AEC subsidiary to sell Alberta Oil Sands Pipeline.

CALGARY, AB, Nov. 1 /PRNewswire/

- AEC's subsidiary AEC Pipelines, L.P. has reached an agreement to sell its shares in Alberta Oil Sands Pipeline Ltd. (AOSPL) to Pembina Pipeline Corporation for $225 million. AEC carried a net book value of approximately $150 million for AOSPL. The transaction is subject to customary closing conditions and regulatory approval. It is expected to close by December 31, 2001.

AOSPL is the exclusive transporter of synthetic oil production from Syncrude Canada Ltd.'s plant, near Fort McMurray, Alberta, to Edmonton. The 430-kilometre pipeline currently transports about 220,000 barrels of oil per day under a long-term transportation agreement with the Syncrude participants. AEC has a 13.75 percent interest in Syncrude. Transportation charges on Syncrude production will not be impacted by the sale.

"The agreed to sale of AOSPL follows the recent sale of our Jonah Gas Gathering System in Wyoming. The realization by AEC from these transactions will total close to $800 million and underscores the value of AEC's midstream assets. These sales will have only a modest impact on the future income from AEC's remaining core midstream assets," said Hector McFadyen, President of AEC Midstream. As of Sept. 30, 2001, AEC's midstream assets had a book value of $2.9 billion and are forecast to generate $300 million in operating cash flow in 2001.

The AOSPL sale further strengthens AEC's financial position. On a pro forma basis at September 30, 2001, AEC's upstream debt to capitalization is 34 percent and upstream debt to cash flow, on a trailing 12-month basis, is 1.1 times. AEC's midstream debt to capitalization remains unchanged at 60 percent. In addition, AEC has cash and unused bank lines of $2.7 billion.

AEC (Alberta Energy Company Ltd.) is focused on Growth, Value and Performance as it builds a Super-Independent oil and gas company. This strategy capitalizes on the world-class assets and high-quality, long-life reserves that AEC has established in its three strong growth platforms - Western Canada, the U.S. Rockies and Ecuador. Last year, the Company set a target to double production from existing assets within five years.

As one of North America's largest independent oil and gas producers, AEC's daily production is expected to exceed 370,000 barrels of oil equivalent in 2001. The Company is also looking to establish additional growth platforms through new ventures exploration in Alaska, the Mackenzie Delta, the Gulf of Mexico, Australia, West Africa and Azerbaijan. Midstream natural gas storage and oil pipelines assets comprise approximately 20 percent of the Company's asset base and provide a stable source of cash flow. Currently, AEC's enterprise value is about $14 billion.

AEC's Common Shares trade on The Toronto Stock Exchange (AEC) and on the New York Stock Exchange (AOG). AEC web site: www.aec.ca.

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ADVISORY - Certain information regarding the Company set forth in this

document, including management's assessment of the Company's future plans

and operations, may constitute forward-looking statements under

applicable securities law and necessarily involve risks associated with

oil and gas exploration, production, marketing, and transportation such

as loss of market, volatility of prices, currency fluctuations,

imprecision of reserves estimates, environmental risks, competition from

other producers and ability to access sufficient capital from internal

and external sources. As a consequence, actual results may differ

materially from those anticipated in the forward-looking statements.

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