Strathcona Resources Ltd. Reports Year End 2023 Reserves
CALGARY, AB, March 11, 2024 /PRNewswire/ - Strathcona Resources Ltd. ("Strathcona") (TSX: SCR) today reported its year end 2023 reserves.
Strathcona has posted a shareholder letter on its website which provides additional detail on its 2023 reserves.The tables below summarize Strathcona's year end 2023 reserves which were prepared by McDaniel & Associates Consultants Ltd. ("McDaniel") and Sproule Associates Limited ("Sproule"). A complete filing of our oil and gas reserves and other oil and gas information presented in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities will be included in Strathcona's Annual Information Form for the year ended December 31, 2023, to be released in late March 2024.
In addition, a letter to shareholders regarding its year end 2023 reserves has been posted on Strathcona's website at https://www.strathconaresources.com/investors/#reports. Shareholders are encouraged to read the letter, which provides additional detail on Strathcona's 2023 reserves, including a summary of growth and value creation since 2017.
Summary of Oil and Gas Reserves (Forecast Prices and Costs) as of December 31, 2023
Reserves Category Light & Heavy Bitumen Conventional Natural
Gas
Medium Crude Oil Crude Oil (Associated &
Non-Associated
Gas)
Gross Net Gross Net Gross Net Gross Net
(mbbl) (mbbl) (mbbl) (mbbl) (mbbl) (mbbl) (mmcf) (mmcf)
Proved
Developed Producing 925 719 92,897 80,576 119,623 83,009 452,900 409,622
Developed Non- 1 1 826 765 5,257 4,780
Producing
Undeveloped 775 579 356,261 315,189 553,434 362,239 884,378 787,418
Total Proved(2) 1,701 1,300 449,983 396,529 673,057 445,248 1,342,535 1,201,820
Total Probable 3,359 2,409 168,324 143,544 680,169 430,653 1,073,714 921,859
Total Proved Plus 5,059 3,709 618,307 540,073 1,353,226 875,901 2,416,249 2,123,678
Probable(2)
Reserves Category Conventional Natural Natural Gas
Gas Liquids Oil Equivalent
(Solution Gas)(1)
Gross Net Gross Net Gross Net
(mmcf) (mmcf) (mbbl) (mbbl) (mboe) (mboe)
Proved
Developed Producing 10,647 9,768 48,091 37,810 338,793 272,013
Developed Non- 312 291 754 608 2,509 2,219
Producing
Undeveloped 8,865 7,959 88,001 72,563 1,147,344 883,133
Total Proved(2) 19,824 18,018 136,846 110,981 1,488,647 1,157,365
Total Probable 25,497 22,630 88,447 67,230 1,123,501 801,251
Total Proved Plus 45,321 40,648 225,294 178,211 2,612,148 1,958,616
Probable(2)
Notes:
(1) Conventional Natural Gas (Solution Gas) includes all gas produced in association with light and medium
crude oil and heavy crude oil.
(2)
Figures may not add due to rounding.
Summary of Net Present Value of Future Net Revenue Attributable to Oil and Gas Reserves (Forecast Prices and Costs) as of December 31, 2023
After Deducting Income Taxes
Before Deducting Income Taxes
RESERVES CATEGORY 0 % 5 % 10 % 15 % 20 % Unit 0 % 5 % 10 % 15 % 20 % Unit
Value(3)
Value(2)
(in $ millions)(1)
$/boe
(in $ millions)(1)
$/boe
Proved
Developed Producing 6,322 6,252 5,585 5,002 4,531 20.53 6,322 6,252 5,585 5,002 4,531 20.53
Developed Non
?
Producing 60 50 44 38 35 19.62 60 50 44 38 35 19.62
Undeveloped 27,940 15,219 9,005 5,630 3,639 10.20 25,434 13,660 7,987 4,939 3,153 9.04
Total Proved(4) 34,322 21,521 14,634 10,670 8,205 12.64 31,817 19,962 13,616 9,979 7,719 11.76
Total Probable 32,301 13,192 6,809 4,111 2,751 8.50 28,816 11,376 5,713 3,383 2,234 7.13
Total Proved plus Probable(4) 66,624 34,714 21,442 14,781 10,956 10.95 60,632 31,337 19,329 13,361 9,953 9.87
Notes:
(1) Net present value of future net revenue includes all resource income, including the sale of oil, gas, by-product reserves, processing third party
reserves and other income.
(2) Calculated using net present value of future net revenue before deducting income taxes, discounted at 10% per year, and net reserves. The unit
values are based on net reserves volumes.
(3) Calculated using net present value of future net revenue after deducting income taxes, discounted at 10% per year, and net reserves. The unit values
are based on net reserves volumes.
(4)
Figures may not add due to rounding.
