   | 64 |   |   | 18 |   |   | 165 |   |   | 186 |   |   | 17 |   |   | 197 |   |   | 10 |   |   | 14 |   |   | 211 |   |
| Sale                of                 reserves in                 place                                                      |   |                                                                             | -       |                                                                       |   | (2                                                                                                   | )      |   | (46 | ) |   | (15 | ) |   | - |   |   | (46 | ) |   | (17 | ) |   | - |   |   | (1 | ) |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | (1 | ) |   | (46 | ) |   | (18 | ) |   | - |   |   | (46 | ) |
| Purchase                of                  reserves in                 place                                            |   |                                                                             | -       |                                                                       |   | -                                                                                                    |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 1 |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 1 |   |   | - |   |   | 1 |   |   | - |   |   | - |   |
| Discoveries,                 extensions                 and                 improved                  recovery |   |                                                                             | -       |                                                                       |   | -                                                                                                    |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 27 |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 27 |   |   | - |   |   | 27 |   |   | - |   |   | - |   |
| Production                 net                                                                                                     |   |                                                                             | (12     | )                                                                          |   | (23                                                                                                  | )      |   | (18 | ) |   | - |   |   | (23 | ) |   | (30 | ) |   | (46 | ) |   | (4 | ) |   | (209 | ) |   | (1 | ) |   | (15 | ) |   | (27 | ) |   | (8 | ) |   | (40 | ) |   | (224 | ) |   | (70 | ) |   | (270 | ) |   | (11 | ) |   | (81 | ) |
| **End                of year****                 2006**                                                                            |   |                                                                             | **144** |                                                                       |   | **84**                                                                                               |   |   | **134** |   |   | **1** |   |   | **215** |   |   | **278** |   |   | **300** |   |   | **39** |   |   | **1,500** |   |   | **8** |   |   | **145** |   |   | **123** |   |   | **157** |   |   | **327** |   |   | **1,645** |   |   | **605** |   |   | **1,945** |   |   | **345** |   |   | **950** |   |
| **Proved**** undeveloped****                 reserves**15                                                                     |   |                                                                             |         |                                                                       |   |                                                                                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| **Beginning                of****                 year 2005**                                                                      |   |                                                                             | **101** |                                                                       |   | **14**                                                                                               |   |   | **21** |   |   | - |   |   | **178** |   |   | **122** |   |   | **192** |   |   | **1** |   |   | **82** |   |   | **2** |   |   | **24** |   |   | **19** |   |   | - |   |   | **22** |   |   | **106** |   |   | **144** |   |   | **298** |   |   | **189** |   |   | **333** |   |
| **End                of year****                 2005**                                                                            |   |                                                                             | **95**  |                                                                       |   | **14**                                                                                               |   |   | **22** |   |   | - |   |   | **178** |   |   | **117** |   |   | **192** |   |   | **1** |   |   | **132** |   |   | **3** |   |   | **30** |   |   | **43** |   |   | - |   |   | **47** |   |   | **162** |   |   | **164** |   |   | **354** |   |   | **209** |   |   | **373** |   |
| **End                of year****                 2006**                                                                            |   |                                                                             | **42**  |                                                                       |   | **3**                                                                                                |   |   | **3** |   |   | - |   |   | **138** |   |   | **45** |   |   | **141** |   |   | - |   |   | **56** |   |   | **4** |   |   | **36** |   |   | **33** |   |   | **129** |   |   | **166** |   |   | **92** |   |   | **211** |   |   | **233** |   |   | **219** |   |   | **430** |   |

----

**PROVED      RESERVES AFTER ROYALTIES**

*(Crude      oil and equivalents in MMbbls; Natural gas in Bcf)*

|                                                                                                                              |   | **TABLE                1****Oil                and Gas Activities**1, 2, 3, 4, 5 |    | **TABLE                2****Oil                Sands Mining**1, 2, 3, 4, 5 |   | **TABLE                3****Total****Oil****and                Gas Activities and Oil Sands Mining** |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------|---------|----------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                              |   | **International**                                                                |    | **North                America**                                           |   |                                                                                                 |   |   |   |   |   |
|                                                                                                                              |   |                                                                             |    |                                                                       |   |                                                                                                 |   |   |   | **North                American Natural Gas** |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                              |   | Northwest                Europe6                                                 |    | North                Africa/Near East 7, 8, 9, 10, 11, 16                  |   | Northern                Latin America7, 12                                                           |   | Subtotal |   | Western                Canada |   | U.S.                Rockies |   | East                Coast |   | Oil                Sands |   | Subtotal |   | **Total** |   | **Syncrude                Mining Operation**13 |   | **Total** |   |
|                                                                                                                              |   | Crude                oil & NGL                                               |    | Natural                gas                                                 |   | Crude                oil & NGL                                                                   |   | Naturalgas |   | Natural                gas |   | Crude                oil & NGL |   | Naturalgas |   | Crude                oil & NGL |   | Natural                gas |   | Crude                oil & NGL |   | Natural                gas |   | Crude                oil & NGL |   | Bitumen |   | Crude                  oil, NGL & bitumen |   | Naturalgas |   | **Crude                oil, NGL & bitumen** |   | **Natural                gas** |   | **Synthetic****crude                oil**17 |   | **Crude                oil & equivalents** |   |
| **Beginning                of****                 year 2005**                                                                |   |                                                                             | **148** |                                                                       |   | **131**                                                                                              |   |   | **144** |   |   | **13** |   |   | **225** |   |   | **292** |   |   | **369** |   |   | **30** |   |   | **1,508** |   |   | **4** |   |   | **73** |   |   | **61** |   |   | - |   |   | **95** |   |   | **1,581** |   |   | **387** |   |   | **1,950** |   |   | **287** |   |   | **674** |   |
| Revisions                of                 previous                 estimates14                                        |   |                                                                             | 1       |                                                                       |   | 5                                                                                                    |   |   | 28 |   |   | (6 | ) |   | (1 | ) |   | 29 |   |   | (2 | ) |   | 5 |   |   | (28 | ) |   | 7 |   |   | 18 |   |   | 57 |   |   | 8 |   |   | 77 |   |   | (10 | ) |   | 106 |   |   | (12 | ) |   | 9 |   |   | 115 |   |
| Sale                of                 reserves in                 place                                                |   |                                                                             | -       |                                                                       |   | -                                                                                                    |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |
| Purchase                of                 reserves in                 place                                            |   |                                                                             | 5       |                                                                       |   | 3                                                                                                    |   |   | - |   |   | - |   |   | - |   |   | 5 |   |   | 3 |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 5 |   |   | 3 |   |   | - |   |   | 5 |   |
| Discoveries,                 extensions                 and                 improved                 recovery |   |                                                                             | -       |                                                                       |   | -                                                                                                    |   |   | 2 |   |   | - |   |   | - |   |   | 2 |   |   | - |   |   | 3 |   |   | 34 |   |   | - |   |   | - |   |   | 20 |   |   | - |   |   | 23 |   |   | 34 |   |   | 25 |   |   | 34 |   |   | - |   |   | 25 |   |
| Production                 net                                                                                               |   |                                                                             | (12     | )                                                                          |   | (24                                                                                                  | )      |   | (22 | ) |   | (2 | ) |   | (21 | ) |   | (34 | ) |   | (47 | ) |   | (4 | ) |   | (175 | ) |   | (6 | ) |   | (12 | ) |   | (25 | ) |   | (8 | ) |   | (43 | ) |   | (187 | ) |   | (77 | ) |   | (234 | ) |   | (9 | ) |   | (86 | ) |
| **End                of year****                 2005**                                                                      |   |                                                                             | **142** |                                                                       |   | **115**                                                                                              |   |   | **152** |   |   | **5** |   |   | **203** |   |   | **294** |   |   | **323** |   |   | **34** |   |   | **1,339** |   |   | **5** |   |   | **79** |   |   | **113** |   |   | - |   |   | **152** |   |   | **1,418** |   |   | **446** |   |   | **1,741** |   |   | **287** |   |   | **733** |   |
| Revisions                of                 previous                 estimates14                                        |   |                                                                             | 13      |                                                                       |   | (6                                                                                                   | )      |   | 28 |   |   | 10 |   |   | (2 | ) |   | 41 |   |   | 2 |   |   | 1 |   |   | (43 | ) |   | 2 |   |   | 55 |   |   | 10 |   |   | 159 |   |   | 172 |   |   | 12 |   |   | 213 |   |   | 14 |   |   | 12 |   |   | 225 |   |
| Sale                of                 reserves in                 place                                                |   |                                                                             | -       |                                                                       |   | (2                                                                                                   | )      |   | (42 | ) |   | (15 | ) |   | - |   |   | (42 | ) |   | (17 | ) |   | - |   |   | (1 | ) |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | (1 | ) |   | (42 | ) |   | (18 | ) |   | - |   |   | (42 | ) |
| Purchase                of                 reserves in                 place                                            |   |                                                                             | -       |                                                                       |   | -                                                                                                    |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 1 |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 1 |   |   | - |   |   | 1 |   |   | - |   |   | - |   |
| Discoveries,                 extensions                 and                 improved                 recovery |   |                                                                             | -       |                                                                       |   | -                                                                                                    |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 21 |   |   | - |   |   | - |   |   | - |   |   | - |   |   | - |   |   | 21 |   |   | - |   |   | 21 |   |   | - |   |   | - |   |
| Production                 net                                                                                               |   |                                                                             | (12     | )                                                                          |   | (23                                                                                                  | )      |   | (16 | ) |   | - |   |   | (12 | ) |   | (28 | ) |   | (35 | ) |   | (3 | ) |   | (166 | ) |   | (1 | ) |   | (12 | ) |   | (25 | ) |   | (8 | ) |   | (37 | ) |   | (178 | ) |   | (65 | ) |   | (213 | ) |   | (10 | ) |   | (75 | ) |
| **End                of year****                 2006**                                                                      |   |                                                                             | **143** |                                                                       |   | **84**                                                                                               |   |   | **122** |   |   | - |   |   | **189** |   |   | **265** |   |   | **273** |   |   | **32** |   |   | **1,151** |   |   | **6** |   |   | **122** |   |   | **98** |   |   | **151** |   |   | **287** |   |   | **1,273** |   |   | **552** |   |   | **1,546** |   |   | **289** |   |   | **841** |   |
| **Proved**** undeveloped**** reserves**15                                                                               |   |                                                                             |         |                                                                       |   |                                                                                                      |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |
| **Beginning                of****                 year 2005**                                                                |   |                                                                             | **101** |                                                                       |   | **14**                                                                                               |   |   | **14** |   |   | **-** |   |   | **151** |   |   | **115** |   |   | **165** |   |   | **1** |   |   | **65** |   |   | **2** |   |   | **20** |   |   | **16** |   |   | **-** |   |   | **19** |   |   | **85** |   |   | **134** |   |   | **250** |   |   | **161** |   |   | **295** |   |
| **End                of year****                 2005**                                                                      |   |                                                                             | **95**  |                                                                       |   | **14**                                                                                               |   |   | **15** |   |   | **-** |   |   | **151** |   |   | **110** |   |   | **165** |   |   | **1** |   |   | **99** |   |   | **3** |   |   | **25** |   |   | **33** |   |   | **-** |   |   | **37** |   |   | **124** |   |   | **147** |   |   | **289** |   |   | **173** |   |   | **320** |   |
| **End                of year****                 2006**                                                                      |   |                                                                             | **42**  |                                                                       |   | **4**                                                                                                |   |   | **2** |   |   | **-** |   |   | **121** |   |   | **44** |   |   | **125** |   |   | **-** |   |   | **42** |   |   | **4** |   |   | **30** |   |   | **24** |   |   | **124** |   |   | **152** |   |   | **72** |   |   | **196** |   |   | **197** |   |   | **182** |   |   | **378** |   |

