Canadian Oil Sands - Annual Report

How We Measured Up

	2006 Outlook (as at Feb. 22, 2006)		2006 Actual		2007 Outlook
Sales (MMbbls net to COS)	34 – 39		33.5		39 – 44
Operating costs ($/bbl)	$	25.88	$	27.07	$	25.83
Cash from operating activities ($/unit)	$	2.08	$	2.45	$	1.79
Free cash flow ($/unit)	$	1.42	$	1.78	$	1.25
Capital expenditures ($ millions)	$	303	$	300	$	255
Assumptions:
WTI crude oil price (US$/bbl)	$	55.00	$	66.25	$	55.00
Differential to Cdn$ WTI (Cdn$/bbl)	$	(1.50)	$	(2.57)	$	(4.00)
AECO natural gas (Cdn$/GJ)	$	10.78	$	6.26	$	7.50
Foreign exchange rate (US$/Cdn$)	$	0.85	$	0.88	$	0.88

Adjusted for 5:1 Unit split.
Changes in certain factors and market conditions could potentially impact this Outlook.In particular, cash from operating activities and free cash flow are highly sensitive to crude oil prices; in 2007, every US$1.00 per barrel change in the WTI crude oil price impacts cash from operating activities and free cash flow by $0.07 per Unit. A sensitivity analysis of the key factors affecting the Trust’s Outlook is provided in its January 29, 2007 Guidance Document, which is available on the Trust’s website at: www.cos-trust.com/investor/guidance. The Trust expects to revise its Outlook throughout the year, generally on a quarterly basis.
For 2007 and beyond, Canadian Oil Sands is focusing on cash from operating activities (per the Trust’s Consolidated Statements of Cash Flows) as our measure of the Trust’s ability to generate cash from operations. Previously, Canadian Oil Sands reported funds from operations, which did not include changes in non-cash working capital from operating activities. Cash from operating activities provides similar information to funds from operations and has better comparability to other reporting entities as it is a GAAP measure.

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