Forecast Prices and Costs
Year Inflation Exchange
Crude Oil Natural Gas
Natural Gas Liquids
(%)(2) Rate
(1) (US$/Cdn$)
(3)
WTI Canadian Western Alberta Edmonton Edmonton Edmonton Ethane
Cushing Light Canadian AECO-C Pentanes Butane Propane Plant
Oklahoma Sweet Select Spot Plus ($Cdn/bbl) ($Cdn/bbl) Gate
40 API Crude 20.5 API ($Cdn/ ($Cdn/bbl) ($Cdn/bbl)
($US/bbl) 40 API ($Cdn/bbl) mmbtu)
($Cdn/bbl)
2024 0.00 0.75 76.00 97.33 81.33 2.33 101.33 50.67 28.21 6.47
2025 2.00 0.75 76.00 97.25 84.67 3.64 101.33 50.67 33.03 10.09
2026 2.00 0.75 76.00 97.17 84.33 3.95 101.33 50.67 32.78 10.93
2027 2.00 0.75 77.52 99.12 86.02 4.03 103.36 51.68 33.44 11.15
2028 2.00 0.75 79.07 101.10 87.74 4.11 105.43 52.71 34.11 11.38
2029 2.00 0.75 80.65 103.12 89.50 4.19 107.54 53.77 34.79 11.60
2030 2.00 0.75 82.26 105.18 91.29 4.27 109.69 54.84 35.48 11.84
2031 2.00 0.75 83.91 107.29 93.11 4.36 111.88 55.94 36.19 12.07
2032 2.00 0.75 85.59 109.43 94.97 4.44 114.12 57.06 36.92 12.31
2033 2.00 0.75 87.30 111.62 96.87 4.53 116.40 58.20 37.66 12.56
Escalation of 2% per year thereafter
Notes:
(1) Product sale prices will reflect these reference prices with further adjustments for quality and
transportation to point of sale.
(2) Inflation rates for forecasting costs only. Prices inflated at 2% after 2024 where applicable.
(3)
The exchange rate is used to generate the benchmark reference prices in this table.
Reconciliation of Changes in Gross Reserves((1))
Conventional Natural Gas
Light & Heavy Crude Bitumen Non- Solution Gas Natural Gas Oil
Equivalent
Medium Crude Oil (mbbl) Associated (mmcf) Liquids (mmboe)
Oil (mbbl) and (mbbl)
(mbbl) Associated
Gas
(mmcf)
Proved
December 31, 2022 2,776 468,679 646,474 824,049 19,896 80,970 1,339,555
Extensions and improved 1,667 35,277 43,248 257 5,575 49,770
recovery(2)
Technical revisions(3) (873) (2,505) 11,663 (12,895) 1,791 1,707 8,155
Discoveries(4)
Acquisitions 22 483,880 53,880 134,549
Dispositions
Economic factors(5) 8 292 892 69 371 831
Production (232) (19,580) (20,355) (52,423) (2,192) (7,466) (56,750)
Infill drilling 1,430 55,785 3 1,809 12,537
December 31, 2023(6) 1,701 449,983 673,057 1,342,535 19,824 136,846 1,488,647
Probable
December 31, 2022 4,499 169,426 630,111 906,539 30,074 60,171 1,020,309
Extensions and improved 879 22,210 21,785 5,092 31,812
recovery(2)
Technical revisions(3) (1,186) (2,729) 27,848 (2,303) (4,514) (1,365) 21,432
Discoveries(4)
Acquisitions 8 206,474 26,811 61,232
Dispositions
Economic factors(5) 37 31 (2,996) (63) (453) (896)
Production
Infill drilling 717 (55,785) (1,809) (10,389)
December 31, 2023(6) 3,359 168,324 680,169 1,073,714 25,497 88,447 1,123,501
Proved Plus Probable
December 31, 2022 7,275 638,105 1,276,584 1,730,588 49,971 141,141 2,359,865
Extensions and improved 2,547 57,487 65,033 257 10,668 81,582
recovery(2)
Technical revisions(3) (2,059) (5,234) 39,510 (15,198) (2,723) 342 29,587
Discoveries(4)
Acquisitions 29 690,354 80,692 195,779
Dispositions
Economic factors(5) 45 323 (2,104) 6 (82) (65)
Production (232) (19,580) (20,355) (52,423) (2,192) (7,466) (56,750)
Infill drilling 2,147 3 2,148
December 31, 2023(6) 5,058 618,307 1,353,226 2,416,249 45,321 225,294 2,612,146
Notes:
(1) Gross reserves means Strathcona's working intertest reserves before calculation of royalties, and before consideration
of Strathcona's royalty interests.
(2) Additions due to new wells drilled and booked during the year, and any reserve changes due to enhanced oil recovery.
(3) Technical revisions also include changes in reserves associated with changes in operating costs, capital costs and
commodity price offsets.
(4)
Additions where no reserves were previously booked.
(5)
Changes to reserves volumes due to changes in price forecasts and/or inflation rates.
(6)
Figures may not add due to rounding
Undiscounted Future Net Revenue by Reserves Category
Reserves Category Revenue Royalties Operating Development Abandonment Future Net Income Future Net
($ millions) Costs Costs and Revenue Taxes Revenue
Reclamation Before After Income
Costs Income Taxes
Taxes
Total Proved 118,432 28,914 36,173 16,568 2,454 34,322 2,506 31,817
Total Probable 114,955 35,395 31,315 15,184 760 32,301 3,486 28,816
Total Proved plus 233,386 64,309 67,488 31,751 3,214 66,624 5,991 60,632
Probable(1)
Notes:
(1) Figures may not add due to
rounding
Fourth Quarter Financial and Operating Results and Conference CallStrathcona will release its fourth quarter 2023 financial and operating results after market close on March 26, 2024 and will host a conference call on March 27, 2024 starting at 9:00AM MT (11:00AM ET).
About StrathconaStrathcona is one of North America's fastest growing oil and gas producers with operations focused on thermal oil, enhanced oil recovery and liquids-rich natural gas. Strathcona is built on an innovative approach to growth achieved through the consolidation and development of long-life oil and gas assets. Strathcona's common shares (symbol SCR) are listed on the Toronto Stock Exchange.
For more information about Strathcona, visit www.strathconaresources.com.
View original content to download multimedia:https://www.prnewswire.com/news-releases/strathcona-resources-ltd-reports-year-end-2023-reserves-302086045.html
SOURCE Strathcona Resources Ltd.
