EXHIBIT 99.3

Interim Unaudited Financial Statements of Suncor Energy Inc. for the six months
ended June 30, 2007

016Suncor Energy Inc.

2007 Second Quarter

Consolidated statements of earnings

(unaudited)

	Second quarter				Six months ended June 30
($ millions)	2007		2006		2007		2006
Revenues (note 4)	4 358		4 070		8 309		7 928
Expenses
Purchases of crude oil and products	1 518		1 233		2 656		2 184
Operating, selling and general (notes 4 and 7)	892		654		1 732		1 426
Energy marketing and trading activities (note 4)	610		354		1 181		616
Transportation and other costs	49		47		95		98
Depreciation, depletion and amortization	204		166		394		324
Accretion of asset retirement obligations	12		9		24		17
Exploration	37		31		69		62
Royalties (note 11)	131		299		320		628
Taxes other than income taxes	164		142		322		282
Loss (gain) on disposal of assets	1		1		1		(3	)
Project start-up costs	23		5		26		26
Financing income (note 5)	(74	)	(20	)	(85	)	(13	)
	3 567		2 921		6 735		5 647
Earnings Before Income Taxes	791		1 149		1 574		2 281
Provision for (Recovery of) Income Taxes (note 10)
Current	83		(8	)	245		(9	)
Future	67		(61	)	137		359
	150		(69	)	382		350
Net Earnings	641		1 218		1 192		1 931
Per Common Share (dollars), (note 6)
Basic	1.39		2.65		2.59		4.21
Diluted	1.36		2.59		2.53		4.10
Cash dividends	0.10		0.08		0.18		0.14

See accompanying notes.

For more information about Suncor Energy, visit our website www.suncor.com

Suncor Energy Inc.   017

2007 Second Quarter           

Consolidated balance sheets

(unaudited)

	June 30	December 31
	2007	2006
		(restated)
($ millions)		(note 2)
Assets
Current assets
Cash and cash equivalents	952	521
Accounts receivable (notes 2 and 4)	1 127	1 050
Inventories	623	589
Income taxes receivable	—	33
Future income taxes	102	109
Total current assets	2 804	2 302
Property, plant and equipment, net	18 107	16 189
Deferred charges and other (notes 2 and 4)	319	268
Total assets	21 230	18 759
Liabilities and Shareholders’ Equity
Current liabilities
Short-term debt	6	7
Accounts payable and accrued liabilities (notes 2, 4 and 11)	2 431	2 111
Taxes other than income taxes	63	40
Income taxes payable	151	—
Total current liabilities	2 651	2 158
Long-term debt (note 12)	3 152	2 363
Accrued liabilities and other (notes 2 and 4)	1 171	1 214
Future income taxes (notes 2, 4 and 10)	4 203	4 072
Shareholders’ equity (see below)	10 053	8 952
Total liabilities and shareholders’ equity	21 230	18 759

Shareholders’ Equity

	Number			Number
	(thousands)			(thousands)
Share capital	461 237	833		459 944	794
Contributed surplus		134			100
Accumulated other comprehensive income (notes 2 and 4)		(157	)		(71	)
Retained earnings (note 2)		9 243			8 129
Total shareholders’ equity		10 053			8 952

See accompanying notes.

Inquiries John Rogers (403) 269-8670

018Suncor Energy Inc.

2007 Second Quarter

Consolidated statements of cash flows

(unaudited)

