Page 59 - AIF - English

Generally, the timing for the economic assessments of In Situ Contingent Resources

contingent resources will be determined by Suncor’s In Situ contingent resources comprise approximately 58%
long-term resource development plan and its forecast for of Suncor’s total contingent resources, with approximately

economic conditions. Management uses integrated plans to 85% of these contingent resources related to properties in
forecast future development of resources. These plans align which Suncor has a 100% working interest and the

current and planned production, current and forecasted remainder forming part of joint arrangements where
market conditions, processing and pipeline capacities, Suncor has working interests varying from 10% to 75%.

capital spending commitments and related future These contingent resources are all in the Athabasca oil
development plans. These plans are reviewed and updated sands area. All In Situ contingent resources are associated

annually for internal and external factors affecting these with clastic or sandstone formations in the Fort McMurray
planned activities. In particular, as Suncor’s Oil Sands oil sands area, and approximately 85% of the contingent

reserves base depletes, the company anticipates that it will resources are in, or adjacent to, existing Firebag or MacKay
look to develop its other Mining and In Situ properties, at River operations.

which time the assessment of the economic viability of The primary risk associated with developing In Situ
specific properties with contingent resources will be made.
contingent resources relates to actual reservoir performance
Details of Suncor’s contingent resources and a versus performance estimated based on geological data.
categorization of the contingencies ascribed to these The geological data varies substantially as a result of the

resources are provided below.
density of core holes used in the analyses. The density can
be as low as one well per section, and as high as 16 wells

Mining Contingent Resources
per section.
Mining contingent resources comprise approximately 23%
Suncor also owns mineral rights in 288 sections of the
of Suncor’s total contingent resources, with 74% of these Grosmont carbonate formation, all at a 100% working
contingent resources related to properties in which Suncor
interest. Core hole drilling completed on these sections has
has a 100% working interest and the remainder forming identified bitumen in the Grosmont, Upper Ireton and
part of joint arrangements where Suncor has working
Nisku carbonate formations. In addition, Suncor has
interests varying from 12% to 40.8%.
acquired data from numerous third-party pilots currently in

operation in Grosmont carbonates. However, Suncor has
Economic Contingencies
not recognized any contingent resources in carbonate
The economic status of Suncor’s Mining contingent
formations, as the viability of potential recovery processes
resources is currently undetermined and is dependent on in Suncor’s carbonate interests has not yet been
the company’s long-term resource development plan and
established.
its forecast for economic conditions. Prior to reserves being
assigned, these contingent resources require the
Economic Contingencies
completion of further resource studies and delineation The economic status of In Situ contingent resources is
drilling, and the preparation of development plans and
currently undetermined; however, the company anticipates
facility designs.
that the contingent resources will be economic to develop

under current market conditions. Technical net pay cutoffs
Non-Technical Contingencies
are consistent with, and based upon, the same economic
The reclassification of Mining contingent resources to
conditions as those used in the determination of proved
reserves is largely contingent upon an assessment that plus probable reserves for Firebag and MacKay River, or are
development will be sanctioned and commence within a
analogous to existing in situ operations successfully
reasonable time frame. The Joslyn North mining project has developed by other entities in the oil sands industry. Suncor
substantially all regulatory approvals in place. However, the
anticipates that its In Situ contingent resources will be
project has recently applied for regulatory approval of an recoverable using established SAGD processes.
amended project development plan. As a result, it
Contingent resources have been assigned to certain
is Suncor’s view that the development of these contingent
resources in the near term is not sufficiently assured to sections associated with Firebag and MacKay River. These
volumes have not been classified as reserves in part
support reclassification to reserves.
because drilling density is inadequate for reliable mapping
Suncor’s remaining Mining contingent resources are of effective pay intervals. However, the company has
primarily contingent upon regulatory permits which must
two-dimensional and three-dimensional seismic control,
be obtained before project sanction decisions by Suncor’s minimum mapped effective pay thicknesses of 15 metres
Board of Directors and/or co-owners, as applicable, are
for Firebag and 14 metres for MacKay River, and drilling
considered.
density greater than or equal to one vertical well per

SUNCOR ENERGY INC. ANNUAL INFORMATION FORM 2014 57