Quality Resource Base

The size and quality of Syncrude’s resource base provide the project with a distinct advantage. Syncrude’s eight leases envelop some of the richest resource in Alberta’s oil sands. Proved plus probable reserves of fully upgraded crude oil are estimated at five billion barrels. An additional four billion barrels of contingent recoverable resource is expected to be reclassified as proved plus probable if and when the plans to develop them are implemented, and we obtain approval from the Syncrude owners and the regulatory authorities. 

The quality of Syncrude’s resource is also among the best. Syncrude’s Aurora North and South leases have low total volume to bitumen in place ratios (“TV/BIP”) of 7.2 and 8.1, respectively. These deposits are the future of Syncrude’s operations and their low TV/BIP ratios enhance the economics of the Syncrude project. TV/BIP measures the total volume of material (dirt, sand and bitumen) relative to the volume of bitumen in place; it considers how much waste must be removed to access the bitumen deposit and the ore grade, or the richness of the deposit. Other oil sands mining projects have TV/BIP ranges of 7.0 to 10.7.

Long-life Resources	Syncrude	Canadian Oil Sands1
As at December 31, 2006
(billions of barrels of SSB)
Proved Reserves2	2.8	1.0
Proved plus Probable Reserves2	5.0	1.8
Estimated Recoverable Resources (includes proved plus probable reserves and contingent resources)	9	3

1. The Trust, through its operating subsidiaries, held a 35.49% interest in the Syncrude project as at December 31, 2006. On January 2, 2007, the Trust’s interest in Syncrude rose to 36.74%.
2. Gross reserve volumes before deduction of Crown royalties, based on independent reserves evaluation by GLJ Petroleum Consultants effective December 31, 2006 and prepared in accordance with National Instrument 51-101.