----

| 1   | In                order to harmonize its oil and gas disclosure in both Canada and                the U.S.,                Petro-Canada applied for, and received, certain exemptions to reserves                disclosure requirements as set out in NI 51-101. These exemptions                permit                Petro-Canada to use its own staff of qualified reserves evaluators                to                prepare the Company's reserves estimates and to use U.S. SEC and                FASB                standards when preparing and reporting reserves. Such reserves information                may differ from reserves information prepared in accordance with                Canadian                disclosure standards under NI 51-101. These differences relate to                the SEC                requirement for disclosure only of proved reserves calculated at                constant                year-end prices and costs while NI 51-101 requires disclosure of                proved                reserves at constant prices and costs, and proved plus probable reserves                at forecast prices and costs. Also, the definition of proved reserves                differs between SEC and NI 51-101 requirements. However, this difference                should not be material. The Canadian Oil and Gas Evaluation Handbook                (the                source document for reserves definitions under NI 51-101) supports                this                view. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2   | Petro-Canada                employs the services of independent third-party evaluators/auditors                to                assess its reserves policies, procedures and practices and its reserves                estimates. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3   | Proved                reserves before royalties are Petro-Canada's working interest reserves                before the deduction of Crown or other royalties. Such royalties                are                subject to change by legislation or regulation and can also vary                depending                on production rates, selling prices and timing of initial production.                Reserves quantities after royalty also reflect net overriding royalty                interests paid and received. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4   | Proved                reserves are the estimated quantities of crude oil, natural gas and                NGL,                which geological and engineering data demonstrate with reasonable                certainty to be recoverable in future years from known reservoirs                under                existing economic and operating conditions. Proved developed reserves                are                those proved reserves that are expected to be recovered from existing                wells or facilities. Proved undeveloped reserves are proved reserves                which                are not recoverable from existing wells or facilities, but which                are                expected to be recovered through additional development drilling                or                through the upgrading of existing or additional new                facilities. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 5   | Unproved                reserves are based on geological and/or engineering data similar                to that                used in estimates of proved reserves, but technical, contractual,                economic                or regulatory uncertainties preclude such reserves being classified                as                proved. Unproved reserves may be further classified as probable reserves                and possible reserves. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 6   | Reserves                in Northwest Europe are subject to a conventional royalty and tax                regime.                No royalty is payable on reserves in the U.K. sector. Royalty is                payable                on onshore reserves in the Netherlands. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7   | Proved                reserves include quantities of crude oil and natural gas, which will                be                produced under arrangements, which involve the Company or its subsidiaries                in upstream risks and rewards, but which do not transfer title of                the                product to those companies. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8   | In                Petro-Canada's PSCs, after royalty proved reserves have been determined                using the economic interest method and include the Company's share                of                future cost recovery and profit oil after foreign governments' royalty                interest, and include reserves relating to income tax payable. Under                this                method, reported reserves will increase as oil prices decrease (and                vice                versa) since the bbls necessary to achieve cost recovery change with                the                prevailing oil prices. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 9   | Reserves                in Syria are held under PSCs with the Syrian government and are calculated                as per footnote 8. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------|
| 10   | With                the exception of the En Naga field, reserves in Libya are held under                a                concession and are subject to a royalty and tax regime. The En Naga                field is held under a PSC with the Libyan government, with reserves                being                calculated as per footnote 8. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 11   | The                volume of oil and gas reserves before royalties reported above held                under                PSCs in the North Africa/Near East region at the end of 2006 was                10 MMbbls                of crude oil and NGL and zero Bcf of natural gas. At year-end 2005,                the                volume was 59 MMbbls of crude oil and NGL and 15 Bcf of natural gas.                The after royalty reserves volumes were: year-end 2006 - 7 MMbbls                of crude                oil and NGL and zero Bcf of natural gas, and year-end 2005 - 21 MMbbls                of                crude oil and NGL and 5 Bcf of natural gas. Reserves information                for 2005                includes the Syrian producing assets sold in                2006. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 12   | Natural                gas reserves in Trinidad and Tobago are held under a PSC with the                applicable government and are calculated as per footnote 8. The volume                of                proved natural gas reserves before royalties reported above held                under                PSCs in Trinidad and Tobago at the end of 2006 was 215 Bcf. At year-end                2005, the volume was 239 Bcf. The after royalty reserves volumes                were:                year-end 2006 - 189 Bcf, and year-end 2005 - 203                Bcf. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 13   | U.S.                SEC regulations do not define proved reserves of synthetic crude                oil from                oil sands mining operations as an oil and gas activity. These reserves                are                classified as a mining activity and are estimated in accordance with                SEC                Industry Guide 7. Petro-Canada views these reserves as an integral                part of                the Company's business. Proved reserves of synthetic crude oil are                based                on high geological certainty and application of proven or piloted                technology. For proved reserves, drill-hole spacing is less than                500                metres and appropriate co-owner and regulatory approvals are in place.                Syncrude proved oil sands mining reserves have been determined using                SEC                year-end prices in the economics. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 14   | Revisions                include changes in previous estimates, either upward or downward,                resulting from new information (except an increase in acreage) normally                obtained from drilling or production history or resulting from a                change in                economic factors. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 15   | Proved                undeveloped crude oil and NGL proved reserves in Table 1 represent                approximately 35% of Petro-Canada's total crude oil and NGL proved                reserves. The vast majority of these oil and NGL reserves are associated                with large development projects currently producing or under active                development, including Buzzard, MacKay River, White Rose, Terra Nova                and                Hibernia. Proved undeveloped gas reserves represent approximately                12% of                total proved natural gas reserves. These reserves typically will                be                developed through tie-in of existing wells, drilling of additional                wells                or addition of compression facilities. Fifty-nine per cent of the                proved                undeveloped gas reserves are associated with the currently producing                NCMA-1 development in Trinidad and Tobago. Generally, the Company                plans to                develop proved undeveloped natural gas reserves in the next few                years. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 16   | The                Company closed the sale of its Syrian producing assets on January                31,                2006. |
|----------------|------------------------------------------------------------------------------------------------------------------------------|
| 17   | For                internal management purposes, we view the oil sands mining reserves                as                part of the Company's total exploration and production                operations. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

***Standardized      Measure of Discounted Future Net Cash Flows and Changes Therein Relating to      Proved Oil and Gas Reserves***

*Disclosures About Oil      and Gas Producing Activities*

**PRESENT        VALUE OF ESTIMATED FUTURE NET CASH FLOWS**

*(millions        of Canadian dollars)*

|                                                                       |   |  **Western                  Canada**1       |  **U.S.                  Rockies**            |  **East                  Coast Oil**2        |
|----------------------------------------------------------------------------|--------|--------------------------------------------------|----------------------------------------------------|---------------------------------------------------|
|                                                                       |   | **2006**                                         |                                               | 2005                                              |   | 2004 |   | **2006** |   | 2005 |   | 2004 |   | **2006** |   | 2005 |   | 2004 |   |
| Future                  cash flows                                         |   | **$**                                            | **12,513**                                         |                                              | $ | 15,255 |   | $ | 11,470 |   | **$** | **1,130** |   | $ | 1,058 |   | $ | 688 |   | **$** | **7,164** |   | $ | 7,746 |   | $ | 2,580 |   |
| Future                  production, development and asset retirement costs |   |                                             | **(5,593**                                         | **)**                                             |   | (2,631 | ) |   | (2,344 | ) |   | **(525** | **)** |   | (402 | ) |   | (281 | ) |   | **(1,499** | **)** |   | (1,314 | ) |   | (786 | ) |
| Future                  income taxes                                       |   |                                             | **(1,764**                                         | **)**                                             |   | (4,121 | ) |   | (2,900 | ) |   | **(187** | **)** |   | (245 | ) |   | (110 | ) |   | **(1,553** | **)** |   | (1,993 | ) |   | (467 | ) |
| Future                  net cash flows                                     |   |                                             | **5,156**                                          |                                              |   | 8,503 |   |   | 6,226 |   |   | **418** |   |   | 411 |   |   | 297 |   |   | **4,112** |   |   | 4,439 |   |   | 1,327 |   |
| Discount                  of 10% for estimated timing of cash flows        |   |                                             | **(1,927**                                         | **)**                                             |   | (3,413 | ) |   | (2,676 | ) |   | **(154** | **)** |   | (168 | ) |   | (118 | ) |   | **(879** | **)** |   | (1,164 | ) |   | (285 | ) |
| Discounted                  future net cash flows                          |   | **$**                                            | **3,229**                                          |                                              | $ | 5,090 |   | $ | 3,550 |   | **$** | **264** |   | $ | 243 |   | $ | 179 |   | **$** | **3,233** |   | $ | 3,275 |   | **$** | **1,042** |   |
|                                                                       |   |                                             |                                               |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                       |   |  **Northwest                  Europe**      |  **North                  Africa/Near East**  |  **Northern                  Latin America** |
|                                                                       |   |                                             | **2006**                                           |                                              |   | 2005 |   |   | 2004 |   |   | **2006** |   |   | 2005 |   |   | 2004 |   |   | **2006** |   |   | 2005 |   |   | 2004 |   |
| Future                  cash flows                                         |   | $                                                | 8,506                                              |                                              | $ | 9,092 |   | $ | 7,624 |   | **$** | **8,011** |   | $ | 8,984 |   | $ | 6,039 |   | **$** | **838** |   | $ | 1,737 |   | $ | 1,031 |   |
| Future                  production, development and asset retirement costs |   |                                             | **(2,918**                                         | **)**                                             |   | (2,844 | ) |   | (3,190 | ) |   | **(1,024** | **)** |   | (800 | ) |   | (981 | ) |   | **(282** | **)** |   | (248 | ) |   | (151 | ) |
| Future                  income taxes                                       |   |                                             | **(2,966**                                         | **)**                                             |   | (3,227 | ) |   | (1,682 | ) |   | **(6,088** | **)** |   | (7,092 | ) |   | (4,344 | ) |   | **(289** | **)** |   | (813 | ) |   | (479 | ) |
| Future                  net cash flows                                     |   |                                             | **2,622**                                          |                                              |   | 3,021 |   |   | 2,752 |   |   | **899** |   |   | 1,092 |   |   | 714 |   |   | **267** |   |   | 676 |   |   | 401 |   |
| Discount                  of 10% for estimated timing of cash flows        |   |                                             | **(532**                                           | **)**                                             |   | (859 | ) |   | (929 | ) |   | **(309** | **)** |   | (392 | ) |   | (271 | ) |   | **(119** | **)** |   | (305 | ) |   | (188 | ) |
| Discounted                  future net cash flows                          |   | **$**                                            | **2,090**                                          |                                              | $ | 2,162 |   | $ | 1,823 |   | **$** | **590** |   | $ | 700 |   | $ | 443 |   | **$** | **148** |   | $ | 371 |   | $ | 213 |   |
|                                                                       |   |                                             |                                               |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                       |   |  **Continuing                  Operations** |  **Discontinued                  Operations** |  **Total**                                   |
|                                                                       |   |                                             | **2006**                                           |                                              |   | 2005 |   |   | 2004 |   |   | **2006** |   |   | 2005 |   |   | 2004 |   |   | **2006** |   |   | 2005 |   |   | 2004 |   |
| Future                  cash flows                                         |   | **$**                                            | **38,162**                                         |                                              | $ | 43,872 |   | $ | 29,432 |   | **$** | **-** |   | $ | 1,008 |   | $ | 1,038 |   | **$** | **38,162** |   | $ | 44,880 |   | $ | 30,470 |   |
| Future                  production, development and asset retirement costs |   |                                             | **(11,841**                                        | **)**                                             |   | (8,239 | ) |   | (7,733 | ) |   | **-** |   |   | (336 | ) |   | (453 | ) |   | **(11,841** | **)** |   | (8,575 | ) |   | (8,186 | ) |
| Future                  income taxes                                       |   |                                             | **(12,847**                                        | **)**                                             |   | (17,491 | ) |   | (9,982 | ) |   | **-** |   |   | (244 | ) |   | (219 | ) |   | **(12,847** | **)** |   | (17,735 | ) |   | (10,201 | ) |
| Future                  net cash flows                                     |   |                                             | **13,474**                                         |                                              |   | 18,142 |   |   | 11,717 |   |   | **-** |   |   | 428 |   |   | 366 |   |   | **13,474** |   |   | 18,570 |   |   | 12,083 |   |
| Discount                  of 10% for estimated timing of cash flows        |   |                                             | **(3,920**                                         | **)**                                             |   | (6,301 | ) |   | (4,467 | ) |   | **-** |   |   | (81 | ) |   | (84 | ) |   | **(3,920** | **)** |   | (6,382 | ) |   | (4,551 | ) |
| Discounted                  future net cash flows                          |   | **$**                                            | **9,554**                                          |                                              | $ | 11,841 |   | $ | 7,250 |   | **$** | **-** |   | $ | 347 |   | $ | 282 |   | **$** | **9,554** |   | $ | 12,188 |   | $ | 7,532 |   |

----

**SUMMARY      OF CHANGES IN PRESENT VALUE OF ESTIMATED FUTURE CASH FLOWS**

*(millions      of Canadian dollars)*

|                                                                                               |   | **2006** |       | 2005   |   | 2004   |   |
|----------------------------------------------------------------------------------------------------|--------|----------|------------|--------|--------|--------|--------|
| **Balance                at beginning of year**                                                    |   | **$**    | **12,188** |   | $      | 7,532  |   | $ | 6,216 |   |
| **Changes                result from:**                                                            |   |     |       |   |   |   |   |   |   |   |
| Sales                and transfers of oil and gas produced, net of production                costs |   |     | **(5,480** | **)**  |   | (5,273 | )      |   | (4,348 | ) |
| Net                changes in prices, operating costs and royalties                                |   |     | **(2,859** | **)**  |   | 9,013  |   |   | 2,482 |   |
| Extensions,                discoveries, additions and improved recoveries                          |   |     | **59**     |   |   | 1,383  |   |   | 395 |   |
| Changes                in estimated future development costs                                       |   |     | **(597**   | **)**  |   | (758   | )      |   | (1,235 | ) |
| Development                costs incurred during the year                                          |   |     | **900**    |   |   | 900    |   |   | 966 |   |
| Revisions                of previous quantity estimates                                            |   |     | **2,081**  |   |   | 3,328  |   |   | 979 |   |
| Accretion                of discount                                                               |   |     | **2,295**  |   |   | 1,374  |   |   | 1,117 |   |
| Net                change in income tax                                                            |   |     | **2,572**  |   |   | (4,711 | )      |   | (1,186 | ) |
| Purchase                and sale of reserves in place                                              |   |     | **(367**   | **)**  |   | 246    |   |   | 2,017 |   |
| Changes                in timing and other                                                         |   |     | **(1,238** | **)**  |   | (846   | )      |   | 129 |   |
| Net                change                                                                          |   |     | **(2,634** | **)**  |   | 4,656  |   |   | 1,316 |   |
| **Balance                at end of year**                                                          |   | **$**    | **9,554**  |   | $      | 12,188 |   | $ | 7,532 |   |

***Abandonment      and Reclamation Costs***

**PRODUCTIVE      WELLS**
** AT DECEMBER 31, 2006**

|                                                                            |   | **                         Crude Oil Wells** |   | **                          Natural Gas Wells** |   | **                             Total Wells** |   |
|---------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|--------|
|                                                                            |   | **Gross**2                                                                                |   | **Net**3                                                                                          |   | **Gross**2                                                                                                    |   | **Net**3 |   | **Gross**2 |   | **Net**3 |   |
| **North                America**                                                |   |                                                                                      |   |                                                                                              |   |                                                                                                          |   |   |   |   |   |   |   |
| North                American Natural Gas - conventional oil and  gas |   |                                                                                      | 926    |                                                                                              |   | 744                                                                                                           |   |   | 5,240 |   |   | 3,575 |   |   | 6,166 |   |   | 4,319 |   |
| East                Coast Oil - conventional oil                           |   |                                                                                      | 91     |                                                                                              |   | 23                                                                                                            |   |   | - |   |   | - |   |   | 91 |   |   | 23 |   |
| Oil                Sands - *in situ* bitumen recovery                      |   |                                                                                      | 42     |                                                                                              |   | 42                                                                                                            |   |   | - |   |   | - |   |   | 42 |   |   | 42 |   |
| Total                North America                                              |   |                                                                                      | 1,059  |                                                                                              |   | 809                                                                                                           |   |   | 5,240 |   |   | 3,575 |   |   | 6,299 |   |   | 4,384 |   |
| **International**                                                               |   |                                                                                      |   |                                                                                              |   |                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Northwest                Europe - conventional oil and gas                 |   |                                                                                      | 42     |                                                                                              |   | 17                                                                                                            |   |   | 31 |   |   | 4 |   |   | 73 |   |   | 21 |   |
| North                Africa/Near East - conventional oil and gas           |   |                                                                                      | 237    |                                                                                              |   | 109                                                                                                           |   |   | - |   |   | - |   |   | 237 |   |   | 109 |   |
| Northern                Latin America - natural gas                        |   |                                                                                      | -      |                                                                                              |   | -                                                                                                             |   |   | 9 |   |   | 2 |   |   | 9 |   |   | 2 |   |
| Total                International                                              |   |                                                                                      | 279    |                                                                                              |   | 126                                                                                                           |   |   | 40 |   |   | 6 |   |   | 319 |   |   | 132 |   |
| **Total                productive wells from continuing operations**            |   |                                                                                      |   |                                                                                              |   |                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Discontinued                operations**                                      |   |                                                                                      | -      |                                                                                              |   | -                                                                                                             |   |   | - |   |   | - |   |   | - |   |   | - |   |
| **Total                productive wells**                                       |   |                                                                                      | 1,338  |                                                                                              |   | 935                                                                                                           |   |   | 5,280 |   |   | 3,581 |   |   | 6,618 |   |   | 4,516 |   |

