Strathcona Resources Ltd. Reports Year End 2023 Reserves

Strathcona has posted a shareholder letter on its website which provides additional detail on its 2023 reserves.

Reserves Category

Light &
Medium Crude Oil

Heavy
Crude Oil

Bitumen

Conventional Natural Gas
(Associated &
Non-Associated
Gas)

Gross
(mbbl)

Net
(mbbl)

Gross
(mbbl)

Net
(mbbl)

Gross
(mbbl)

Net
(mbbl)

Gross
(mmcf)

Net
(mmcf)

Proved

Developed Producing

925

719

92,897

80,576

119,623

83,009

452,900

409,622

Developed Non-
Producing

1

1

826

765

–

–

5,257

4,780

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
Probable(2)

5,059

3,709

618,307

540,073

1,353,226

875,901

2,416,249

2,123,678

Reserves Category

Conventional Natural Gas
(Solution Gas)(1)

Natural Gas Liquids

Oil Equivalent

Gross
(mmcf)

Net
(mmcf)

Gross
(mbbl)

Net
(mbbl)

Gross
(mboe)

Net
(mboe)

Proved

Developed Producing

10,647

9,768

48,091

37,810

338,793

272,013

Developed Non-
Producing

312

291

754

608

2,509

2,219

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
Probable(2)

45,321

40,648

225,294

178,211

2,612,148

1,958,616

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.

 

Before Deducting Income Taxes

After Deducting Income Taxes

RESERVES CATEGORY

0 %

5 %

10 %

15 %

20 %

Unit
Value(2)

0 %

5 %

10 %

15 %

20 %

Unit Value(3)

(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.

Year

(1)

Inflation
(%)(2)

Exchange
Rate
(US$/Cdn$)
(3)

Crude Oil

Natural Gas

Natural Gas Liquids

WTI
Cushing
Oklahoma
40 API
($US/bbl)

Canadian
Light
Sweet
Crude
40 API
($Cdn/bbl)

Western
Canadian
Select
20.5 API
($Cdn/bbl)

Alberta
AECO-C
Spot
($Cdn/
mmbtu)

Edmonton
Pentanes
Plus
($Cdn/bbl)

Edmonton
Butane
($Cdn/bbl)

Edmonton
Propane
($Cdn/bbl)

Ethane
Plant
Gate
($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.

Conventional Natural Gas

Light &
Medium Crude
Oil
(mbbl)

Heavy Crude
Oil
(mbbl)

Bitumen
(mbbl)

Non-
Associated
and
Associated
Gas
(mmcf)

Solution Gas
(mmcf)

Natural Gas
Liquids
(mbbl)

Oil Equivalent
(mmboe)

Proved

December 31, 2022

2,776

468,679

646,474

824,049

19,896

80,970

1,339,555

Extensions and improved
recovery(2)

–

1,667

35,277

43,248

257

5,575

49,770

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
recovery(2)

–

879

22,210

21,785

–

5,092

31,812

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
recovery(2)

–

2,547

57,487

65,033

257

10,668

81,582

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

Reserves Category
($ millions)

Revenue

Royalties

Operating
Costs

Development
Costs

Abandonment
and
Reclamation
Costs

Future Net
Revenue
Before
Income
Taxes

Income
Taxes

Future Net
Revenue
After Income
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
Probable(1)

233,386

64,309

67,488

31,751

3,214

66,624

5,991

60,632

Notes:

(1)

Figures may not add due to rounding