Page 40 - AIF - English

STATEMENT OF RESERVES DATA AND OTHER OIL AND GAS INFORMATION

previously been on production, and the date of (and vice versa), since the production barrels necessary to

resumption of production must be known with achieve cost recovery change with the prevailing
reasonable certainty.
commodity prices.

(b) Developed non-producing reserves are those reserves
Levels of Certainty for Reported Reserves
that either have not been on production, or have
previously been on production but are shut in, and the The qualitative certainty levels referred to in the definitions
above are applicable to individual reserves entities (which
date of resumption of production is unknown.
refers to the lowest level at which reserves calculations are
Undeveloped reserves are those reserves expected to be performed) and to reported reserves (which refers to the
recovered from known accumulations where a significant
highest level sum of individual entity estimates for which
expenditure (for example, when compared to the cost of reserves are presented). Reported reserves should target the
drilling a well) is required to render them capable of following levels of certainty under a specific set of

production. They must fully meet the requirements of the economic conditions:
reserves category (proved or probable) to which they
(a) at least a 90% probability that the quantities actually
are assigned.
recovered will equal or exceed the estimated proved

In multi-well pools, it may be appropriate to allocate total reserves; and
pool reserves between the developed and undeveloped
(b) at least a 50% probability that the quantities actually
categories or to subdivide the developed reserves for the recovered will equal or exceed the sum of the
pool between developed producing and developed
non-producing. This allocation should be based on the estimated proved plus probable reserves.

evaluator’s assessment as to the reserves that will be A quantitative measure of the certainty levels pertaining to
recovered from specific wells, facilities and completion estimates prepared for the various reserves categories

intervals in the pool and their respective development and provides a clearer understanding of the associated risks and
production status.
uncertainties. However, the majority of reserves estimates

In the economic interest method used for PSCs, Suncor’s are prepared using deterministic methods that do not
provide a mathematically derived quantitative measure of
share of profit revenue plus cost recovery revenue is divided
by the associated oil or gas price forecast to determine probability. In principle, there should be no difference
between estimates prepared using probabilistic or
Suncor’s net volume entitlement, or entitlement reserves.
The entitlement reserves are then adjusted to include deterministic methods. Additional clarification of certainty
levels associated with reserves estimates and the effect of
reserves relating to income taxes payable by the national oil
company on behalf of Suncor. Under this method, reported aggregation is provided in the COGE Handbook.

reserves will increase as commodity prices decrease

38 SUNCOR ENERGY INC. ANNUAL INFORMATION FORM 2014