----

***Oil      and Natural Gas Rights***

**OIL      AND GAS RIGHTS AT DECEMBER 31, 2006**

|                                                | **                            Developed Lands**1 | **                          Undeveloped Lands**1 | **         Total**                |
|-----------------------------------------------------|--------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------|
|                                                | **                           2006**                   |                             2005       | **                         2006** |                            2005 | **                          2006** |                             2005 |
| *(millions                of acres)*                | **Gross**2                                                                                                   | **Net**3                                                                                           | Gross2                                                                         | Net3 | **Gross**2 | **Net**3 | Gross2 | Net3 | **Gross**2 | **Net**3 | Gross2 | Net3 |
| **Canada**                                          |                                                                                                         |                                                                                               |                                                                           |   |   |   |   |   |   |   |   |   |
| Mainland                Canada                      | **2.2**                                                                                                      | **1.1**                                                                                            | 2.1                                                                            | 1.2 | **2.6** | **2.1** | 3.1 | 2.6 | **4.8** | **3.2** | 5.2 | 3.8 |
| Oil                Sands                            | **0.4**                                                                                                      | **0.2**                                                                                            | 0.4                                                                            | 0.2 | **0.4** | **0.3** | 0.3 | 0.2 | **0.8** | **0.5** | 0.7 | 0.4 |
| East                Coast Oil offshore              | **0.1**                                                                                                      | **-**                                                                                              | 0.1                                                                            | - | **2.0** | **0.7** | 2.4 | 0.9 | **2.1** | **0.7** | 2.5 | 0.9 |
| Other                frontier4                      | **-**                                                                                                        | **-**                                                                                              | -                                                                              | - | **8.9** | **7.1** | 9.0 | 7.1 | **8.9** | **7.1** | 9.0 | 7.1 |
| **Total                Canada**                     | **2.7**                                                                                                      | **1.3**                                                                                            | 2.6                                                                            | 1.4 | **13.9** | **10.2** | 14.8 | 10.8 | **16.6** | **11.5** | 17.4 | 12.2 |
| **United States**5                             | **0.1**                                                                                                      | **0.1**                                                                                            | 0.1                                                                            | - | **2.8** | **1.2** | 2.4 | 1.4 | **2.9** | **1.3** | 2.5 | 1.4 |
| **International**                                   |                                                                                                         |                                                                                               |                                                                           |   |   |   |   |   |   |   |   |   |
| North                Africa/Near East               | **0.4**                                                                                                      | **0.2**                                                                                            | 0.4                                                                            | 0.2 | **26.9** | **21.4** | 25.8 | 20.0 | **27.3** | **21.6** | 26.2 | 20.2 |
| Northwest                Europe                     | **0.1**                                                                                                      | **0.1**                                                                                            | 0.1                                                                            | - | **2.4** | **0.8** | 2.4 | 1.0 | **2.5** | **0.9** | 2.5 | 1.0 |
| Northern                Latin America               | **0.1**                                                                                                      | **-**                                                                                              | 0.1                                                                            | - | **1.2** | **1.0** | 1.2 | 1.0 | **1.3** | **1.0** | 1.3 | 1.0 |
| **Total                International**              | **0.6**                                                                                                      | **0.3**                                                                                            | 0.6                                                                            | 0.2 | **30.5** | **23.2** | 29.4 | 22.0 | **31.1** | **23.5** | 30.0 | 22.2 |
| **Total                from continuing operations** | **3.4**                                                                                                      | **1.7**                                                                                            | 3.3                                                                            | 1.6 | **47.2** | **34.6** | 46.6 | 34.2 | **50.6** | **36.3** | 49.9 | 35.8 |
| **Discontinued                operations**          | **-**                                                                                                        | **-**                                                                                              | 0.5                                                                            | 0.2 | **-** | **-** | - | - | **-** | **-** | 0.5 | 0.2 |
| **Total**                                           | **3.4**                                                                                                      | **1.7**                                                                                            | 3.8                                                                            | 1.8 | **47.2** | **34.6** | 46.6 | 34.2 | **50.6** | **36.3** | 50.4 | 36.0 |

***Work      Commitments***

**WORK      COMMITMENTS AS AT DECEMBER 31, 2006**

*(millions      of Canadian dollars)*

|                                                                   |   | **Petro-Canada                  Share of Total Work Commitments** |   | **Petro-Canada                  Share of Total Work Commitments to be Incurred in                  2007**1 |   |
|------------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------|--------|
| **Mainland                  Canada**                                   |   |                                                              |   |                                                                                                       |   |
| Mackenzie                  Delta/Corridor region                       |   | $                                                                 | 14.9   |                                                                                                       | $      | - |   |
| **East                  Coast offshore**                               |   |                                                              | 15.0   |                                                                                                       |   | 8.0 |   |
| **International**                                                      |   |                                                              |   |                                                                                                       |   |   |   |
| Northern                  Latin America                                |   |                                                              | 7.7    |                                                                                                       |   | 3.2 |   |
| Northwest                  Europe                                      |   |                                                              | 70.5   |                                                                                                       |   | 53.3 |   |
| North                  Africa/Near East                                |   |                                                              | 23.6   |                                                                                                       |   | 23.6 |   |
| **Total                  work commitments from continuing operations** |   |                                                              | 131.7  |                                                                                                       |   | 88.1 |   |
| **Discontinued                  operations**                           |   |                                                              | -      |                                                                                                       |   | - |   |
| **Total                  work commitments**                            |   | $                                                                 | 131.7  |                                                                                                       | $      | 88.1 |   |

----

***Land      Expiries***

**LAND      EXPIRIES IN 2007**

*(millions      of acres)*

|                                            |   | **Gross**1 |   | **Net**2 |   |
|-------------------------------------------------|--------|------------|--------|----------|--------|
| **North                  American Natural Gas** |   |       | 0.8    |     |   | 0.6 |   |
| **East                  Coast Oil**             |   |       | 0.5    |     |   | 0.2 |   |
| **Oil                  Sands**                  |   |       | 0.2    |     |   | 0.1 |   |
| **International**                               |   |       | -      |     |   | - |   |
| **Total                  expiries in 200****7** |   |       | 1.5    |     |   | 0.9 |   |

----

***Drilling      Activity***

**EXPLORATION      AND DEVELOPMENT WELLS DRILLED**

|                                                    | **                           2006** |                           2005 |                           2004 |
|---------------------------------------------------------|--------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|
|                                                    | **Gross**1                                                                                 | **Net**2                                                                         | Gross1                                                                           | Net2 | Gross1 | Net2 |
| **NORTH                AMERICAN NATURAL GAS**           |                                                                                       |                                                                             |                                                                             |   |   |   |
| **Western                Canada and U.S. Rockies** |                                                                                       |                                                                             |                                                                             |   |   |   |
| Exploration                wells3                       |                                                                                       |                                                                             |                                                                             |   |   |   |
| Oil                                                     | **3**                                                                                      | **3**                                                                            | -                                                                                | - | 2 | - |
| Natural                gas                              | **18**                                                                                     | **14**                                                                           | 48                                                                               | 31 | 53 | 35 |
| Dry4                                                    | **20**                                                                                     | **19**                                                                           | 21                                                                               | 15 | 19 | 14 |
| Subtotal                                                | **41**                                                                                     | **36**                                                                           | 69                                                                               | 46 | 74 | 49 |
| Development                wells5                       |                                                                                       |                                                                             |                                                                             |   |   |   |
| Oil                                                     | **75**                                                                                     | **68**                                                                           | 4                                                                                | 2 | 5 | 2 |
| Natural                gas                              | **551**                                                                                    | **413**                                                                          | 666                                                                              | 437 | 589 | 461 |
| Dry                                                     | **9**                                                                                      | **6**                                                                            | 4                                                                                | 3 | 7 | 5 |
| Subtotal                                                | **635**                                                                                    | **487**                                                                          | 674                                                                              | 442 | 601 | 468 |
| **Total                North American Natural Gas**     | **676**                                                                                    | **523**                                                                          | 743                                                                              | 488 | 675 | 517 |
| **EAST                COAST OIL**                       |                                                                                       |                                                                             |                                                                             |   |   |   |
| Exploration                wells3                       |                                                                                       |                                                                             |                                                                             |   |   |   |
| Oil                                                     | **3**                                                                                      | **1**                                                                            | 2                                                                                | 1 | - | - |
| Dry4                                                    | **-**                                                                                      | **-**                                                                            | -                                                                                | - | - | - |
| Subtotal                                                | **3**                                                                                      | **1**                                                                            | 2                                                                                | 1 | - | - |
| Development                wells5                       |                                                                                       |                                                                             |                                                                             |   |   |   |
| Oil                                                     | **10**                                                                                     | **3**                                                                            | 13                                                                               | 3 | 17 | 4 |
| Dry                                                     | **-**                                                                                      | **-**                                                                            | -                                                                                | - | - | - |
| Subtotal                                                | **10**                                                                                     | **3**                                                                            | 13                                                                               | 3 | 17 | 4 |
| **Total                East Coast Oil**                 | **13**                                                                                     | **4**                                                                            | 15                                                                               | 4 | 17 | 4 |
| **OIL                SANDS**                            |                                                                                       |                                                                             |                                                                             |   |   |   |
| Development                wells5                       |                                                                                       |                                                                             |                                                                             |   |   |   |
| Bitumen                                                 | **-**                                                                                      | **-**                                                                            | 46                                                                               | 46 | - | - |
| **Total                Oil Sands**                      | **-**                                                                                      | **-**                                                                            | 46                                                                               | 46 | - | - |

----

**EXPLORATION      AND DEVELOPMENT WELLS DRILLED**

|                                                              | **                          2006** |                          2005 |           2004 |
|-------------------------------------------------------------------|--------------------------------------------------------------------------------------|----------------------------------------------------------------------------|------------------------------------------------------------------|
|                                                              | **Gross**1                                                                           | **Net**2                                                                   | Gross1                                                           | Net2 | Gross1 | Net2 |
| **INTERNATIONAL -                Continuing Operations**     |                                                                                 |                                                                       |                                                             |   |   |   |
| Exploration                wells3                                 |                                                                                 |                                                                       |                                                             |   |   |   |
| Oil                                                               |                                                                                 |                                                                       |                                                             |   |   |   |
| Northwest                Europe                                   | **-**                                                                                | **-**                                                                      | 4                                                                | 3 | - | - |
| North                Africa/Near East                             | **1**                                                                                | **1**                                                                      | 2                                                                | 1 | 2 | 1 |
| Natural                gas                                        |                                                                                 |                                                                       |                                                             |   |   |   |
| Northwest                Europe                                   | **1**                                                                                | **-**                                                                      | -                                                                | - | - | - |
| Northern                Latin America                             | **-**                                                                                | **-**                                                                      | -                                                                | - | 1 | - |
| Dry4                                                              |                                                                                 |                                                                       |                                                             |   |   |   |
| Northwest                Europe                                   | **2**                                                                                | **-**                                                                      | -                                                                | - | 4 | 1 |
| North                Africa/Near East                             | **1**                                                                                | **1**                                                                      | 4                                                                | 2 | 1 | 1 |
| Subtotal                                                          | **5**                                                                                | **2**                                                                      | 10                                                               | 6 | 8 | 3 |
| Development                wells5                                 |                                                                                 |                                                                       |                                                             |   |   |   |
| Oil                                                               |                                                                                 |                                                                       |                                                             |   |   |   |
| Northwest                Europe                                   | **18**                                                                               | **6**                                                                      | 4                                                                | 1 | 9 | 7 |
| North                Africa/Near East                             | **5**                                                                                | **2**                                                                      | 7                                                                | 4 | 6 | 3 |
| Natural                gas                                        |                                                                                 |                                                                       |                                                             |   |   |   |
| Northwest                Europe                                   | **-**                                                                                | **-**                                                                      | 1                                                                | - | 1 | - |
| Northern                Latin America                             | **8**                                                                                | **1**                                                                      | -                                                                | - | - | - |
| Dry                                                               |                                                                                 |                                                                       |                                                             |   |   |   |
| Northwest                Europe                                   | **1**                                                                                | **-**                                                                      | -                                                                | - | 1 | - |
| Northern                Latin America                             | **-**                                                                                | **-**                                                                      | -                                                                | - | 1 | - |
| Subtotal                                                          | **32**                                                                               | **9**                                                                      | 12                                                               | 5 | 18 | 10 |
| **Total                International**                            | **37**                                                                               | **11**                                                                     | 22                                                               | 11 | 26 | 13 |
| **Total                wells drilled from continuing operations** | **726**                                                                              | **538**                                                                    | 826                                                              | 549 | 718 | 534 |
| **DISCONTINUED                OPERATIONS**                        |                                                                                 |                                                                       |                                                             |   |   |   |
| Development                wells5                                 |                                                                                 |                                                                       |                                                             |   |   |   |
| Oil                                                               | **-**                                                                                | **-**                                                                      | 44                                                               | 15 | 39 | 13 |
| Dry                                                               | **-**                                                                                | **-**                                                                      | 5                                                                | 2 | 9 | 4 |
| **Total                discontinued operations**                  | **-**                                                                                | **-**                                                                      | 49                                                               | 17 | 48 | 17 |
| **Total                wells drilled**                            | **726**                                                                              | **538**                                                                    | 875                                                              | 566 | 766 | 551 |

----

**Downstream**

***Business      Summary and Strategy***

-  achieving            and maintaining first quartile operating performance in all            areas 
-  advancing              Petro-Canada as the "brand of choice" for Canadian gasoline              consumers 
-  increasing                sales of high margin specialty                lubricants 

