Based on an independent reserves evaluation by Gilbert Laustsen Jung Associates Ltd. effective December 31, 2003 and prepared in accordance with National Instrument ("NI") 51-101, Canadian Oil Sands has proved reserves of 1,070 million barrels of Syncrude Sweet Blend and total proved plus probable reserves of 1,849 million barrels of Syncrude Sweet Blend.
The Trust's proved reserves represent a reserve life of approximately 35 years based on the Trust's 2004 annual production outlook of 30.5 million barrels. This reserve life extends to almost 60 years when the probable reserves are included. Proved developed producing reserves represent 52 per cent of proved plus probable reserves while total proved reserves account for 58 per cent of proved plus probable reserves. The proved reserves include the Aurora North mine, which is also inclusive of the Stage 3 expansion.
The Trust, through its two wholly-owned subsidiaries, holds a 35.49 per cent interest in the Syncrude Project, of which 89.4 per cent of the interest is held by its main subsidiary, Canadian Oil Sands Limited, and 10.6 per cent is held through another subsidiary. These subsidiaries have an exemption from the requirement to file information annually under NI 51-101 separately from the Trust.
Canadian Oil Sands Trust is an open-ended investment trust that generates income from its 35.49 per cent working interest in the Syncrude Joint Venture. Syncrude is one of the largest participants in the expanding development of Alberta's oil sands, a vast resource that rivals the crude oil reserves of Saudi Arabia. The Trust's approximately 87.5 million units outstanding trade on the Toronto Stock Exchange under the symbol COS.UN. The Trust is managed by Canadian Oil Sands Limited.
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