Attention Business Editors:

OPTI Canada announces an $817 million 2005 Capital Program and investments for future phases of growth

    TSX: OPC

    CALGARY, Dec. 9 /CNW/ - OPTI Canada Inc. ("OPTI") announced that its
Board of Directors has approved an $817 million capital budget for 2005.
Expenditures of $765 million are for the Company's share of budgeted project
costs on the Long Lake integrated oil sands Project ("Project"). The balance
of the capital budget of $52 million will be directed towards evaluation of
other oil sands leases for future phases of growth, other Project related
activities, and capitalized finance and administrative costs.
    "The capital program is consistent with our Project plan that was
approved in early 2004," says Sid Dykstra, President & CEO of OPTI, "2005 and
2006 are the major construction years for the Long Lake Project where all of
our up-front planning gets put into action. In addition, we are also starting
to make significant investments for future phases of growth."
    Excellent progress continues to be made on the Long Lake Project with
over 2,000 people currently working on the engineering, planning and initial
construction activities on the Project. By the end of October, about 50% of
the detailed engineering had been completed, on track with the plan to be over
80% completed by the first quarter of 2005. Over 95% of the major equipment
for the project has now been procured with estimated costs on track with the
Project budget. The majority of bulk materials and services are now being
ordered with initial indications that these items will also be within the
budget estimates. Fabrication of the first equipment modules started in
November.
    On the Project site, earthwork and the installation of deep underground
pipes and facilities has been completed on time and on budget. During 2004,
over 4 million cubic meters of earth and gravel were moved to prepare the site
for construction. The fabrication of major storage tanks, installation of
piles and construction of the plant administration building have also
commenced on schedule. Delivery of the first module to the site is planned for
the second quarter of 2005. Detailed construction planning is continuing, with
a planned peak on site labor force of 2,000 workers in 2006. It is expected
that there will continue to be pressure on labor costs and availability of
skilled labor which will be monitored closely as field construction ramps up
in 2005.
    Drilling of the commercial steam assisted gravity drainage (SAGD) well
pairs is underway with three drilling rigs in operation. By the end of
November, 18 horizontal wells were drilled. Drilling operations are proceeding
ahead of schedule and below budget with reservoir results on track with
expectations. Based on these initial results it is expected the drilling of
the 130 horizontal wells (65 well pairs) will now be completed prior to the
end of 2005 compared to the first quarter of 2006.
    The performance of the SAGD pilot has improved over the past month.
Operating the pilot at a lower pressure has reduced fluid losses to the
reservoir and also reduced the flowing pressures at the wellhead. As a result
of the lower wellhead pressure, one of the pilot wells was shut in to measure
how the other two pilot wells produce against a minimum back pressure. The two
wells are producing with steam oil ratios in the 3.5:1 range and at oil rates
of approximately 600 barrels per well per day. Steam oil ratios and bitumen
production rates are expected to continue to improve as the steam chambers
grow in the reservoir.
    In order to ensure that sufficient bitumen deliverability is available at
the commencement of upgrader operations the Project operators plan to
accelerate the drilling of an additional well pad. This pad, which originally
would have been drilled in about 5 years, will consist of 13 additional
horizontal well pairs which will be drilled at the end of the current 65 well
pair program. As the current drilling program is proceeding ahead of schedule,
these wells will be ready for steam injection in mid 2007. Initial well
performance will be monitored to determine if all the wells will be required
to supply the forecasted bitumen volumes. The facilities are designed to
supply 72,000 barrels of bitumen per day at an average steam oil ratio of 2.5.
Capital costs for the wells, tie-ins and facilities to operate some wells at a
lower pressure is estimated at $98 million or $49 million net to OPTI, over
the 2005 to 2007 period. The capital cost estimate for Long Lake Project,
including the accelerated drilling of the additional well pad, is $3.5 billion
or $1.75 billion net to OPTI. To the end of October 2004, approximately 15% of
these costs have been incurred and over 30% of these costs have been
committed. Current trends indicate that projected final costs for the Project
are in line with our estimates.
    In 2005, additional activity is planned on other oil sands lands to
develop the resource base for future phases of growth. At the south end of the
Long Lake lease, in a project called Kinosis, 42 core holes and 51 square
kilometers of 3D seismic are planned for this winter. In the Jackfish
(Leismer) area, 40 miles to the south of Long Lake, OPTI has a 50% working
interest in over 50 square miles of land. This winter, 40 core holes will be
drilled to further define the resource base and develop plans for a commercial
SAGD development. OPTI's planned expenditures for future growth in 2005 totals
$28.5 million. The key to future developments is to integrate SAGD operations
with the OrCrude(TM) upgrader process. Regulatory approval for a second  
70,000 barrel per day phase of upgrading is already in place at Long Lake.
Regulatory approval will be required for additional SAGD operations.
    In 2004, OPTI put in place $1.0 billion of equity and $0.8 billion of
debt to fund phase 1 of the Long Lake Project and other oil sands activities.
OPTI plans to fund the 2005 capital program with available working capital,
borrowings from the $0.8 billion credit facility and other sources, if
required.
    OPTI will be holding a conference call at 6:30 a.m. Mountain Time     
(8:30 a.m. Eastern Time) Friday morning, December 10, 2004 to review the
Company's 2005 Capital Program and to provide an update on the progress of the
Long Lake Project. Sid Dykstra, President and CEO, and George Crookshank,
Chief Financial Officer, will be present on this call. To listen to the
conference call, please call one of these lines:

