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.

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 &
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.

Summary of Net Present Value of Future Net Revenue Attributable to Oil and Gas Reserves (Forecast Prices and Costs) as of December 31, 2023



 

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 NonProducing


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

(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.

Reconciliation of Changes in Gross Reserves(1)







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

Undiscounted Future Net Revenue by Reserves Category

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

Fourth Quarter Financial and Operating Results and Conference Call

Strathcona 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 Strathcona

Strathcona 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.

SOURCE Strathcona Resources Ltd.


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