Page 48 - AIF - English

STATEMENT OF RESERVES DATA AND OTHER OIL AND GAS INFORMATION

will allocate funding to develop all of the reserves and pipelines pertaining to its upstream assets to be

attributed in the GLJ Reports and the Sproule Reports. approximately $7.8 billion (discounted at 10%,
Failure to develop those reserves would have a negative approximately $2.1 billion). Suncor estimates that it will

impact on future cash flow from operating activities.
incur $1.1 billion of its identified abandonment and
reclamation costs during the next three years
The interest or other costs of external funding are not
included in the reserves and future net revenue estimates (undiscounted: 2014 – $0.4 billion, 2015 – $0.4 billion,
2016 – $0.4 billion), over 77% of which is associated with
and would reduce reserves and future net revenue to some
degree depending upon the funding sources utilized. Oil Sands mining operations. This cost estimate does not
include the company’s estimated abandonment and
Suncor does not anticipate that interest or other funding
costs would make development of any property reclamation costs for its Refining and Marketing assets
($0.2 billion, undiscounted and uninflated).
uneconomic.
Approximately $2.5 billion (undiscounted) has been
Abandonment and Reclamation Costs
deducted as abandonment costs in estimating the future
The company completes an annual review of its net revenues from proved plus probable reserves. This
abandonment and reclamation costs as they relate to its
$2.5 billion represents the abandonment obligation for
overall operations. This review considers the nature of approximately 2,200 net production wells and
Suncor’s forecasted production and development plans, approximately 2,000 net service and other wells, including

consistent with that assumed in our long-range planning, a forecasted number of future wells for undeveloped
where determinable, for liabilities associated with its reserves related to in situ and conventional activities that

upstream operations as at December 31, 2013. Where no are not included in Suncor’s $7.8 billion total.
legal liability or constructive obligation for reclamation
Abandonment and reclamation costs included in Suncor’s
exists, potential costs have been excluded from the $7.8 billion total that are excluded from the determination
company’s abandonment and reclamation cost estimates.
of future net revenues from reserves include, but are not
Estimates are based on the anticipated method and extent limited to, costs related to the reclamation of disturbed
of restoration, consistent with legal requirements,
land from oil sands mining activities, the treatment of oil
technological advances and the possible future use of
sands tailings, the decommissioning of oil sands and
the site.
natural gas processing facilities and well pads, lease sites
At December 31, 2013, Suncor estimated its undiscounted, and the abandonment of wells for which no reserves have

uninflated abandonment and reclamation costs, net of been assigned.
estimated salvage value, for surface leases, wells, facilities

46 SUNCOR ENERGY INC. ANNUAL INFORMATION FORM 2014