***Refining      and Supply***

----

**RATED      CAPACITY OF REFINERIES AND AVERAGE DAILY CRUDE OIL      PROCESSED**

*(thousands      of m*
*3*

*/d)*

|                                 |                           Average Volumes of                          Crude Oil Processed/Calendar Day | Daily                Rated Capacity1 |
|--------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|
|                                 |                              Years Ended December 31,                                                                                |                                 |
| **Refinery                Location** | **2006**                                                                                                                                                                                                   | 2005                                 | 2004 | **As                at December 31, 2006** |
| Edmonton,                Alberta     | **18.9**                                                                                                                                                                                                   | 20.8                                 | 19.6 | 19.9 |
| Montreal,                Quebec2     | **18.9**                                                                                                                                                                                                   | 18.1                                 | 16.0 | 20.6 |
| Oakville,                Ontario3    | **-**                                                                                                                                                                                                      | 2.0                                  | 12.6 | - |
| **Total**                            | **37.8**                                                                                                                                                                                                   | 40.9                                 | 48.2 | 40.5 |

***Edmonton      Refinery***

***Montreal      Refinery***

***Oakville****Refinery***

----

***ParaChem      Chemicals Plant***

***Supply      and Distribution***

***Sales      and Marketing***

----

**AVERAGE      DAILY SALES OF PETROLEUM PRODUCTS**

*(thousands      of m*
*3*

*/d)*

|                               |                           Years Ended December 31, |
|------------------------------------|-----------------------------------------------------------------------------------------------------------|
|                               | **2006**                                                                                                  | 2005 | 2004 |
| Gasoline1                          | **24.2**                                                                                                  | 24.4 | 24.7 |
| Middle                distillates2 | **19.6**                                                                                                  | 19.7 | 20.2 |
| Other3                             | **8.7**                                                                                                   | 8.7 | 11.7 |
| **Total**                          | **52.5**                                                                                                  | 52.8 | 56.6 |

**REFINING      AND MARKETING REVENUES**

*(millions      of Canadian dollars)*

|                               |                        Years Ended December 31, |   |
|------------------------------------|-----------------------------------------------------------------------------------------|--------|
|                               |  **2006**                                                                     |   |  2005  |  2004  |   |
| Gasoline1                          |                                                                                    | **$**  | **5,481** |   | $ | 5,027 |   | $ | 4,218 |   |
| Middle                distillates2 |                                                                                    |   | **4,537** |   |   | 4,244 |   |   | 3,262 |   |
| Other3                             |                                                                                    |   | **2,363** |   |   | 2,081 |   |   | 1,954 |   |
| **Total**                          |                                                                                    | **$**  | **12,381** |   | $ | 11,352 |   | $ | 9,434 |   |

***Retail***

***Wholesale***

----

***Lubricants***

***Pipelines***

----

***Link      to Petro-Canada's Corporate and Strategic      Priorities***

|                                                                                                      | **2006                RESULTS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | **2007                GOALS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|-----------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **DELIVERING                PROFITABLE GROWTH WITH A FOCUS ON OPERATED, LONG-LIFE                ASSETS** | -  completed                    lubricant plant 25% expansion  
-  completed                    detailed engineering and 18% of the Edmonton refinery conversion                    project                                                                                                                                                                                                                                                                                                                                                                                             | -  continue                    the Edmonton refinery conversion project to enable the planned                    startup                    in 2008 
-  complete                    Montreal coker feasibility study for investment decision in 2007                     
-  continue                    to invest in smaller scale refinery yield and reliability improvement                    projects 
-  continue                    to integrate the Montreal refinery and the ParaChem Chemicals                    L.P.                    plant |
| **DRIVING                FOR FIRST QUARTILE OPERATION OF OUR ASSETS**                                     | -  achieved                    a combined reliability index of 95 at the Company's two refineries,                    above 90 for a second year in a row  
-  completed                    multi-year project to produce cleaner burning fuels at                    refineries 
-  maintained                    leading share of major retail urban market 
-  grew                    convenience store sales by 8% and same-store sales by 5%, compared                    with                    2005 
-  achieved                    75% high margin lubricant sales volume mix | -  continue                    to focus on safety and refinery reliability 
-  increase                    retail non-petroleum revenue  
-  grow                    high margin lubricants sales volume                                                                                                                                                                                                                                                                                                                                                  |
| **CONTINUING                TO WORK AT BEING A RESPONSIBLE COMPANY**                                      | -  reduced                    TRIF by 3%, compared with 2005 
-  reduced                    regulatory compliance exceedances by 17%, compared with                    2005                                                                                                                                                                                                                                                                                                                                                                                                                  | -  maintain                    focus on TRIF and regulatory compliance exceedances 
-  meet                    provincial ethanol regulations 
-  continue                    focus on community relations, including establishment of Community                    Liaison Committee in Montreal 
-  continue                    to look for partnerships with Aboriginal communities on retail                    opportunities                                                                                                                         |

----

**Research      and Development**

**Human      Resources**

**Social      and Environmental Policies**

----

**CASH      AND IN-KIND CONTRIBUTIONS OF MORE THAN $20 MILLION IN 2006**

***Highlights***

|                                            |   |                   Years ended December 31, |
|-------------------------------------------------|--------|------------------------------------------------------|
| *(millions                of Canadian dollars)* |   | **2006**                                             |   | 2005 |   | 2004 |   |
| Local                Community Support1         |   | **$**                                                | **6.2** |   | $ | 3.6 |   | $ | 3.1 |   |
| United                Way2                      |   |                                                 | **1.2** |   |   | 1.0 |   |   | 0.8 |   |
| Olympic/Paralympic                              |   |                                                 | **10.7** |   |   | 0.3 |   |   | 0.5 |   |
| International                                   |   |                                                 | **-** |   |   | - |   |   | 0.1 |   |
| Education                                       |   |                                                 | **1.5** |   |   | 1.8 |   |   | 1.6 |   |
| Environment                                     |   |                                                 | **0.6** |   |   | 0.6 |   |   | 0.6 |   |
| **Total**                                       |   | **$**                                                | **20.2** |   | $ | 7.3 |   | $ | 6.7 |   |

**Environmental      Expenditures**

**ENVIRONMENTAL      COSTS - YEAR ENDED DECEMBER 31, 2006**

*(millions      of Canadian dollars)*

|                                         |   | Capital |   | Operating                Expense |   | Total |   |
|----------------------------------------------|--------|---------|--------|----------------------------------|--------|-------|--------|
| Upstream                                     |   | $       | 68     |                             | $      | 106   |   | $ | 174 |   |
| Downstream                                   |   |    | 298    |                             |   | 29    |   |   | 327 |   |
| **Total                environmental costs** |   | $       | 366    |                             | $      | 135   |   | $ | 501 |   |

----

----

**SELECT      FINANCIAL DATA**

**CONSOLIDATED      FINANCIAL INFORMATION**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                             Years Ended December 31, |     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| *(millions                of**Canadian dollars, except per                share**1**amounts)*                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                  | **2006** |   | 2005 |   | 2004 |   |
| **Statement                of earnings data**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                  |     |   |   |   |   |   |
| Revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                  |     |   |   |   |   |   |
| Operating                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                  | **$**    | **18,911** |   | $ | 17,585 |   | $ | 14,270 |   |
| Investment                and other income (expense)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                  |     | **(242** | **)** |   | (806 | ) |   | (312 | ) |
| Total                revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                  |     | **18,669** |   |   | 16,779 |   |   | 13,958 |   |
| Earnings                from continuing operations before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                  |     | **3,972** |   |   | 3,402 |   |   | 3,090 |   |
| Provision                for income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                  |     | **2,384** |   |   | 1,709 |   |   | 1,392 |   |
| Net                earnings from continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                  |     | **1,588** |   |   | 1,693 |   |   | 1,698 |   |
| Net                earnings from discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                  |     | **152** |   |   | 98 |   |   | 59 |   |
| Net                earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                  | **$**    | **1,740** |   | $ | 1,791 |   | $ | 1,757 |   |
| **Earnings**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                  |     |   |   |   |   |   |   |   |   |
| North                American Natural Gas                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                  | **$**    | **402** |   | $ | 660 |   | $ | 500 |   |
| East                Coast Oil                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                  |     | **934** |   |   | 775 |   |   | 711 |   |
| Oil                Sands                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                  |     | **245** |   |   | 112 |   |   | 120 |   |
| International                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                  |     | **22** |   |   | 453 |   |   | 313 |   |
| Downstream                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                  |     | **463** |   |   | 398 |   |   | 310 |   |
| Shared                Services                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                  |     | **(264** | **)** |   | (250 | ) |   | (125 | ) |
| Operating                earnings from continuing operations2,3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                  |     | **1,802** |   |   | 2,148 |   |   | 1,829 |   |
| Foreign                currency translation gain                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                  |     | **1** |   |   | 73 |   |   | 63 |   |
| Unrealized                loss on Buzzard derivative contracts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                  |     | **(240** | **)** |   | (562 | ) |   | (205 | ) |
| Gain                on sale of assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                  |     | **25** |   |   | 34 |   |   | 11 |   |
| Discontinued                operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                  |     | **152** |   |   | 98 |   |   | 59 |   |
| Net                earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                  | **$**    | **1,740** |   | $ | 1,791 |   | $ | 1,757 |   |
| Earnings                per share from continuing operations - basic                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                  | **$**    | **3.15** |   | $ | 3.27 |   | $ | 3.21 |   |
|                                                                                     -                diluted |                                                                                                                                                                                                                  |     | **3.11** |   |   | 3.22 |   |   | 3.17 |   |
| Earnings                per                share                                                                  - basic                                                                                                                                                              |                                                                                                                                                                                                                  |     | **3.45** |   |   | 3.45 |   |   | 3.32 |   |
|                                                                                                    - diluted      |                                                                                                                                                                                                                  |     | **3.41** |   |   | 3.41 |   |   | 3.28 |   |
| Dividends                per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                  |     | **0.40** |   |   | 0.33 |   |   | 0.30 |   |
| Cash                flow from continuing operating activities before changes in non-cash                working capital3                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                  |     | **3,687** |   |   | 3,787 |   |   | 3,425 |   |
| **Balance                sheet data (at end of year)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                  |     |   |   |   |   |   |   |   |   |
| Total                assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                  |     | **22,646** |   |   | 20,655 |   |   | 18,136 |   |
| Debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                  |     | **2,894** |   |   | 2,913 |   |   | 2,580 |   |
| Cash                and cash equivalents4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                  |     | **499** |   |   | 789 |   |   | 170 |   |
| Shareholders'                equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                  |     | **10,441** |   |   | 9,488 |   |   | 8,739 |   |
| Average                capital employed4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                  | **$**    | **12,868** |   | $ | 11,860 |   | $ | 10,533 |   |

----

**QUARTERLY      INFORMATION**

*(millions      of Canadian dollars, except per share amounts)*

|                                                                  |   | **                                       2006****                                     Three Months Ended** |   |                                          2005                                       Three Months Ended |   |
|-----------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                  |   |                                                                                                                                                                                                                                                                                                                                   |   | **Mar. 31**                                                                                                                                                                                                                                                                                                                                       |   | **June 30** |   | **Sept. 30** |   | **Dec. 31** |   |   |   | Mar. 31 |   | June 30 |   | Sept. 30 |   | Dec. 31 |   |
| **Total                revenue from continuing operations**           |   |                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   | **$**  | **4,188** | ** ** | **$** | **4,730** | ** ** | **$** | **5,201** | ** ** | **$** | **4,550** |   |   |   |   | $ | 3,275 |   | $ | 3,945 |   | $ | 4,721 |   | $ | 4,838 |   |
| **Earnings**                                                          |   |                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Upstream                                                              |   |                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| North                American Natural Gas                             |   |                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   | **$**  | **139** | ** ** | **$** | **97** | ** ** | **$** | **75** | ** ** | **$** | **91** |   |   |   |   | $ | 103 |   | $ | 117 |   | $ | 156 |   | $ | 284 |   |
| East                Coast Oil                                         |   |                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   |   | **229** |   |   | **254** |   |   | **190** |   |   | **261** |   |   |   |   |   | 169 |   |   | 208 |   |   | 218 |   |   | 180 |   |
| Oil                Sands                                              |   |                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   |   | **(19** | **)** |   | **101** |   |   | **108** |   |   | **55** |   |   |   |   |   | (19 | ) |   | 34 |   |   | 82 |   |   | 15 |   |
| International                                                         |   |                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   |   | **(132** | **)** |   | **61** |   |   | **60** |   |   | **33** |   |   |   |   |   | 105 |   |   | 93 |   |   | 104 |   |   | 151 |   |
| Downstream                                                            |   |                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   |   | **73** |   |   | **136** |   |   | **176** |   |   | **78** |   |   |   |   |   | 113 |   |   | 80 |   |   | 98 |   |   | 107 |   |
| Shared                Services                                        |   |                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   |   | **(88** | **)** |   | **(117** | **)** |   | **(12** | **)** |   | **(47** | **)** |   |   |   |   | (44 | ) |   | (56 | ) |   | (61 | ) |   | (89 | ) |
| Operating                earnings from continuing operations          |   |                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   |   | **202** |   |   | **532** |   |   | **597** |   |   | **471** |   |   |   |   |   | 427 |   |   | 476 |   |   | 597 |   |   | 648 |   |
| Foreign                currency translation gain (loss)               |   |                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   |   | **(1** | **)** |   | **61** |   |   | **(1** | **)** |   | **(58** | **)** |   |   |   |   | (4 | ) |   | 8 |   |   | 74 |   |   | (5 | ) |
| Unrealized                gain (loss) on Buzzard derivative contracts |   |                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   |   | **(149** | **)** |   | **(137** | **)** |   | **79** |   |   | **(33** | **)** |   |   |   |   | (313 | ) |   | (171 | ) |   | (85 | ) |   | 7 |   |
| Gain                on sale of assets                                 |   |                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   |   | **2** |   |   | **16** |   |   | **3** |   |   | **4** |   |   |   |   |   | - |   |   | 9 |   |   | 7 |   |   | 18 |   |
| Discontinued                operations                                |   |                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   |   | **152** |   |   | **-** |   |   | **-** |   |   | **-** |   |   |   |   |   | 8 |   |   | 23 |   |   | 21 |   |   | 46 |   |
| **Net                earnings**                                       |   |                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   | **$**  | **206** | ** ** | **$** | **472** | ** ** | **$** | **678** | ** ** | **$** | **384** | ** ** |   |   |   | $ | 118 |   | $ | 345 |   | $ | 614 |   | $ | 714 |   |
| **Earnings                per share from continuing operations**1     |   |                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                 |   |                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   | **$**  | **0.11** | ** ** | **$** | **0.93** | ** ** | **$** | **1.36** | ** ** | **$** | **0.77** |   |   |   |   | $ | 0.21 |   | $ | 0.62 |   | $ | 1.14 |   | $ | 1.29 |   |
| Diluted                                                               |   |                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   | **$**  | **0.10** | ** ** | **$** | **0.92** | ** ** | **$** | **1.34** | ** ** | **$** | **0.76** | ** ** |   |   |   | $ | 0.21 |   | $ | 0.61 |   | $ | 1.13 |   | $ | 1.28 |   |
| **Earnings                per share**1                                |   |                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                 |   |                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   | **$**  | **0.40** | ** ** | **$** | **0.93** | ** ** | **$** | **1.36** | ** ** | **$** | **0.77** | ** ** |   |   |   | $ | 0.23 |   | $ | 0.66 |   | $ | 1.19 |   | $ | 1.38 |   |
| Diluted                                                               |   |                                                                                                                                                                                                                                                                                                                                   |   |                                                                                                                                                                                                                                                                                                                                                   | **$**  | **0.40** | ** ** | **$** | **0.92** | ** ** | **$** | **1.34** | ** ** | **$** | **0.76** |   |   |   |   | $ | 0.22 |   | $ | 0.66 |   | $ | 1.17 |   | $ | 1.36 |   |

