Suncor Hedges to Protect Production Assets


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Suncor has entered into crude oil hedges for approximately 125,000 barrels per day (bpd) of production from February 1 through December 31, 2009. These volumes are in addition to a previously reported option to sell 55,000 bpd at an equivalent WTI floor price of US$60.00 per barrel for January 1 to December 31, 2009. The combination of the previous options and new fixed-price hedges provide Suncor with an equivalent WTI floor price of about US $53.50 for approximately 180,000 bpd of production in 2009.

"These contracts will protect us from some of the downside in crude market movements this year, while still leaving open the opportunity to
participate in any improvement in crude prices for more than half of our planned 2009 production," said Rick George, president and chief executive officer.

For the full year 2010, Suncor reports it has entered into crude oil hedges for an average 50,000 bpd at an equivalent WTI floor price of US$50.00 per barrel and a ceiling price of approximately US$68.00 per barrel. This program replaces a previously reported 2010 option to sell 55,000 bpd at an equivalent WTI floor price of US$60.00, which was effectively exited by selling similar contracts for gross proceeds to Suncor of approximately Cdn$250 million before tax.
 

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