Suncor Energy Inc.

Suncor Energy Inc.

November 14, 2006 00:00 ET

Suncor Energy Board approves 2007 capital spending plan

(All financial figures are approximate and in Canadian dollars unless otherwise noted.)

Calgary, Alberta (November 14, 2006) — Suncor Energy Inc. announced today that its Board of Directors has approved the company's $5.3 billion capital spending plans for 2007. Of this total, approximately $4.3 billion, or about 80% of the total capital budget, is expected to be targeted to company-wide growth projects, debottlenecking and productivity improvement in the oil sands business, and exploration and development spending in the natural gas business. Approximately $1 billion will be directed to sustaining existing operations company-wide.

"Our capital spending plans reflect Suncor's significant growth opportunities over the next several years," said Rick George, president and chief executive officer. "As we pursue those opportunities, managing our capital spending to provide a solid return on investment will be of key importance."

Approximately $4.4 billion of the budgeted spending, including growth and sustaining capital, is planned for Suncor's oil sands operations. Of this investment, approximately $900 million is slated to sustaining existing operations, including the planned relocation of mining and extraction facilities to support extended mining areas. Of the remaining $3.5 billion in planned spending, approximately $1 billion is allotted to project spending towards Suncor's goals of increasing production to 350,000 barrels per day (bpd) in 2008, including debottlenecking and productivity improvements, with $2.5 billion directed toward projects to support the company's goal of producing more than half a million barrels per day in the 2010 to 2012 timeframe.

Capital spending of approximately $350 million is planned for Suncor's natural gas business to maintain existing operations and support the company's goal of expanding production by 3% to 5% per year.

In Suncor's Canadian downstream operations, plans call for $300 million to be spent in 2007, primarily aimed toward completing modifications to the Sarnia refinery that will enable the facility to process up to 40,000 barrels per day of oil sands sour crude blends. In the company's U.S. downstream operations, capital spending of approximately $100 million (approximately US$85 million) is planned.

While working to responsibly develop hydrocarbon resources, Suncor is also investing in renewable energy sources. Spending of approximately $120 million is planned to support renewable energy development, including construction of the company's fourth wind power project near Ripley, Ontario and planned investment in biofuels.

Suncor expects similar levels of company-wide capital spending over the next several years. However, specific future project budgets, including capital costs for Suncor's planned third upgrader and Steepbank mine extension are subject to regulatory approvals and, subsequent to completion of detailed engineering, Board of Directors' approval, which may impact project scope and costs.

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. Estimating and budgeting for major capital projects is a process that involves uncertainties and that evolves in stages, each with progressively more refined data and a correspondingly narrower range of uncertainty. At very early stages, when broad engineering design specifications are developed, the level of uncertainty can result in price ranges with -30% / +50% (or similar levels) of uncertainty. As project engineering progresses, vendor bids are studied, goods and materials ordered and as the company moves closer to the build stage, the level of uncertainty narrows. Generally, when projects receive final Board of Directors approval, cost estimates have a range of uncertainty that has narrowed to the -10% / +10% or similar range. These ranges establish an expected high and low capital cost estimate for a project. When Suncor says that a project is "on budget", it means we still expect the final project capital cost to fall within the current range of uncertainty for the project. Even at this stage, the uncertainties in the estimating process and the impact of future events, can and will cause actual results to differ, in some cases materially, from our estimates. Some of the forward-looking statements in this document may be identified by words like "plans", "expected", "targeted", "slated", "allotted" "goal", "aimed" 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. These could include: changes in general economic, market and business conditions; fluctuations in supply and demand for Suncor's products; fluctuations in commodity prices and currency exchange rates; the impact of stakeholder consultation; the regulatory process; technical issues; environmental issues; technological capabilities; new legislation; actions by governmental authorities including the imposition of taxes or changes to fees and royalties,the occurrence of unexpected events; Suncor's capability to execute and implement its future plans; and changes in current plans. 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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