----

**Capital      Expenditures on Property, Plant and Equipment and      Exploration**

**CAPITAL      EXPENDITURES ON PROPERTY, PLANT AND EQUIPMENT AND      EXPLORATION**

*(millions      of Canadian dollars)*

|                                                                                                                                                    |   | **2006** |      | 2005   |   | 2004   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|-----------|--------|--------|--------|--------|
| **Exploration**                                                                                                                                         |   |     |      |   |   |   |   |
| North                American Natural Gas                                                                                                               |   | **$**    | **160**   |   | $      | 173    |   | $ | 157 |   |
| East                Coast Oil                                                                                                                           |   |     | **3**     |   |   | 12     |   |   | - |   |
| Oil                Sands                                                                                                                                |   |     | **6**     |   |   | 32     |   |   | 15 |   |
| International                                                                                                                                           |   |     |      |   |   |   |   |   |   |   |
| Northwest                Europe                                                                                                                         |   |     | **37**    |   |   | 37     |   |   | 48 |   |
| North                Africa/Near East                                                                                                                   |   |     | **37**    |   |   | 29     |   |   | 19 |   |
| Northern                Latin America                                                                                                                   |   |     | **3**     |   |   | 7      |   |   | 3 |   |
| **Total                exploration**                                                                                                                    |   |     | **246**   |   |   | 290    |   |   | 242 |   |
| **Development**                                                                                                                                         |   |     |      |   |   |   |   |   |   |   |
| North                American Natural Gas                                                                                                               |   |     | **523**   |   |   | 496    |   |   | 419 |   |
| East                Coast Oil                                                                                                                           |   |     | **253**   |   |   | 302    |   |   | 275 |   |
| Oil                Sands                                                                                                                                |   |     | **269**   |   |   | 432    |   |   | 381 |   |
| International                                                                                                                                           |   |     |      |   |   |   |   |   |   |   |
| Northwest                Europe                                                                                                                         |   |     | **551**   |   |   | 525    |   |   | 322 |   |
| North                Africa/Near East                                                                                                                   |   |     | **83**    |   |   | 70     |   |   | 71 |   |
| Northern                Latin America                                                                                                                   |   |     | **49**    |   |   | 28     |   |   | 22 |   |
| **Total                development**                                                                                                                    |   |     | **1,728** |   |   | 1,853  |   |   | 1,490 |   |
| **Property                acquisitions**                                                                                                                |   |     |      |   |   |   |   |   |   |   |
| North                American Natural Gas                                                                                                               |   |     | **105**   |   |   | 44     |   |   | 90 |   |
| Oil                Sands                                                                                                                                |   |     | **102**   |   |   | 308    |   |   | 1 |   |
| International                                                                                                                                           |   |     |      |   |   |   |   |   |   |   |
| Northwest                Europe                                                                                                                         |   |     | **-**     |   |   | -      |   |   | 1,222 |   |
| **Total                property acquisitions**                                                                                                          |   |     | **207**   |   |   | 352    |   |   | 1,313 |   |
| **Downstream**                                                                                                                                          |   |     |      |   |   |   |   |   |   |   |
| Refining                and supply                                                                                                                      |   |     | **1,038** |   |   | 883    |   |   | 656 |   |
| Sales,                marketing and other                                                                                                               |   |     | **142**   |   |   | 108    |   |   | 171 |   |
| Lubricants                                                                                                                                              |   |     | **49**    |   |   | 62     |   |   | 12 |   |
| **Total                Downstream**                                                                                                                     |   |     | **1,229** |   |   | 1,053  |   |   | 839 |   |
| **Shared                Services**                                                                                                                      |   |     | **24**    |   |   | 12     |   |   | 9 |   |
| **Total                capital expenditures on property, plant and equipment and exploration                from                continuing operations** |   |     | **3,434** |   |   | 3,560  |   |   | 3,893                1 |   |
| **Discontinued                operations**                                                                                                              |   |     | **1**     |   |   | 46     |   |   | 62 |   |
| **Total                capital expenditures on property, plant and equipment and                exploration**                                      |   | **$**    | **3,435** |   | $      | 3,606  |   | $ | 3,9551 |   |

----

| **2007****Capital Outlook**                                      |   | *(millions                of Canadian dollars)* |   |
|------------------------------------------------------------------|--------|-------------------------------------------------|--------|
| Regulatory                compliance                             |   | $                                               | 100    |   |
| Enhancing                existing assets                         |   |                                            | 240    |   |
| Improving                base business profitability             |   |                                            | 160    |   |
| Reserves                replacement in core areas                |   |                                            | 1,025  |   |
| New                growth projects                               |   |                                            | 2,020  |   |
| Exploration                and new ventures for long-term growth |   |                                            | 515    |   |
| **Total                continuing operations**                   |   | $                                               | 4,060  |   |

| **Capital                Investment by Business - 2007 Outlook** |   | *(millions                of Canadian dollars)* |   |
|------------------------------------------------------------------|--------|-------------------------------------------------|--------|
| **Upstream**                                                     |   |                                            |   |
|   North                American Natural Gas            |   | $                                               | 790    |   |
|   East                Coast Oil                        |   |                                            | 210    |   |
|   Oil                Sands                             |   |                                            | 770    |   |
|   International                                        |   |                                            | 865    |   |
| Subtotal                                                         |   |                                            | 2,635  |   |
| **Downstream**                                                   |   |                                            |   |   |
|   Refining                and Supply                   |   |                                            | 1,215  |   |
|   Sales                and Marketing                   |   |                                            | 150    |   |
|   Lubricants                                           |   |                                            | 25     |   |
| Subtotal                                                         |   |                                            | 1,390  |   |
| **Shared                Services**                               |   |                                            | 35     |   |
| **Total                Continuing Operations**                   |   | $                                               | 4,060  |   |

**Dividends**

----

**CAPITAL      STRUCTURE**

**General      Description of Capital Structure**

**Constraints**

**Ownership,      Voting and Other Restrictions**

*Petro-Canada Public Participation Act*

*Petro-Canada Public Participation Act*

----

**Credit      Ratings**

**PETRO-CANADA'S      CREDIT RATINGS**

|                            | Moody's                Investors Service                (Moody’s) | Standard &                Poor's(S&P) | Dominion Bond                Rating Service (DBRS) |
|---------------------------------|-------------------------------------------------------------------------|----------------------------------------------------|---------------------------------------------------------|
| Outlook                         | Stable                                                                  | Stable                                             | Stable                                                  |
| Senior                unsecured | Baa2                                                                    | BBB                                                | A                (low)                                  |
| Short                term       | -                                                                       | -                                                  | R-1                (low)                                |

----

**MARKET      FOR SECURITIES**

**Trading      Price and Volume**

**PETRO-CANADA      SHARE TRADING ACTIVITY ON THE TSX**

**AND      THE NYSE IN 2006**

|         | Toronto                  Stock Exchange                                                   |                          | New York                  Stock Exchange |
|--------------|-------------------------------------------------------------------------------------------|-------------------------------|-----------------------------------------------|
|         | Share                  Price Trading Range*(Canadian                  dollars per share)* | Share                  Volume |                                          | Share                  Price Trading Range*(U.S. dollars                  per share)* | Share                  Volume |
|         |                                                                                      | High                          |                                          | Low |   | Close | *(millions)* |   |   | High |   | Low |   | Close | *(millions)* |
| **200****6** |                                                                                      |                          |                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| January      | $                                                                                         | 55.42                         | $                                             | 48.00 | $ | 54.51 | 39.8 |   | $ | 48.33 | $ | 41.20 | $ | 47.93 | 8.9 |
| February     |                                                                                      | 58.59                         |                                          | 51.54 |   | 52.06 | 55.6 |   |   | 51.08 |   | 44.59 |   | 45.76 | 14.2 |
| March        |                                                                                      | 56.54                         |                                          | 51.65 |   | 55.38 | 44.9 |   |   | 49.11 |   | 44.60 |   | 47.59 | 10.7 |
| April        |                                                                                      | 57.80                         |                                          | 54.71 |   | 55.00 | 32.5 |   |   | 51.11 |   | 47.92 |   | 49.18 | 8.0 |
| May          |                                                                                      | 55.40                         |                                          | 46.58 |   | 50.02 | 49.1 |   |   | 50.11 |   | 41.69 |   | 45.97 | 14.7 |
| June         |                                                                                      | 52.96                         |                                          | 46.11 |   | 52.96 | 42.6 |   |   | 47.41 |   | 41.31 |   | 47.41 | 15.5 |
| July         |                                                                                      | 53.30                         |                                          | 49.76 |   | 50.58 | 27.3 |   |   | 48.24 |   | 43.73 |   | 44.75 | 9.4 |
| August       |                                                                                      | 52.20                         |                                          | 46.69 |   | 47.20 | 35.7 |   |   | 46.53 |   | 42.06 |   | 42.72 | 9.3 |
| September    |                                                                                      | 48.35                         |                                          | 42.38 |   | 45.01 | 48.1 |   |   | 43.60 |   | 37.78 |   | 40.33 | 13.6 |
| October      |                                                                                      | 48.80                         |                                          | 41.91 |   | 47.88 | 41.5 |   |   | 43.54 |   | 37.37 |   | 42.59 | 13.3 |
| November     |                                                                                      | 51.70                         |                                          | 47.24 |   | 51.49 | 35.5 |   |   | 45.48 |   | 41.67 |   | 45.20 | 10.3 |
| December     | $                                                                                         | 51.64                         | $                                             | 47.00 | $ | 47.75 | 31.7 |   | $ | 45.18 | $ | 40.78 | $ | 41.04 | 10.6 |

**Prior      Sales**

----

**DIRECTORS      AND OFFICERS**

**Directors**

|  **ANGUS                  A. BRUNEAU, O.C.**Independent1Age:                  71St.                  John's, Newfoundland and Labrador, CanadaDirector                  since 1996 | Angus                  Bruneau retired in May 2006 as Chairman of the Board of Directors                  of                  Fortis Inc. (utilities and services corporation). He also serves as a                  Director of Aurora Energy Resources Inc. He is an executive member of                  a number of not-for-profit organizations, including Sustainable                  Development Technology Canada and Canadian Institute for Child                  Health. Dr. Bruneau is a Professional Engineer and holds a Bachelor                  of Science, D.Eng, and a PhD. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Board                  and Committee Membership                                                                                                                                         | Attendance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Board                  of Directors                                                                                                                                                     | 8                  of 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 89% |
| Environment,                  Health and Safety Committee (Chair)                                                                                                                       | 3                  of 3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 100% |
| Audit,                  Finance and Risk Committee                                                                                                                                      | 7                  of 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 100% |
| Securities                  Held                                                                                                                                                        |
| Year                                                                                                                                                                                    | Common                  Shares2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | DSUs3 | Total                  of CommonShares                  and DSUs | Total                  Market Value ofCommon                  Shares and DSUs4 | Minimum                  Required5 |
| 2006                                                                                                                                                                                    | 5,539                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 10,922 | 16,461 | $                  627,412 | $300,000 |
| 2005                                                                                                                                                                                    | 5,527                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 10,819 | 16,346 | $                  786,013 |
| Options                  Held: None. Non-employee Directors are not eligible to participate in                  the Company's stock option plan.                                   |
| Other                  Public Board                  Directorships: None                                                                                                           |

|  **GAIL                  COOK-BENNETT**Independent1Age:                  66Toronto,                  Ontario, CanadaDirector                  since 1991 | Gail                  Cook-Bennett is Chairperson of the Canada Pension Plan Investment                  Board                  (public pension plan investment). Dr. Cook-Bennett earned a Doctorate                  in Economics and holds a Doctor of Laws (honoris causa) from Carleton                  University. She is a Fellow of the Institute of Corporate                  Directors.  |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Board                  and Committee Membership                                                                                                               | Attendance                                                                                                                                                                                                                                                                                                                                                                                                     |
| Board                  of Directors                                                                                                                           | 9                  of 9                                                                                                                                                                                                                                                                                                                                                                                        | 100% |
| Audit,                  Finance and Risk Committee                                                                                                            | 7                  of 7                                                                                                                                                                                                                                                                                                                                                                                        | 100% |
| Pension                  Committee (Chair)                                                                                                                    | 2                  of 2                                                                                                                                                                                                                                                                                                                                                                                        | 100% |
| Securities                  Held                                                                                                                              |
| Year                                                                                                                                                          | Common                  Shares2                                                                                                                                                                                                                                                                                                                                                                                | DSUs3 | Total                  of CommonShares                  and DSUs | Total                  Market Value ofCommon                  Shares and DSUs4 | Minimum                  Required5 |
| 2006                                                                                                                                                          | 4,098                                                                                                                                                                                                                                                                                                                                                                                                          | 20,151 | 24,249 | $                  1,157,890 | $300,000 |
| 2005                                                                                                                                                          | 4,098                                                                                                                                                                                                                                                                                                                                                                                                          | 19,998 | 24,096 | $                  874,303 |
| Options                  Held: None. Non-employee Directors are not eligible to participate in                  the Company's stock option plan.         |
| Other                  Public Board Directorships:6 Emera Inc. and Manulife Financial                  Corporation                                            |

