Suncor Energy sells majority of conventional natural gas business in Western
(All financial figures are approximate and in Canadian dollars unless
CALGARY, ALBERTA -- (Marketwired) -- 04/15/13 -- Suncor Energy today
announced it has reached an agreement to sell the conventional
portion of its natural gas business in Western Canada for $1 billion
to a newly established partnership between Centrica plc (LSE: CNA)
and Qatar Petroleum International. Estimated production from this
business in 2013 is approximately 42,000 boe/d (90% gas).
The sale includes properties situated across multiple regions in
Alberta, northeast British Columbia and southern Saskatchewan.
Excluded are the majority of Suncor's unconventional natural gas
properties in the Montney region of British Columbia and the
company's Wilson Creek, Alberta unconventional oil assets.
"Today's announcement is further proof of our commitment to capital
discipline and aligning assets with strategic objectives," said Steve
Williams, president and chief executive officer. "We will
continuously review and refine our portfolio of assets to ensure we
are investing in projects that deliver profitable growth and strong
returns for our shareholders."
The purchase price is subject to closing adjustments on an economic
basis, effective January 1, 2013, typical of transactions of this
nature. The sale is subject to regulatory approval, including under
the Investment Canada Act and Competition Act and is expected to
close during the third quarter.
Production guidance for the North American Onshore business segment
is expected to be adjusted after closing of the transaction.
Certain statements in this news release constitute "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and "forward-looking
information" within the meaning of applicable Canadian securities
legislation (collectively, "forward-looking statements"). All
forward-looking statements are based on Suncor's current
expectations, estimates, projections, beliefs and assumptions based
on information available at the time the statement was made and in
light of Suncor's experience and its perception of historical trends.
Some of the forward-looking statements may be identified by words
like "expected," "subject to," "will be," and similar expressions. In
addition, all other statements that address expectations or
projections about the future, including statements about our strategy
for growth, costs, schedules, production volumes, operating and
financial results and expected impact of future commitments, are
Forward-looking statements in this news release include our
assumption that the transaction will close as described.
Forward-looking statements are not guarantees of future performance
and involve a number of risks and uncertainties, some that are
similar to other oil and gas companies and some that are unique to
our company. Suncor's actual results may differ materially from those
expressed or implied by our forward-looking statements and you are
cautioned not to place undue reliance on them.
Suncor's Earnings Release and its most recently filed Annual
Information Form/Form 40-F, Annual Report to Shareholders and other
documents it files from time to time with securities regulatory
authorities describe the risks, uncertainties, material assumptions
and other factors that could influence actual results and such
factors are incorporated herein by reference.
Copies of these documents are available without charge from Suncor at
150 6th Avenue S.W., Calgary, Alberta T2P 3Y7, by calling
1-800-558-9071, or by email request to email@example.com or by
referring to the company's profile on SEDAR at www.sedar.com or EDGAR
at www.sec.gov. Except as required by applicable securities laws,
Suncor disclaims any intention or obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
Suncor converts natural gas to barrels of oil equivalent (BOEs) at
the ratio of six thousand cubic feet: one barrel. BOEs may be
misleading, particularly if used in isolation. A BOE conversion ratio
of six thousand cubic feet of natural gas: one barrel of oil is based
on an energy equivalency conversion method primarily applicable at
the burner tip and does not represent a value equivalency at the
Suncor Energy is Canada's premier integrated energy company. Suncor's
operations include oil sands development and upgrading, conventional
and offshore oil and gas production, petroleum refining, and product
marketing under the Petro-Canada brand. While working to responsibly
develop petroleum resources, Suncor is also developing a growing
renewable energy portfolio. Suncor's common shares (symbol: SU) are
listed on the Toronto and New York stock exchanges.
For more information about Suncor Energy please visit our web site at
www.suncor.com, follow us on Twitter @SuncorEnergy or read our blog,
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