Grizzly Oil Sands ULC

Grizzly Oil Sands ULC

December 03, 2010 06:55 ET

Grizzly Oil Sands Reports Reserves and Resources

CALGARY, ALBERTA--(Marketwire - Dec. 3, 2010) - Grizzly Oil Sands ULC (Grizzly) announces our report of bitumen reserves and resources effective October 1, 2010 by GLJ Petroleum Consultants (GLJ), who conducted an independent assessment. Properties that will be explored this winter were not included in GLJ's evaluation.

Mapping for the report identified roughly 14.2 billion barrels of discovered bitumen initially in place and roughly 4.5 billion barrels of undiscovered bitumen initially in place.

The following table summarizes GLJ's determination of Grizzly's reserves and resources effective October 1, 2010.



Reserves and Resources Company Interest Recoverable

(Millions of Barrels)

Proved + Probable (2P) Reserves (Algar Lake
Project) 98
----------------------------
----------------------------

Best Estimate (P50) Contingent Resource 1850

Best Estimate (P50) Prospective Resource 202
----------------------------

Best Estimate Contingent + Best Estimate
Prospective Resource 2052
----------------------------
----------------------------


The GLJ report was prepared in accordance with National Instrument 51-101 using the assumptions and methodology outlined in the Canadian Oil and Gas Evaluation handbook.

Grizzly Oil Sands ULC is a private company focused on the development of oil sands resources using steam assisted gravity drainage and a unique modular method for central plant construction. Grizzly's lease holdings cover approximately 520,000 acres and our 11,300 bpd Algar Lake project application is currently before the regulators. It is expected that construction of the first phase of the Algar Lake Project will commence in Q3, 2011. Grizzly will be conducting an extensive exploration program in Q1 of 2011.

Notes:



1. Probable reserves are those additional reserves that are less certain to
be recovered than proved reserves. It is equally likely that the actual
remaining quantities recovered will be greater or less than the sum of
the estimated proved plus probable reserves.
2. Contingent Resources are those quantities of petroleum estimated, as of
a given date, to be potentially recoverable from known accumulations
using established technology or technology under development, but which
are not currently considered to be commercially recoverable due to one
or more contingencies.
3. Prospective Resources are those quantities of petroleum estimated, as of
a given date, to be potentially recoverable from undiscovered
accumulations by application of future development projects.
4. Best Estimate is considered to be the best estimate of the quantity that
will actually be recovered from the accumulation. If probabilistic
methods are used, this term is a measure of central tendency of the
uncertainty distribution (P50).
5. It should be noted that reserves, contingent resources and prospective
resources involve different risks associated with achieving
commerciality. There is no certainty that it will be commercially viable
to produce any portion of the Contingent resources. There is no
certainty that any portion of the Prospective resources will be
discovered. If discovered, there is no certainty that it will be
commercially viable to produce any portion of the prospective resources.
The prospective resource estimates set forth in this press release have
been risked for the chance of discovery but not for the chance of
development and hence are considered partially risked estimates.

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