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.

Strathcona has posted a shareholder letter on its website which provides additional detail on its 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 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
Year ⁽¹⁾	Inflation (%)⁽²⁾	Exchange Rate (US$/Cdn$) ⁽³⁾	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.

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For more information about Strathcona, visit www.strathconaresources.com.

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