Page 57 - AIF - English

Work Commitments
shows the estimated values of work commitments Suncor

The practice of governments requiring companies to pledge has made in regard to the lands it holds as at
to carry out work commitments in exchange for the right December 31, 2013. These commitments run through

to carry out exploration for and development of 2015 and are primarily for conducting seismic programs
hydrocarbons is common, particularly in unexplored or and drilling exploration wells.

lightly explored regions of the world. The following table

Country/Area
($ millions)
2014 Total

Canada
18 24
.......................................................................................................................................................................................................................................................
North Sea 66 176
.......................................................................................................................................................................................................................................................
Other International
67 371

Forward Contracts and Transportation Obligations
of In Situ contingent resources) prepared by Suncor’s
Suncor may use financial derivatives to manage its internal qualified reserves evaluators. Sproule

exposure to fluctuations in commodity prices; however, Unconventional Limited conducted an independent
Suncor did not consider any financial derivative transactions assessment of Suncor’s Best Estimate contingent resources

to be material in 2013. A description of Suncor’s use of contained in the Montney shale formation of northeast
such instruments is provided in the 2013 audited B.C., with an effective date of June 30, 2013. Best

Consolidated Financial Statements and related MD&A for Estimate contingent resources for remaining conventional
the year ended December 31, 2013.
properties were prepared by Suncor’s internal qualified

reserves evaluators without independent audit or review.
Tax Horizon
All contingent resources estimates were conducted in

In 2013, Suncor was subject to cash tax in the majority of accordance with the COGE Handbook. The effective date
the local jurisdictions in which it generates earnings, of Suncor’s best estimate of contingent resources is as of
December 31, 2013, except in the case of the contingent
including earnings related to its Canadian, North Sea and
Other International production. Commencing in 2013, the resources contained in the Montney shale formation of
northeast B.C., which is as at June 30, 2013, and in the
company was cash taxable in Canada on the majority of its
Canadian earnings.
case of Syria, which is as at December 31, 2011.

In 2011, the company’s assets in Syria were impacted by
Contingent Resources
political unrest and international sanctions. As a result,

Contingent resources are those quantities of petroleum volumes previously reported as reserves based on an
estimated, as of a given date, to be potentially recoverable evaluation conducted by Sproule with an effective date of
from known accumulations using established technology or
December 31, 2011 were reclassified to contingent
technology under development, but which are not currently resources in 2012. As the situation in Syria has persisted
considered to be recoverable due to one or more
throughout 2013, the company has not been able to
contingencies. Contingencies may include factors such as update any information used by Sproule since the 2011
economic, legal, environmental, political and regulatory
evaluation. The contingent resources estimate for Syria
matters, or lack of infrastructure or markets. The assumes that there has been no production subsequent to
contingent resource estimates provided herein are best
Sproule’s 2011 evaluation and that infrastructure, including
estimates of the quantities that are potentially recoverable. wells and pipelines, existing at December 31, 2011, exist at
It is equally likely that the actual remaining quantities
December 31, 2013. Therefore, these contingent resources
recovered will be greater or less than the best estimate. are subject to uncertainty arising from any new information
The best estimate of potentially recoverable volumes is
or change in circumstances, such as production, changes in
generally prepared independent of the risks associated with asset performance or development activities, about which
achieving commercial production.
Suncor and Sproule are unaware.
GLJ conducted independent assessments of Best Estimate
There is no certainty that all or any portion of the
contingent resources volumes for all of Suncor’s Mining contingent resources will be commercially viable to
properties and its Firebag, Meadow Creek and Steepbank
produce, or as to the timing of any such development. The
In Situ properties. For remaining In Situ properties, economic viability of the contingent resources is dependent
including MacKay River, GLJ audited assessments of Best
upon pricing and economic conditions. Estimates of
Estimate contingent resources volumes (approximately 45%
contingent resources have not been adjusted for risk based

SUNCOR ENERGY INC. ANNUAL INFORMATION FORM 2014 55