Suncor Energy Inc.

Suncor Energy Inc.

November 14, 2006 00:00 ET

Next stage of Suncor Energy's oil sands growth plan approved by regulators

Calgary, Alberta (November 14, 2006) - Suncor Energy Inc. announced today that the Alberta Energy and Utilities Board (EUB) has approved the company's application to construct a third oil sands upgrader, the centerpiece in Suncor's plans to expand oil sands production to more than half a million barrels per day (bpd) in 2010 to 2012. Regulators also approved Suncor's associated plans to develop the Steepbank mine extension, a key element in supplying bitumen to future upgrading operations. The approval includes several conditions.

"Regulatory approval of our upgrader and mine expansion applications is a major milestone in Suncor's growth plans," said Steve Williams, Suncor's executive vice president, Oil Sands. "This was the most complex regulatory filing in Suncor's history, involving thousands of hours of consultation with local, regional and provincial stakeholders during project planning. We worked very closely with stakeholders on this application and the conditional approval received today reflects those efforts. We believe we will be able to meet the conditions."

In granting conditional approval, the EUB places several conditions on Suncor, including three conditions dealing specifically with managing tailings, the mixture of water, clay, sand and residual bitumen produced during the extraction process.

Where appropriate, Suncor's implementation of the conditions will be integrated into detailed engineering and site preparation work for both projects, which is expected to begin in early 2007. Once engineering is sufficiently advanced, Suncor management expects to seek final Board of Directors approval and to provide detailed cost estimates.

While planning and preparations for this next phase of growth are under way, work continues on the company's current phase of oil sands expansion. With commissioning targeted in 2008, the current expansion is expected to increase production capacity to 350,000 bpd from current capacity of 260,000 bpd. Engineering for this project is nearing completion and, as of the end of the third quarter (September 30, 2006), construction was 65% complete. Work under way also includes the expansion of Suncor's in-situ operations, with construction targeted for completion in 2007.

This news release contains forward-looking statements that address goals, expectations or projections about the future. These statements are based on Suncor's current goals, expectations, estimates, projections and assumptions, as well as its current budgets and plans for capital expenditures. Some of the forward-looking statements may be identified by the words "plans", "believe", "targeted", "expected", "likely" and similar expressions. These statements are not guarantees of future performance. Actual results could differ materially, as a result of factors, risks and uncertainties, known and unknown, to which Suncor's business is subject. Further discussion of the risks, uncertainties and other factors that could affect these plans, and any actual results, is included in Suncor's annual report to shareholders and other documents filed with regulatory authorities.

Suncor Energy Inc. is an integrated energy company headquartered in Calgary, Alberta. Suncor's oil sands business, located near Fort McMurray, Alberta, extracts and upgrades oil sands and markets refinery feedstock and diesel fuel, while operations throughout western Canada produce natural gas. Suncor operates a refining and marketing business in Ontario with retail distribution under the Sunoco brand. U.S.A. downstream assets include pipeline and refining operations in Colorado and Wyoming and retail sales in the Denver area under the Phillips 66® brand. Suncor's common shares (symbol: SU) are listed on the Toronto and New York stock exchanges.

Suncor Energy (U.S.A.) Inc. is an authorized licensee of the Phillips 66® brand and marks in the state of Colorado. Sunoco in Canada is separate and unrelated to Sunoco in the United States ,which is owned by Sunoco, Inc. of Philadelphia.

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