----

|  **RICHARD                  J. CURRIE, O.C.**8Independent1Age:                  69Toronto,                  Ontario, CanadaDirector                  since 2003 | Dick                  Currie is Chairman of the Board of Bell Canada Enterprises                  (telecommunications). From 1996 to 2002, he was President and Director                  of                  George Weston Limited (food processing) and from 1976 to 2000,                  President                  and Director of Loblaw Companies Limited (food and distribution).                  Mr. Currie holds a Bachelor of Engineering and a Master of Business                  Administration. He is the Chancellor of the University of                  New Brunswick and a Fellow of the Institute of Corporate                  Directors. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Board                  and Committee Membership                                                                                                                      | Attendance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Board                  of Directors                                                                                                                                  | 7                  of 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 78% |
| Management                  Resources and Compensation Committee                                                                                                     | 3                  of 4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 75% |
| Pension                  Committee                                                                                                                                   | 1                  of 2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 50% |
| Securities                  Held                                                                                                                                     |
| Year                                                                                                                                                                 | Common                  Shares2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | DSUs3 | Total                  of CommonShares                  and DSUs | Total                  Market Value ofCommon                  Shares and DSUs4 | Minimum                  Required5 |
| 2006                                                                                                                                                                 | 50,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 3,165 | 53,165 | $                  2,538,629 | $300,000 |
| 2005                                                                                                                                                                 | 20,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 3,146 | 23,146 | $                  1,040,467 |
| Options                  Held: None. Non-employee Directors are not eligible to participate in                  the Company's stock option plan.                |
| Other                  Public Board Directorships:6 BCE                  Inc.                                                                                        |

|  **CLAUDE                  FONTAINE, Q.C.**Independent1Age:                  65Montreal,                  Quebec, CanadaDirector                  since 1987 | Claude                  Fontaine is counsel to Ogilvy Renault LLP (barristers and solicitors)                  and,                  prior to that, he was a Partner of the firm. He serves as Lead                  Director                  for Optimum General Inc. and is a Director of the Institute of                  Corporate                  Directors (Chair of the Quebec Chapter) and the Montreal Heart                  Institute                  Foundation. Mr. Fontaine holds a Bachelor of Arts, Licence in Law                  (LL.L), and an Institute of Corporate Directors certification. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Board                  and Committee Membership                                                                                                                   | Attendance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Board                  of Directors                                                                                                                               | 9                  of 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 100% |
| Environment,                  Health and Safety Committee                                                                                                         | 3                  of 3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 100% |
| Management                  Resources and Compensation Committee (Chair)                                                                                          | 4                  of 4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 100% |
| Securities                  Held                                                                                                                                  |
| Year                                                                                                                                                              | Common                  Shares2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | DSUs3 | Total                  of CommonShares                  and DSUs | Total                  Market Value ofCommon                  Shares and DSUs4 | Minimum                  Required5 |
| 2006                                                                                                                                                              | 15,929                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 30,221 | 46,150 | $                  2,203,663 | $300,000 |
| 2005                                                                                                                                                              | 15,926                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 28,340 | 44,266 | $                  1,711,042 |
| Options                  Held: None. Non-employee Directors are not eligible to participate in                  the Company's stock option plan.             |
| Other                  Public Board Directorships: Optimum General                  Inc.                                                                          |

|  **PAUL                  HASELDONCKX**Independent1Age:                  58Essen,                  GermanyDirector                  since 2002    | Paul                  Haseldonckx, Corporate Director, is the past Chairman of the Executive                  Board of Veba Oil & Gas GmbH (integrated oil and gas) and                  its predecessor companies. Mr. Haseldonckx holds a Master of                  Science.  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Board                  and Committee Membership                                                                                                       | Attendance                                                                                                                                                                                                                                                                                               |
| Board                  of Directors                                                                                                                   | 9                  of 9                                                                                                                                                                                                                                                                                  | 100% |
| Audit,                  Finance and Risk Committee                                                                                                    | 7                  of 7                                                                                                                                                                                                                                                                                  | 100% |
| Environment,                  Health and Safety Committee                                                                                             | 3                  of 3                                                                                                                                                                                                                                                                                  | 100% |
| Securities                  Held                                                                                                                      |
| Year                                                                                                                                                  | Common                  Shares2                                                                                                                                                                                                                                                                          | DSUs3 | Total                  of CommonShares                  and DSUs | Total                  Market Value ofCommon                  Shares and DSUs4 | Minimum                  Required5 |
| 2006                                                                                                                                                  | 6,022                                                                                                                                                                                                                                                                                                    | 6,119 | 12,141 | $                  579,733 | $300,000 |
| 2005                                                                                                                                                  | 3,001                                                                                                                                                                                                                                                                                                    | 6,076 | 9,077 | $                  347,553 |
| Options                  Held: None. Non-employee Directors are not eligible to participate in                  the Company's stock option plan. |
| Other                  Public Board Directorships: None                                                                                               |

----

|  **THOMAS                  E. KIERANS, O.C.**8Independent1Age:                  66Toronto,                  Ontario, CanadaDirector                  since 1991 | Tom                  Kierans is Chairman of the Canadian Journalism Foundation (non-profit),                  prior to which he was Chairman of CSI Global Markets. Mr. Kierans                  holds a                  Bachelor of Arts (Honours) and a Master of Business Administration                  (Finance, Dean's Honours List), and is a Fellow of the Canadian                  Institute                  of Corporate Directors. He serves as a Director of Mount Sinai                  Hospital,                  the Canadian Institute for Advanced Research and the Social Sciences                  and                  Humanities Research Council. Mr. Kierans also sits on a number of                  advisory boards of for-profit and not-for-profit organizations,                  including                  Lazard (Canada) and the Schulich School of Business, York University. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Board                  and Committee Membership                                                                                                                      | Attendance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Board                  of Directors                                                                                                                                  | 8                  of 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 89% |
| Corporate                  Governance and Nominating Committee                                                                                                       | 4                  of 4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 100% |
| Management                  Resources and Compensation Committee                                                                                                     | 3                  of 4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 75% |
| Securities                  Held                                                                                                                                     |
| Year                                                                                                                                                                 | Common                  Shares2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | DSUs3 | Total                  of CommonShares                  and DSUs | Total                  Market Value ofCommon                  Shares and DSUs4 | Minimum                  Required5 |
| 2006                                                                                                                                                                 | 50,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 6,707 | 56,707 | $                  2,707,759 | $300,000 |
| 2005                                                                                                                                                                 | 40,900                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 6,659 | 47,559 | $                  2,135,456 |
| Options                  Held: None. Non-employee Directors are not eligible to participate in                  the Company's stock option plan.                |
| Other                  Public Board Directorships:6 Manulife Financial                  Corporation                                                                  |

|  **BRIAN                  F. MacNEILL, C.M.**Independent1Age:                  67Calgary,                  Alberta, CanadaDirector                  since 1995           | Brian                  MacNeill is the Chairman of the Board of Directors of Petro-Canada.                  Mr. MacNeill is a Certified Public Accountant and holds a Bachelor                  of                  Commerce. He is a member of the Canadian Institute of Chartered                  Accountants and the Financial Executives Institute. He is also                  a Fellow of                  the Alberta and Ontario Institutes of Chartered Accountants and                  of the                  Institute of Corporate Directors. He is Chair of the Board of Governors                  of                  the University of Calgary. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Board                  and Committee Membership                                                                                                                               | Attendance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Board                  of Directors (Chair)As                  Chair of the Board, Mr. MacNeill is an *ex-officio* member of all                  Committees.                 | 9                  of 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 100% |
| Securities                  Held                                                                                                                                              |
| Year                                                                                                                                                                          | Common                  Shares2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | DSUs3 | Total                  of CommonShares                  and DSUs | Total                  Market Value ofCommon                  Shares and DSUs4 | Minimum                  Required5 |
| 2006                                                                                                                                                                          | 10,200                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 42,573 | 52,773 | $                  2,519,911 | $300,000 |
| 2005                                                                                                                                                                          | 10,200                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 37,266 | 47,466 | $                  1,748,837 |
| Options                  Held: None. Non-employee Directors are not eligible to participate in                  the Company's stock option plan.                         |
| Other                  Public Board Directorships: Toronto-Dominion Bank, Telus Corp. and                  West-Fraser                  Timber Co.                  Ltd. |

|  **MAUREEN                  McCAW**Independent1Age:                  52Edmonton,                  Alberta, CanadaDirector                  since 2004 | Maureen                  McCaw is immediate past President of Leger Marketing (Alberta)                  (marketing                  research), formerly Criterion Research Corp., a company she founded                  in                  1986. Ms. McCaw holds a Bachelor of Arts from the University of                  Alberta.                  She is a past Chair of the Edmonton Chamber of Commerce and also                  serves on                  a number of Alberta Boards and advisory committees. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Board                  and Committee Membership                                                                                                            | Attendance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Board                  of Directors                                                                                                                        | 8                  of 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 89% |
| Corporate                  Governance and Nominating Committee                                                                                             | 2                  of 4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 50% |
| Pension                  Committee                                                                                                                         | 2                  of 2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 100% |
| Securities                  Held                                                                                                                           |
| Year                                                                                                                                                       | Common                  Shares2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | DSUs3 | Total                  of CommonShares                  and DSUs | Total                  Market Value ofCommon                  Shares and DSUs4 | Minimum                  Required5 |
| 2006                                                                                                                                                       | 1,744                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 4,757 | 6,501 | $                  310,423 | $300,000 |
| 2005                                                                                                                                                       | 1,360                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 3,314 | 4,674 | $                  176,650 |
| Options                  Held: None. Non-employee Directors are not eligible to participate in                  the Company's stock option plan.      |
| Other                  Public Board Directorships: None                                                                                                    |

----

|  **PAUL                  D. MELNUK**Independent1Age:                  52St.                  Louis, Missouri, USADirector                  since 2000 | Paul                  Melnuk is Chairman and Chief Executive Officer of Thermadyne Holdings                  Corporation (industrial products) and Managing Partner of FTL Capital                  Partners LLC (merchant banking). He is past President and Chief                  Executive Officer of Bracknell Corporation and Barrick Gold Corporation.                  Mr. Melnuk holds a Bachelor of Commerce. He is a member of the                  Canadian Institute of Chartered Accountants (CICA) and of the World                  Presidents' Organization, St. Louis chapter. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Board                  and Committee Membership                                                                                                            | Attendance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Board                  of Directors                                                                                                                        | 9                  of 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 100% |
| Audit,                  Finance and Risk Committee (Chair)                                                                                                 | 7                  of 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 100% |
| Environment,                  Health and Safety Committee                                                                                                  | 3                  of 3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 100% |
| Securities                  Held                                                                                                                           |
| Year                                                                                                                                                       | Common                  Shares2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | DSUs3 | Total                  of CommonShares                  and DSUs | Total                  Market Value ofCommon                  Shares and DSUs4 | Minimum                  Required5 |
| 2006                                                                                                                                                       | 4,400                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 19,624 | 24,024 | $                  1,147,146 | $300,000 |
| 2005                                                                                                                                                       | 4,400                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 15,904 | 20,304 | $                  748,541 |
| Options                  Held: None. Non-employee Directors are not eligible to participate in                  the Company's stock option plan.      |
| Other                  Public Board Directorships: Thermadyne Holdings                  Corporation                                                        |

|  **GUYLAINE                  SAUCIER, F.C.A, C.M.**7Independent1Age:                  60Montreal,                  Quebec, CanadaDirector                  since 1991 | Guylaine                  Saucier, Corporate Director, is a former Chair of the Board of                  Directors                  of the Canadian Broadcasting Corporation, a former Director of                  the Bank of                  Canada, a former Chair of the Canadian Institute of Chartered Accountants                  (CICA), a former Director of the International Federation of Accountants                  and former Chair of the Joint Committee on Corporate Governance                  established by the CICA, the Toronto Stock Exchange and the Canadian                  Venture Exchange. She was also the first woman to serve as President                  of                  the Quebec Chamber of Commerce. Mme Saucier obtained a Bachelor                  of Arts                  from Collège Marguerite-Bourgeois and a Bachelor of Commerce from the                  École des Hautes Études Commerciales, Université de Montréal. She is a                  Fellow of the Institute of Chartered Accountants and a member of                  the Order                  of Canada. In 2004, she received the Fellowship Award from the                  Institute                  of Corporate Directors. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Board                  and Committee Membership                                                                                                                            | Attendance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Board                  of Directors                                                                                                                                        | 9                  of 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 100% |
| Corporate                  Governance and Nominating Committee (Chair)                                                                                                     | 4                  of 4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 100% |
| Pension                  Committee                                                                                                                                         | 2                  of 2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 100% |
| Securities                  Held                                                                                                                                           |
| Year                                                                                                                                                                       | Common                  Shares2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | DSUs3 | Total                  of CommonShares                  and DSUs | Total                  Market Value ofCommon                  Shares and DSUs4 | Minimum                  Required5 |
| 2006                                                                                                                                                                       | 6,520                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 34,961 | 41,481 | $                  1,980,718 | $300,000 |
| 2005                                                                                                                                                                       | 6,520                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 31,571 | 38,091 | $                  1,382,623 |
| Options                  Held: None. Non-employee Directors are not eligible to participate in                  the Company's stock option plan.                      |
| Other                  Public Board Directorships: AXA Assurance Inc., Bank of Montreal, CHC                  Helicopter Corp. andGroupe                  Areva       |

