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NEWS RELEASE
FOR IMMEDIATE RELEASE  

ERCB REPORT SHOWS 14% GROWTH IN ALBERTA OIL SANDS PRODUCTION IN 2009  

Forty three years of Alberta oil sands production yields nearly 7 billion barrels of raw crude bitumen; 16 billion barrels of conventional crude oil produced since the industry began

Calgary, Alberta (June 5, 2010) The Energy Resources Conservation Board (ERCB) has released its annual report Alberta's Reserves 2009 and Supply/Demand Outlook 2010-2019. The ERCB report is a source of information on the state of reserves and the supply and demand outlook for Alberta 's diverse energy resources: crude bitumen, crude oil, natural gas, natural gas liquids, coal, and sulphur.

In 2009, Alberta produced 1.49 million barrels per day of raw crude bitumen from the oil sands. The 2009 yearly total of 544 million barrels produced from the oil sands represents a 14% increase over Alberta 's 2008 oil sands production.

The report notes that, since 1967, Alberta has produced 6.99 billion barrels of raw crude bitumen from the oil sands and conventional oil production has produced 16 billion barrels of crude oil since the industry began.

Also in 2009, Alberta 's conventional oil production totaled 461,300 barrels of oil per day with a yearly total of 169 million barrels. This is an 8.6% reduction from 2008.

The ERCB also forecasts Alberta 's annual bitumen production will total 3.2 million barrels per day for a total of 1.2 billion barrels per year by 2019.

Other report highlights include:

• The ERCB's re-evaluation of the Athabasca Grosmont oil sands area results in a 28% increase to in-place bitumen resource.
• Alberta 's total remaining established bitumen and conventional oil reserves totaled 171.3 billion barrels, consisting of bitumen (169.9 bill ion barrels) and conventional oil (1.4 bill ion barrels).
• Remaining established marketable conventional gas reserves stood at 37.5 trillion cubic feet.
• Remaining established coalbed methane gas reserves stood at 2.3 trillion cubic feet.
• Alberta 's remaining established coal reserves are estimated at about 37 bill ion tons.

Alberta 's Reserves 2009 and Supply/Demand Outlook 2010-2019 is available on the ERCB web site at www.ercb.ca.

For more information, please contact:

Darin Barter, ERCB Communications
Phone: 403-297-4116
Cellular : 403-681-0946
Email: darin.barter@ercb.ca

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NR 2010-06

Alberta 's Reserves 2009 and Supply/Demand Outlook 2010 – 2019
Fast Facts

Bitumen Reserves and Production

• Based on recent drilling results the Athabasca Grosmont deposit was re-evaluated for 2009. The re-evaluation, the first since 1990, resulted in a 28 per cent increase to in-place carbonate crude bitumen resource to 406 billion barrels (64.5 billion m ³ ). Established reserves were not estimated due to the absence of approved commercial projects.
  
• The Cold Lake Upper and Lower Grand Rapids deposits were re-evaluated, the first since 1999, with initial in-place resources decreasing 20 and 5 per cent to 33.8 and 62.9 billion barrels (5.4 and 10.0 billion m ³ ) respectively. The Athabasca Wabiskaw-McMurray deposit was updated with a minor decrease of 0.4 per cent of initial in-place resources to 959 billion barrels (152.4 billion m ³ ). A review of the established reserves for these deposits has not yet been completed.
  
• The total provincial remaining bitumen established reserve estimate was revised from the previous year's 170.4 bill ion barrels (27.07 billion m ³ ) to 169.9 bill ion barrels (26.99 billion m ³ ), due to 2009 production.
  
• Alberta raw bitumen production is expected to increase to 3.2 million barrels (506 700 m ³ ) per day by 2019 based on announced expansions of existing projects and commencement of new projects.
  
• In 2009, Alberta produced 544 million barrels (86.4 million m ³ ), or 1.49 million barrels (236 700 m ³ ) per day, of raw bitumen from the oil sands, a 14 per cent increase from 2008. This increase was due in part to increased mined bitumen production by Suncor, the ramp-up of production from CNRL's Horizon Project, and in-situ SAGD production increases in the Athabasca OSA.
  
• In 2009, upgraded bitumen yielded 765 800 barrels (121 700 m ³ ) per day of synthetic crude oil. This corresponds to approximately 61 per cent of total raw bitumen production being upgraded in Alberta to synthetic crude oil.
  
• By 2019, synthetic crude oil production is forecast to increase by approximately 77 per cent, to 1.3 million barrels (215 000 m ³ ) per day.

Conventional Oil Reserves and Production

• Alberta 's remaining established reserves of conventional oil are estimated at 1.4 billion barrels (228 million m ³ ), a 2 per cent decrease from 2008. This decline is consistent with the trend over previous years.
  
