Strathcona Resources Ltd. Reports Year End 2023 Reserves

CALGARY, AB, March 11, 2024 /CNW/ - 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.

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

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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 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.

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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