Page 45 - AIF - English

Notes to Future Net Revenues Tables

In Situ Future Net Revenues
per GLJ’s price forecast dated January 1, 2014, as set out
Future net revenues for In Situ properties reflect the below. To the extent that there are fixed or presently

flexibility of Suncor’s operations which allows production determinable future prices or costs to which Suncor is
from these properties to be either upgraded to SCO or sold legally bound by contractual or other obligations to supply

as non-upgraded bitumen. The proportion of upgraded a physical product, including those for an extension period
production is based on estimated available upgrading of a contract that is likely to be extended, those prices or

capacity and can vary depending on unplanned costs have been incorporated into the forecast prices as
maintenance, fluctuations in production from mining and applied to the pertinent properties. The forecast cost and

extraction operations, or changes in the company’s overall price assumptions include increases in wellhead selling
Oil Sands development strategy, including with respect to prices, take into account inflation with respect to future

planned upgrading capacity.
operating and capital costs, and assume the continuance of
current laws and regulations. Price adjustments relating to
Future net revenues disclosed above include the estimated
uplift to the future sales price and the associated upgrader factors such as product quality and transportation were
applied on an individual property basis in cash flow
operating and sustaining capital costs of upgrading
approximately 35% of Firebag bitumen production to SCO, calculations.

from 2014 to 2022, approximately 40% to 2033, and Forecast prices included a US$/Cdn$ exchange rate of
escalating thereafter. These factors translate to a
0.95, a Cdn$/c exchange rate of 1.42 in 2014 and

$2.1 billion increase in future net revenues (total proved 1.40 thereafter, and a Cdn$/£ exchange rate of 1.67 in
plus probable reserves, before tax, discounted at 10%) 2014 and 1.65 thereafter. Forecast costs included a 2%

from In Situ production relative to the scenario where none inflation factor, except for costs for Mining, which included
of the bitumen is upgraded.
4% inflation for 2015 to 2016, 3% inflation for 2017 and

Revenues associated with excess power generated from our 2% thereafter.

cogeneration facilities are included to the extent that all or
a portion of a cogeneration unit is necessary for the Constant Prices and Costs
For purposes of comparison to those issuers who are
operation of the In Situ property. All other revenue related
to excess power generation is excluded from the evaluation required to report reserves estimates using constant prices
and costs in accordance with the rules and regulations of
for In Situ properties, as it does not represent revenues
directly generated from oil and gas activities.
the U.S. Securities and Exchange Commission (SEC), Suncor
also presents reserves estimates using constant prices and

Prices Realized
costs. Benchmark prices used for the purpose of disclosing
supplementary reserves estimates under constant pricing
For prices realized by Suncor during 2013, please see the
Production History section contained within this Statement assumptions are also set out in the table below. Prices are
based on the arithmetic average of the
of Reserves Data and Other Oil and Gas Information.
first-day-of-the-month price for the product for each
month of 2013.
Forecast Prices and Costs
Crude oil, natural gas and other important benchmark Constant prices included a US$/Cdn$ exchange rate of
0.97, a Cdn$/exchange rate of 1.36 and a Cdn$/£
reference pricing, as well as inflation and exchange rates c
utilized in the GLJ Reports and the Sproule Reports, are as
exchange rate of 1.61.

SUNCOR ENERGY INC. ANNUAL INFORMATION FORM 2014 43