Production
Syncrude’s annual production in 2007 totaled 111.3 million barrels, or approximately 305,000 barrels per day, compared with 94.3 million barrels, or about 258,400 barrels per day, during 2006. Net to the Trust, production totalled 40.9 million barrels in 2007 based on our 36.74 per cent working interest compared with 33.5 million barrels in 2006 based on a 35.49 per cent interest. Production in 2007 exceeded the original budget estimate of 110 million barrels Canadian Oil Sands provided on December 7, 2006. The Trust revised its estimate for annual Syncrude production to 111 million barrels on October 31, 2007 to reflect better than anticipated operational reliability during the first nine months of the year.
The Trust is estimating Syncrude production to total 115 million barrels in 2008 with a range of 110 to 120 million barrels (net to the Trust, equivalent to 42 million barrels with a range of 40 to 44 million barrels).
The single point production estimate incorporates Syncrude’s extensive 2008 maintenance program, an allowance for unplanned outages and recognition that Syncrude is still working to establish reliable Stage 3 design rates. During 2008, Syncrude plans to perform turnarounds of Coker 8-1 (second quarter) and Coker 8-2 (third quarter) as well as associated maintenance work on other units. The production range reflects our current best estimate of the upside and downside in volumes Syncrude could experience, depending on operational reliability, in 2008.
Reserves
Based on independent reserves and resources estimates by GLJ Petroleum Consultants Ltd. (“GLJ”) as of December 31, 2007, the best estimate of proved plus probable reserves of 4.9 billion barrels of fully upgraded synthetic crude oil remains virtually unchanged from 5 billion barrels at December 31, 2006. The best estimate for remaining recoverable resources is 12.7 billion barrels of fully upgraded synthetic crude oil. The Trust previously disclosed remaining recoverable resources of approximately 9 billion as of December 31, 2006 (all figures gross to the Syncrude Project). The increase in resources reflects the reporting of a new category, known as prospective resources, as well as mine pit design criteria that expand the pit sizes in some areas, consistent with the current business environment.