• In 2009, drilling added 102 million barrels (16.2 million m ³ ) of conventional oil reserves, replacing 60 per cent of 2009 production.
  
• The ERCB estimates the remaining ultimate potential of conventional oil at 3.5 billion barrels (564 million m ³ ).
  
• In 2009, Alberta produced 169 million barrels (26.76 million m ³ ) of conventional oil, or 461 300 barrels (73 300 m ³ ) per day.
  
• In 2009, the number of wells placed on crude oil production decreased to 1046, falling 41 per cent from 2008 levels.
  
• The ERCB estimates the number of new wells placed on production will increase to 1 500 wells in 2010, 1700 in 2011, 1900 in 2012 and level out at 2000 wells for the remaining forecast period.

Total Oil Supply and Demand

• In 2009, Alberta produced 1.93 million barrels (306 600 m ³ ) per day of conventional oil, marketable crude bitumen, and pentanes plus. This is an increase of 4.4 per cent compared to 2008 due to the increase in marketable crude bitumen production.
  
• By 2019, the ERCB forecasts production of 3.3 million barrels (522 900 m ³ ) per day, of which 2.9 million barrels per day is marketable crude bitumen (synthetic crude 1.3 million barrels per day and non-upgraded bitumen 1.6 million barrels per day). The ability to increase bitumen production has offset the continuing decline in conventional crude oil.
  
• Alberta 's total remaining established bitumen and oil reserves includes 1.4 bill ion barrels of conventional oil and 169.9 billion barrels of bitumen. This positions Alberta as a net supplier of oil for many decades to come.

Conventional Natural Gas Reserves and Production

• In 2009, remaining established reserves of conventional natural gas stood at 37.5 trillion cubic feet (1056 billion m ³ ).
  
• Reserve additions as a result of new drilling replaced 54 per cent of 2009 gas production.
  
• The ERCB estimates remaining ultimate potential of marketable natural gas at 78 tcf (2201 billion m ³ ).
  
• Alberta produced 4.0 trillion cubic feet (113.9 bill ion m ³ standardized to 37.4 MJ/m ³ ) of marketable conventional natural gas in 2009, down 8.9 per cent from last year's production.
  
• The ERCB estimates the number of new conventional gas well connections in the province to decline to 2800 in 2010, a 26 per cent decrease relative to the 2009 well connections of just over 3760.

Unconventional Natural Gas

• An estimate of Alberta 's coalbed methane remaining reserves of 2.29 trillion cubic feet (64.5 bill ion m ³ ) has been determined. This is up significantly from 2008 due to the re-evaluation of the Mannville deposit.
  
• In 2009, Alberta produced 318 bill ion cubic feet (9.0 billion m ³ ), an increase of 6 per cent from 2008.
  
• In 2003, the Alberta Geological Survey (part of the ERCB) released an estimate of 500 trillion cubic feet (14.1 trillion m ³ ) of gas in place within all the coal of Alberta.
  
• The ERCB expects to publish in-place shale gas resource estimates in the near future. The estimation of established reserves will then follow as commercial activity takes place and an assessment of shale gas recoverability can be made.

Ethane

• Remaining established reserves of extractable ethane is estimated at 736 million barrels (117 million m ³ ).
  
• Production of specification ethane in 2009 decreased marginally to 81 million barrels (12.8 million m ³ ) compared to 2008.

Coal Reserves and Production

• The current estimate for remaining established reserves for all types of coal is about 37 bill ion tons (33 billion tonnes).
  
• Alberta 's total 2009 marketable coal production was 36 million tons (32 million tonnes). By 2019, total production is expected to increase by 3.6 per cent, with the largest increase in production expected to come from metallurgical grade coal as a result of the planned opening of new mines.

Reserves Definitions

Initial in-place: The volume or mass of oil, gas, bitumen or coal calculated or interpreted to exist in the ground before any quantity has been produced.

Established reserves: Reserves recoverable under current technology and present and anticipated economic conditions specifically proven by drilling, testing, or production, plus the portion of reserves interpreted to exist from geological, geophysical, or similar information with reasonable certainty.

Initial established reserves: Established reserves prior to the deduction of any production.

Cumulative production: The sum of production volumes or mass from all prior years.

Remaining established reserves: Initial established reserves minus cumulative production.

Ultimate potential: An estimate of initial established reserves that will have been developed in an area by the time all exploratory and development activity has ceased, having regard for the geological prospects of the area and anticipated technology and economic conditions.

For more information contact:

Darin Barter, ERCB Communications
Phone: 403-297-4116
Email: darin.barter@ercb.ca