                    (403) 537-9607    (Calgary or Alternate International)
                    (800) 387-6216    (North American Toll-Free)
                    (800) 7664-7664   (International Toll-Free)

    Please reference the OPTI Canada conference call with Sid Dykstra, when
speaking with the Operator.
    A replay of the call will be available until January 15, 2005 inclusive
by calling (416) 695-5800 and entering passcode 3126739, followed by the pound
(No.) sign.

    OPTI is a public Canadian company with its shares listed for trading on
The Toronto Stock Exchange (Symbol OPC). The $3.5 billion Long Lake Project,
the fourth and next major integrated oil sands project in Canada, is a 50/50
joint venture between OPTI and Nexen Inc. The first phase consists of    
72,000 barrels per day (b/d) of SAGD (steam assisted gravity drainage) oil
production integrated with an upgrading facility, using OPTI's proprietary
OrCrude(TM) process and commercially available hydrocracking and gasification.
Through gasification, this configuration essentially eliminates the exposure
to and the need to purchase natural gas. The Project is expected to produce
58,500 b/d of products, primarily 39 degrees API premium sweet crude, with low
sulphur content, making it a highly desirable refinery feedstock. First steam
injection is scheduled to commence in late 2006 and the upgrader is scheduled
to start up in the third quarter of 2007.
    Company information, including the Company's December investor
presentation, is available at http://www.opticanada.com/ and additional
Project information is available at http://www.longlake.ca.

    Certain information contained herein is deemed to be forward-looking. The
Company believes that the expectations conveyed by the forward-looking
statements are reasonable based on information available to it on the date
such forward-looking statements are made. No assurances can be given as to
future results, levels of activity and achievements. Actual results may differ
materially from those anticipated or implied in the forward-looking
statements. All subsequent forward-looking statements, whether written or
oral, attributable to the Company or persons acting on its behalf are
expressly qualified in their entirety by these cautionary statements. The
Company assumes no obligation to update forward-looking statements should
circumstances or management's estimates or opinions change.

For further information: contact: Sid Dykstra, President & CEO,     
(403) 218-4708; George Crookshank, CFO, (403) 218-4710; OPTI Canada Inc.,  
Suite 2100, 555 - 4th Avenue SW, Calgary, Alberta, Canada T2P 3E7