----

|  **JAMES                  W. SIMPSON**Independent1Age:                  63Danville,                  California, USADirector                  since 2004 | Jim                  Simpson is past President of Chevron Canada Resources (oil and                  gas). He                  serves as Lead Director for Canadian Utilities Limited and is on                  its                  Audit, Governance and, Compensation Committees. Mr. Simpson holds a                  Bachelor of Science and Master of Science, and graduated from the                  Program                  for Senior Executives at M.I.T's Sloan School of Business. He is                  also past                  Chairman of the Canadian Association of Petroleum Producers and                  past                  Vice-Chairman of the Canadian Association of the World Petroleum                  Congresses. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Board                  and Committee Membership                                                                                                               | Attendance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Board                  of Directors                                                                                                                           | 9                  of 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 100% |
| Audit,                  Finance and Risk Committee                                                                                                            | 7                  of 7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 100% |
| Management                  Resources and Compensation Committee                                                                                              | 4                  of 4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 100% |
| Securities                  Held                                                                                                                              |
| Year                                                                                                                                                          | Common                  Shares2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | DSUs3 | Total                  of CommonShares                  and DSUs | Total                  Market Value ofCommon                  Shares and DSUs4 | Minimum                  Required5 |
| 2006                                                                                                                                                          | 2,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 4,413 | 6,413 | $                  306,221 | $300,000 |
| 2005                                                                                                                                                          | 0                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 2,973 | 2,973 | $                  101,558 |
| Options                  Held: None. Non-employee Directors are not eligible to participate in                  the Company's stock option plan.         |
| Other                  Public Board Directorships: Canadian Utilities                  Limited                                                                |

|  **RON                  A. BRENNEMAN**Non-independent1,                  ManagementAge:                  60Calgary,                  Alberta, CanadaDirector                  since 2000                                                                                           | Ron                  Brenneman joined Petro-Canada as President and Chief Executive                  Officer in                  January 2000. He leads the Company's Executive Leadership Team.                  He is                  responsible for the overall strategic direction of the Company                  and its                  sound management and performance. Mr. Brenneman holds a Bachelor of                  Science and a Master of Science. He is a member of the Board of                  Directors                  of the Canadian Council of Chief Executives. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Board                  and Committee Membership                                                                                                                                                                                                                                         | Attendance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Board                  of DirectorsAs                  a member of management, Mr. Brenneman is not a member of any                  Committee of the Board, but he is invited to attend all Committee                  meetings                  other than *in camera* sessions. | 9                  of 9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 100% |
| Securities                  Held                                                                                                                                                                                                                                                        |
| Year                                                                                                                                                                                                                                                                                    | Common                  Shares2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | DSUs3 | Total                  of CommonShares                  and DSUs | Total                  Market Value ofCommon                  Shares and DSUs4 | Minimum                  Required5 |
| 2006                                                                                                                                                                                                                                                                                    | 81,534                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 217,580 | 299,114 | $                  14,282,693 | $4,860,000 |
| 2005                                                                                                                                                                                                                                                                                    | 78,793                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 190,887 | 269,680 | $                  10,196,393 |
| Options                  Held: 1,219,000                                                                                                                                                                                                                                           |
| Other                  Public Board Directorships:6 Bank of Nova Scotia and BCE                  Inc.                                                                                                                                                                              |

* Sarbanes-Oxley        Act of 2002*

----

| **Name                and****Municipality                of Residence**                       | **Served****as                an Officer Since** | **Principal                Occupation**1                                              | **Employment                History Previous Five years**                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----------------------------------------------------------------------------------------------|--------------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Brian                F. MacNeill, Calgary,                Alberta                             | 2000                                             | Chairman                of the Board of the Company                                   | Prior                to 2001, Mr. MacNeill was President and Chief Executive Officer of                Enbridge Inc.                                                                                                                                                                                                                                                                                                                                |
| **Executive                Leadership Team**                                                  |                                             |                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Ron                A. Brenneman, Calgary,                Alberta                         | 2000                                        | President                and Chief Executive Officer of the Company              | Mr.                Brenneman has held the position of President and Chief Executive                Officer                of the Company since 2000.                                                                                                                                                                                                                                                                                                     |
| Peter                S. Kallos, London,                England                           | 2003                                        | Executive                Vice-President, International                           | Prior                to 2003, Mr. Kallos was the Company's Vice-President, Corporate Planning                and Communications, and prior thereto was External Affairs Director                of                Shell Exploration and Production U.K., and prior thereto was General                Manager of Enterprise's U.K. Business Unit, and prior thereto was                Chief Executive Officer of Enterprise's Italian subsidiary.  |
| Boris                J. Jackman,Mississauga,                Ontario                      | 1993                                        | Executive                Vice-President, Downstream                              | Mr.                Jackman has held the position of Executive Vice-President, Downstream                since 1998.                                                                                                                                                                                                                                                                                                                                      |
| E.F.H.                Roberts, Calgary,                Alberta                           | 1989                                        | Executive                Vice-President and Chief Financial Officer              | Mr.                Roberts has held the position of Executive Vice-President and Chief                Financial Officer since 2004, and prior thereto was Senior Vice-President                and Chief Financial Officer since 2000.                                                                                                                                                                                                                   |
| Neil                J. Camarta,2Calgary,                Alberta                          | 2005                                        | Senior                Vice-President, Oil Sands                                  | Prior                to 2006, Mr. Camarta was the Company's Vice-President, Corporate                Planning                and Communications, and prior thereto was Senior Vice-President,                Oil Sands                for Shell Canada Limited.                                                                                                                                                                                          |
| Kathleen                E. Sendall, Calgary,                Alberta                      | 1996                                        | Senior                Vice-President, North American Natural Gas                 | Ms.                Sendall has held the position of Senior Vice-President, North American                Natural Gas since 2000.                                                                                                                                                                                                                                                                                                                         |
| William                A. Fleming,3St.                John's, Newfoundland and Labrador  | 2005                                        | Vice-President,                East Coast                                        | Prior                to 2005, Mr. Fleming was Terra Nova Asset Manager, and prior thereto                was                Manager of Engineering and Operations, Western Canada.                                                                                                                                                                                                                                                                       |
| **Upstream**                                                                                  |                                             |                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Youssef                Ghoniem, Dorsten,                Germany                          | 2002                                        | Senior                Vice-President, Operations                                 | Prior                to 2002, Mr. Gohniem was Executive Board Member for Veba Oil &                Gas GmbH.                                                                                                                                                                                                                                                                                                                               |
| Gordon                Carrick, London,                England                            | 2002                                        | Senior                Vice-President, Operations and Technology                  | Prior                to 2002, Mr. Carrick was Terra Nova Asset Manager.                                                                                                                                                                                                                                                                                                                                                                                  |
| Nicholas                A. Maden, London,                England                         | 2003                                        | Vice-President,                International and Offshore Exploration            | Prior                to 2003, Mr. Maden was the Company's Exploration Manager, International                business unit, and prior thereto was Business Development Manager                with                Veba Oil & Gas GmbH, and prior thereto held various                exploration management positions with ARCO.                                                                                                            |
| Graham                Lyon, London,                England                               | 2004                                        | Vice-President,                Business Development, International               | Prior                to 2004, Mr. Lyon was the Company's Senior Director, Business Development,                and prior thereto was head of Business Development, Deminex UK                Oil & Gas.                                                                                                                                                                                                                                         |
| Donald                M. Clague, Denver,                Colorado                         | 2002                                        | Vice-President,                U.S. Operations, North American Natural Gas  | Prior                to 2002, Mr. Clague was Manager, Exploration East Coast/Offshore,                and                prior thereto was Chief Geophysicist.                                                                                                                                                                                                                                                                                           |
| Francois                Langlois, Calgary,                Alberta                        | 2002                                        | Vice-President,                Exploration, North American Natural Gas           | Prior                to 2002, Mr. Langlois was Manager, Southern Exploration, and prior                thereto                was General Manager, North Africa, and prior thereto was Team Leader,                Foothills Exploration.                                                                                                                                                                                                                |
| John                D. Miller, Calgary,                Alberta                           | 2004                                        | Vice-President,                Natural Gas Marketing                             | Prior                to 2004, Mr. Miller was General Manager of Gas Marketing, and prior                thereto was Manager of Gas Marketing, and prior thereto was Manager,                Oil                Sands Infrastructure, and prior thereto was Portfolio Manager, Oil                Sands                Business Integration, and prior thereto was Portfolio Manager, Natural                Gas                Marketing.                |

| Leon                Sorenson, Calgary,                Alberta  | 2004  | Vice-President,                Canadian Operations, North American Natural Gas  | Prior                to 2004, Mr. Sorenson was Manager of Production Engineering and                Operations, Western Canada Productions, and prior thereto was Manager                of                Northern Development, Western Canada Development and Operations,                and prior                thereto was Manager of Engineering Technology.  |
|---------------------------------------------------------------------|------------|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| **Name                    and****Municipality                    of Residence**         | **Served****as                    an Officer Since** | **Principal                    Occupation1**                                                                                  | **Employment                    History Previous Five years**                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|-----------------------------------------------------------------------------------------|------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Susan                    M. MacKenzie,Calgary,                    Alberta               | 2006                                            | Vice-President,                    *In Situ* Development and Operations, Oil Sands                                       | Prior                    to 2006, Ms. MacKenzie was the Company's General Manager, Oil                    Sands *In                    Situ*, and prior thereto was Senior Director, Bitumen, and prior                    thereto was Project Manager, Oil Sands Bitumen.                                                                                                                                                                                                                                 |
| Colin                    H. Cook,Calgary,                    Alberta                    | 2006                                            | Vice-President,                    Marketing and Development, Oil Sands                                                  | Prior                    to 2006, Mr. Cook was the Company's General Manager, Marketing                    and                    Integration, Oil Sands, and prior thereto was General Manager,                    Business                    Integration Oil Sands.                                                                                                                                                                                                                                     |
| Hugh                    D. MacGregor,Calgary,                    Alberta                | 2006                                            | Vice-President,                    Fort Hills, Oil Sands                                                                 | Prior                    to 2006, Mr. MacGregor was the Company's Senior Director, Oil                    Sands                    Refinery Conversion Program.                                                                                                                                                                                                                                                                                                                                            |
| **Downstream**                                                                          |                                                 |                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Randall                    B. Koenig, Oakville,                    Ontario         | 1996                                            | Vice-President,                    Lubricants                                                                            | Mr.                    Koenig has held the position of Vice-President, Lubricants since                    1998.                                                                                                                                                                                                                                                                                                                                                                                           |
| Frederick                    Scharf, Mississauga,                    Ontario       | 2003                                            | Vice-President,                    Wholesale/Retail Sales, Service and Operations                                        | Prior                    to 2003, Mr. Scharf was General Manager, Western Canada                    Wholesale/Retail.                                                                                                                                                                                                                                                                                                                                                                                      |
| Philip                    Churton, Burlington,                    Ontario          | 2005                                            | Vice-President,                    Marketing                                                                             | Prior                    to 2005, Mr. Churton was General Manager, Sales Services &                    Operations, Central Canada.                                                                                                                                                                                                                                                                                                                                                                |
| Daniel                    P. Sorochan, Mississauga,                    Ontario     | 2003                                            | Vice-President,                    Refining and Supply                                                                   | Prior                    to 2003, Mr. Sorochan was Senior Director of Business Development,                    Refining and Supply, and prior thereto was General Manager, Oakville                    refinery.                                                                                                                                                                                                                                                                                           |
| **Shared                    Services**                                                  |                                                 |                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Scott                    R. Miller,4Calgary,                    Alberta                 | 2006                                            | Vice-President,                    General Counsel                                                                       | Prior                    to 2006, Mr. Miller was Associate General Counsel, Upstream.                    Mr. Miller is an Associate Member of the Executive Leadership                    Team.                                                                                                                                                                                                                                                                                                       |
| Andrew                    Stephens, Calgary,                    Alberta            | 1993                                            | Vice-President,                    Human Resources                                                                       | Mr.                    Stephens has held the position of Vice-President, Human Resources                    since                    2005, and prior thereto was Vice-President, Corporate Planning                    and                    Communications, and prior thereto was Vice-President, Refining                    and Supply.                    Mr. Stephens is an Associate Member of the Executive Leadership                    Team.                                                    |
| M.                    A. (Greta) Raymond, Calgary,                    Alberta      | 2001                                            | Vice-President,                    Environment, Health, Safety and Security/Corporate                    Responsibility  | Ms.                    Raymond has held the position of Vice-President, Environment,                    Safety and                    Social Responsibility since 2005, and prior thereto was also                    responsible                    for Human Resources. Ms. Raymond is an Associate Member of the                    Executive                    Leadership Team.                                                                                                                       |
| Helen                    Wesley,5 London,                    England          | 2006                                            | Vice-President,                    Finance IBU                                                                           | Prior                    to 2006, Ms. Wesley was the Company's Senior Director, Corporate                    Communications, and prior thereto was Manager Planning, and prior                    to that                    was with Nova Chemicals as Vice-President, Purchasing and                    Supply.                                                                                                                                                                                          |
| Wayne                    R. Pennington,6 Calgary,                    Alberta  | 2006                                            | Treasurer                                                                                                                | Prior                    to 2006, Mr. Pennington was the Company's Assistant Controller,                    Corporate,                    and prior to that was Senior Director, Financial Reporting and                    Accounting,                    and prior thereto was with EnCana Corporation as Assistant Controller,                    and                    prior to that was with PanCanadian Energy as Manager Financial                    Reporting                    and Forecasts.  |
| Hugh                    L. Hooker, Calgary,                    Alberta             | 2004                                            | Chief                    Compliance Officer, Corporate Secretary, Associate General                    Counsel           | In                    2006, Mr. Hooker added Chief Compliance Officer to his responsibilities.                    Prior to 2004, Mr. Hooker was Associate General Counsel.                                                                                                                                                                                                                                                                                                                                 |
| Michael                    Danyluk, Calgary,                    Alberta            | 2004                                            | Chief                    Information Officer                                                                             | Prior                    to 2004, Mr. Danyluk was Senior Director of Information                    Systems.                                                                                                                                                                                                                                                                                                                                                                                               |
| Michael                    C. Barkwell,Calgary,                    Alberta         | 2005                                            | Controller                                                                                                               | Prior                    to 2005, Mr. Barkwell was Assistant Controller, Downstream, and                    prior                    thereto was Director of Financial Reporting.                                                                                                                                                                                                                                                                                                                          |

----

**Share      Ownership**

**Corporate      Governance**

**Governance      Committee Responsibilities**

-  develop            and implement corporate governance procedures 
-  propose              nominees for election to the Board 
-  assess                the size, competencies and skills of the Board 
-  conduct                  Board, Committee and Director evaluations 
-  oversee                    the orientation and education of Board                    members 

**2006      Governance Initiatives**
** **

-  a          gap          analysis on Director education to benchmarch Petro-Canada's Director          orientation and education programs 
-  reviewing          the Board membership matrix in connection with succession          planning 
-  an          assessment of the annual Board review process 
-  revision          of the Corporate Governance Handbook 

**Corporate      Governance Practices**

|  *Canadian*   |  National              Instrument 58-101 (Disclosure of Corporate Governance              Practices)             |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|
|               |  National              Policy 58-201 (Corporate Governance Guidelines)                                           |
|               |  National              Instrument 52-109 (Certification of Disclosure)                                           |
|               |  Multilateral              Instrument 52-110 (Audit Committees) (MI 52-110)                                      |
|               |                                                                                                                  |
|  *U.S. * |  *Sarbanes-Oxley              Act of 2002* (SOX)                                                                 |
|               |  NYSE              Corporate Governance Standards for U.S. domestic issuers (NYSE              Standards)1  |

----

**Board      Composition and Independence**

**Board      Roles and Responsibilities**

-  management            selection, retention, succession and remuneration 
-  overseeing              the development of the Company's business strategy and monitoring its              progress 
-  approving                significant Company policies and procedures 
-  timely                  and accurate reporting to shareholders and public filing of                  documents 
-  approving                    major Company decisions and documents, including such things                    as audited                    financial statements, declaration of dividends, offering circulars                    and                    initiation of bylaw                    amendments 

*in camera*
*in camera*

**Board      Committees**

-  Audit,            Finance and Risk (Audit Committee) 
-  Corporate              Governance and Nominating (Governance Committee) 
-  Environment,                Health and Safety (EH&S Committee) 
-  Management                  Resources and Compensation (Compensation                  Committee) 
-  Pension                    (Pension Committee) 

*in camera*

----

*Audit      Committee*

*In camera*

*Governance      Committee *

*in camera*

*EH&S      Committee*

*in camera*
*in camera*

*Compensation      Committee*

*in camera*
*in      camera*

*Pension      Committee*

*in camera*
*in      camera*

**Position      Descriptions**

*Chair      of the Board*

*President      and Chief Executive Officer*

----

**Director      Evaluation and Compensation**

**Director      Orientation and Continuing Education**

-  business            plan and implementation strategy 
-  annual            disclosure documents 
-  minutes            of the Board and Committee meetings for the past year 
-  Corporate            Governance Handbook 
-  Code            of            Business Conduct 

**Ethical      Business Conduct**

*Code      of Business Conduct *

*Senior      Financial Officers*

*Whistleblower      Hotline*

*Disclosure      Policy*

----

*ex-officio*

**Audit      Committee Disclosure**

**Audit,      Finance and Risk Committee**

*in camera*

***Audit***
**Fees**

**INTEREST      OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS**

----

**TRANSFER      AGENTS AND REGISTRARS**

| In                Canada:**CIBC Mellon                Trust Company**600,                333 - 7 Avenue S.W.Calgary,                Alberta T2P 2Z1Telephone:                1-800-387-0825 or416-643-5000                outside of North AmericaWebsite:                www.cibcmellon.com  | In                the U.S.:**Mellon                Investor Services LLC**Telephone:                1-800-387-0825Website:                www.cibcmellon.com  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**MATERIAL      CONTRACTS**

**INTERESTS      OF EXPERTS**

**ADDITIONAL      INFORMATION**

----

**SCHEDULE      A**

**REPORT      ON RESERVES DATA**

**BY**

**SENIOR      OFFICER RESPONSIBLE FOR RESERVES DATA**

**STANDARDIZED      MEASURE OF FUTURE NET CASH FLOWS**

**PROVED      OIL AND GAS RESERVES AND OIL SANDS MINING**

*(10%      discount rate)*

**As      at December 31, 2006**

| Location                of Reserves (by business) |   | Standardized                Measure(After                Deducting Income Taxes) |   |
|--------------------------------------------------------|--------|----------------------------------------------------------------------------------|--------|
| North                American Natural Gas              |   | $                                                                                | 3,493  |   |
| East                Coast Oil                          |   |                                                                             | 3,233  |   |
| Northwest                Europe                        |   |                                                                             | 2,090  |   |
| North                Africa/Near East                  |   |                                                                             | 590    |   |
| Northern                Latin America                  |   |                                                                             | 148    |   |
| Syncrude                Oil Sands Mining Operation     |   | $                                                                                | 3,539  |   |

----

| /Signed/ Kathleen                E. SendallSenior                Vice-President, North American Natural GasMember                of Executive Leadership Team Responsible for Reserves Dated                March 22, 2007  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

----

**SCHEDULE      B**

**REPORT      OF MANAGEMENT AND DIRECTORS**

**ON      RESERVES DATA AND OTHER INFORMATION**

----

| /Signed/ Ron                A. BrennemanPresident                and Chief Executive Officer                 |   |
|------------------------------------------------------------------------------------------------------------------------|--------|
| /Signed/ Kathleen                E. SendallSenior                Vice-President, North American Natural Gas  |   |
| /Signed/ Paul                D. Melnuk, Director                                                             |   |
| /Signed/ Brian                F. MacNeill, Director Dated                March 22, 2007            |   |

----

**SCHEDULE      C**

**AUDIT,      FINANCE AND RISK COMMITTEE**

**1.**
**The      duties and responsibilities of the Audit, Finance and Risk Committee shall      include the following:**

| (i)          | assist                  the Board of Directors in the discharge of its fiduciary responsibilities                  relating to the Company's accounting policies, reporting practices                  and                  internal controls, as well as to its risk management policies                  and practices;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (ii)         | maintain                  direct lines of communications with the Chief Financial Officer                  and with                  the contract auditor and the external auditors;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (iii)        | monitor                  the scope and costs of the activity of the contract and external                  auditors,                  and assess their performance;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (iv)         | formally                  consider the continuation of or a change in the external auditors                  and                  review all issues related to a change of external auditor, including                  any                  differences between the Company and the auditor that relate to                  the                  auditor's opinion or a qualification thereof or an auditor                  comment;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (v)     | recommend                  to the Board of Directors a firm of external auditors for approval                  by the                  shareholders of the Company; review and approve the terms of their                  engagement; review and approve the fee, scope and timing of the                  audit, and                  be apprised of and approve in advance any audit related services                  and any                  non-audit services (which are not prohibited non-audit services)                  to be                  provided by the external auditors and the costs thereof and consider                  any                  impact of the provision of such services on the maintenance of                  their                  independence and review the Company's hiring policies regarding                  employees                  and former employees of the present and former external                  auditors; |
| (vi)         | review                  all issues related to any proposed change in or renewal of the                  contract                  with the contract auditor;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (vii)        | review                  and recommend approval by the Board of the Company's audited annual                  financial statements and Management's Discussion and                  Analysis;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (viii)  | review                  before publication the Company's unaudited quarterly financial                  statements,                  reports of quarterly earnings, and Management's Discussion and                  Analysis                  with particular attention to the presentation of unusual or sensitive                  matters such as disclosure of related party transactions, significant                  non-recurring events, significant risks, changes in accounting                  principles,                  and estimates or reserves, and all significant variances between                  comparative reporting periods, and approve the publication of the                  Company's unaudited quarterly financial statements and reports                  of                  quarterly earnings;                                                                                                                                       |
| (ix)         | review                  all financial information included in annual information forms,                  prospectuses, other offering memoranda or other documents requiring                  approval by the Board of Directors;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (x)     | review                  the Statement of Management's Responsibility for the Financial                  Statements                  as signed by senior management and included in any published document,                  and                  review and approve the Statement regarding the role of the Committee                  as                  signed by the Chairman of the Committee and included in any published                  documents;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (xi)         | review                  the Report of Management on Oil and Gas Disclosure as signed by                  senior                  management and directors and included in any published                  document;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| (xii)   | review                  any litigation, claim or other contingency, including tax assessments,                  that could have a material effect upon the financial position or                  operating                  results of the Company, monitor disclosure thereof in documents                  reviewed                  by the Committee;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (xiii)  | review                  the appropriateness and quality of the accounting policies used                  in the                  preparation of the Company's financial statements, and consider                  any                  proposed changes to such policies;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (xiv)   | review                  with the external auditor the contents of the annual audit report                  and                  review any significant recommendations from the external auditor                  to                  strengthen the internal controls of the Company;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| (xv)    | review                  the results of the external audit, any significant problems encountered                  in                  performing the audit, and the contents of any Management Letter                  issued by                  the external auditor to the Company, and management's response                  thereto;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

----

| (xvi)         | annually                  review a report on the contract audit function with respect to                  the terms                  of reference, organization, staffing, independence, performance                  and                  effectiveness of the contract audit services, receive and approve                  the                  annual contract audit plan, and obtain assurances in respect of                  conformity                  with CICA and AICPA professional standards, and other regulatory                  bodies'                  requirements, the outsourcing contract and recommendations of management                  and the contract auditor;                                                                     |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (xvii)             | review                  significant contract audit findings and recommendations, and management's                  response thereto;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (xviii)       | oversee                  management's responsibility for designing, installing and maintaining                  an                  effective control environment; approve in advance any internal                  control-related services performed by the external auditor; and                  receive                  regular reports on the Company's internal control policies and                  procedures                  with particular emphasis on accounting and financial controls,                  and                  recommend changes where appropriate;                                                                                                                                                                                |
| (xix)         | review                  any unresolved significant issues between management and the external                  auditor that could affect the financial reporting or internal controls                  of                  the Company;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (xx)          | annually;                  (a) review the Company's internal procedures for providing reserves                  information to its reserves evaluators; (b) meet with internal and                  external reserves evaluators to determine their independence and                  effectiveness in preparing the reserves data of the Company;                  (c) review the reserves data included in the annual disclosure made                  by the Company; and (d) review the Company's internal procedures for                  assembling and reporting other information associated with oil                  and gas                  activities and included in the annual disclosure made by the                  Company; |
| (xxi)         | receive                  reports on and review any other items deriving from the foregoing,                  either                  in respect of the Company, or a subsidiary or any other entity                  or                  relationship in which the Company has a significant interest, as                  requested                  by the Board;                                                                                                                                                                                                                                                                                                                                                                                                |
| (xxii)             | review                  and make recommendations to the Board concerning the                  following:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|     |     1)                   the Company's policies regarding hedging, investments, credit and                  risk management; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|          |     2)                   the Company's risk identification, analysis and management                  procedures;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (xxiii)       | review,                  prior to each annual shareholders' meeting, the policies and practices                  concerning the regular examination of officers expenses and perquisites,                  including the use of Company assets;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (xxiv)        | report                  annually to the full Board, on the state of completion of the Audit,                  Finance and Risk Committee Annual Agenda Items, with appropriate                  recommendations; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (xxv)         | report                  annually to the full Board on the Committee's review of the Company's                  reserves procedures and disclosure and recommend to the Board the                  approval                  of the reserves data and other information associated with the                  Company's                  oil and gas activities and included in the annual disclosure made                  by the                  Company.                                                                                                                                                                                                                                                                                                         |

**2.**
**ORGANIZATION      AND PROCEDURES**

| (i)    | The                  Committee shall meet regularly, not less than four times per year,                  and at                  such other times as may be requested by the Chair of the Committee.                  The                  Chief Executive Officer, the Chief Financial Officer, the Controller,                  the                  contract auditor, the external auditor or any member of the Committee                  may                  also request a meeting of the Committee. |
|-------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (ii)   | The                  Chair of the Committee, in consultation with the Chief Financial                  Officer,                  shall set the agenda for each meeting which shall then be circulated                  among                  the Committee Members.                                                                                                                                                                                                                                        |
| (iii)  | The                  Chief Executive Officer, the Chief Financial Officer and the Controller                  shall have direct access to the Committee and shall receive notice                  of and                  attend all meetings of the Committee, except private                  sessions.                                                                                                                                                                                                   |
| (iv)   | The                  external auditor and the contract auditor shall ultimately report                  to the                  Board and the Committee and shall at any time have direct access                  to the                  Committee and shall receive notice of and be invited to attend                  all                  meetings of the Committee, except private sessions.                                                                                                          |
| (v)    | The                  contract auditor, the external auditor, and one or more representatives                  of                  senior management, shall each meet separately with the Committee,                  in                  private sessions, at least once annually.                                                                                                                                                                                                                          |
| (vi)        | The                  Committee may contact directly any employee in the Company and                  the                  contract auditor as it deems                  necessary.                                                                                                                                                                                                                                                                                                                          |

----

| (vii)  | The                  Committee will establish procedures for:                                                                                                                                                                                                                                                    |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 1) receipt,                  retention and treatment of complaints regarding accounting controls                  or                  auditing matters; and                                                                                                                                            |
|   | 2) confidential                  anonymous submission by employees of concerns regarding questionable                  accounting or auditing matters; and annual review of compliance                  under the                  Company's Code of Ethics for Senior Financial                  Officers. |

----

**CONTROLS        AND PROCEDURES**

**MANAGEMENT’S          REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING**

**[See          page 1 of the Management's Discussion and Analysis Exhibit forming part of          this report]**

**ATTESTATION          REPORT OF THE REGISTERED PUBLIC ACCOUNTING FIRM**

**[See          pages 3 and 4 of the Management's Discussion and Analysis Exhibit forming          part          of this report]**

**CHANGES          IN INTERNAL CONTROL OVER FINANCIAL REPORTING**

**IDENTIFICATION          OF THE AUDIT COMMITTEE**

|   | Chair:   | P.                  D. Melnuk    |
|--------|----------|----------------------------------|
|   | Members: | A.                  A. Bruneau   |
|   |     | G.                  Cook-Bennett |
|   |     | P.                  Haseldonckx  |
|   |     | J.                  W. Simpson   |

**AUDIT        COMMITTEE FINANCIAL EXPERT**

**CODE        OF ETHICS**

**PRINCIPAL        ACCOUNTANT FEES AND SERVICES**

**audit          fees**

**audit          related fees**

**tax          fees **

**all          other fees -**

**audit          fees**

**audit          related fees**

**tax          fees **

**all          other fees **

**OFF-BALANCE        SHEET ARRANGEMENTS**

**See        page 17 of the Management's Discussion and Analysis Exhibit forming part        of this        report**

**CONTRACTUAL          OBLIGATIONS**

**See          page17 of the Management's Discussion and Analysis Exhibit forming part of          this report**

**UNDERTAKING        AND CONSENT TO SERVICE OF PROCESS**

**A.**
**Undertaking**

|   | Petro-Canada                  (the “Registrant”) undertakes to make available, in person or by                  telephone, representatives to respond to inquiries made by the                  staff of                  the Securities and Exchange Commission (“SEC”), and to furnish promptly,                  when requested to do so by the SEC staff, information relating                  to the                  securities in relation to which the obligation to file an annual                  report on                  Form 40-F arises or transactions in said                  securities. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**B.**
**Consent        to Service of Process**

**SIGNATURE**

|                                  | **PETRO-CANADA**                                                                                                            |
|---------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|
|                                  |                                                                                                                        |
| Date:                  March 29, 2007 | /s/                  Hugh L. Hooker                                                                                         |
| Name:                                 | Hugh                  L. Hooker                                                                                             |
| Title:                                | Chief                  Compliance Officer, Corporate                  Secretary, Associate General                  Counsel |

**EXHIBITS**

**Exhibits**
**Description**

| 99.5 |   Certification                  of CEO                  pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section                  906 of                  the Sarbanes-Oxley Act of 2002 |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 99.6 |   Certification                  of                  CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to                  Section 906                  of the Sarbanes-Oxley Act of 2002 |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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