	Second quarter				Six months ended June 30
($ millions)	2007		2006		2007		2006
Operating Activities
Cash flow from operations	884		1 320		1 674		2 634
Decrease (increase) in operating working capital
Accounts receivable	67		268		(72	)	(149	)
Inventories	(23	)	(103	)	(34	)	(27	)
Accounts payable and accrued liabilities	317		(125	)	230		(366	)
Taxes payable	55		39		207		23
Cash flow from operating activities	1 300		1 399		2 005		2 115
Cash Used in Investing Activities	(1 322	)	(797	)	(2 422	)	(1 454	)
Net Cash Surplus (Deficiency) Before Financing Activities	(22	)	602		(417	)	661
Financing Activities
Decrease in short-term debt	—		(21	)	(1	)	(41	)
Net proceeds from issuance of long-term debt	806		—		1 407		—
Net decrease in long-term debt	(256	)	(522	)	(487	)	(616	)
Issuance of common shares under stock option plan	23		11		28		33
Dividends paid on common shares	(45	)	(33	)	(78	)	(58	)
Deferred revenue	—		6		3		16
Cash provided by (used in) financing activities	528		(559	)	872		(666	)
Increase (Decrease) in Cash and Cash Equivalents	506		43		455		(5	)
Effect of Foreign Exchange on Cash and Cash Equivalents	(22	)	(2	)	(24	)	(2	)
Cash and Cash Equivalents at Beginning of Period	468		117		521		165
Cash and Cash Equivalents at End of Period	952		158		952		158

See accompanying notes.

For more information about Suncor Energy, visit our website www.suncor.com

Suncor Energy Inc.   019

2007 Second Quarter           

Consolidated statements of changes in shareholders’ equity

(unaudited)

				Cumulative				Accumulated
				Foreign				Other
	Share	Contributed		Currency		Retained		Comprehensive
($ millions)	Capital	Surplus		Translation		Earnings		Income (AOCI)
At December 31, 2005, as previously reported	732	50		(81	)	5 295		—
Retroactive adjustment for change in accounting policy (note 2)	—	—		81		—		(81	)
At December 31, 2005, as restated	732	50		—		5 295		(81	)
Net earnings	—	—		—		1 931		—
Dividends paid on common shares	—	—		—		(58	)	—
Issued for cash under stock option plan	37	(4	)	—		—		—
Issued under dividend reinvestment plan	5	—		—		(5	)	—
Stock-based compensation expense	—	19		—		—		—
Change in AOCI related to foreign currency translation	—	—		—		—		(36	)
At June 30, 2006	774	65		—		7 163		(117	)
At December 31, 2006, as previously reported	794	100		(71	)	8 129		—
Retroactive adjustment for change in accounting policy (note 2)	—	—		71		—		(71	)
At December 31, 2006, as restated	794	100		—		8 129		(71	)
Net earnings	—	—		—		1 192		—
Dividends paid on common shares	—	—		—		(78	)	—
Issued for cash under stock option plan	34	(6	)	—		—		—
Issued under dividend reinvestment plan	5	—		—		(5	)	—
Stock-based compensation expense	—	38		—		—		—
Income tax benefit of stock option deduction in the U.S.	—	2		—		—		—
Adjustment to opening retained earnings arising from ineffective portion of cash flow hedges at January 1, 2007	—	—		—		5		—
Adjustment to opening AOCI arising from effective portion of cash flow hedges at January 1, 2007	—	—		—		—		8
Change in AOCI related to foreign currency translation	—	—		—		—		(108	)
Change in AOCI related to derivative hedging activities	—	—		—		—		14
At June 30, 2007	833	134		—		9 243		(157	)

See accompanying notes.

Inquiries John Rogers (403) 269-8670

020Suncor Energy Inc.

2007 Second Quarter

Schedules of segmented data

(unaudited)

															Second quarter
	Oil Sands			Natural Gas			Refining and Marketing (note 3)				Corporate and Eliminations				Total
($ millions)	2007		2006	2007		2006	2007		2006		2007		2006		2007		2006
EARNINGS
Revenues
Operating revenues	1 334		1 642	136		120	2 251		1 938		1		1		3 722		3 701
Energy marketing and trading activities	—		—	—		—	629		383		(1	)	(18	)	628		365
Intersegment revenues	143		261	8		11	—		—		(151	)	(272	)	—		—
Interest	—		—	—		—	1		1		7		3		8		4
	1 477		1 903	144		131	2 881		2 322		(144	)	(286	)	4 358		4 070
Expenses
Purchases of crude oil and products	60		14	—		—	1 590		1 481		(132	)	(262	)	1 518		1 233
Operating, selling and general (note 3)	656		467	32		27	176		143		28		17		892		654
Energy marketing and trading activities	—		—	—		—	611		377		(1	)	(23	)	610		354
Transportation and other costs	32		36	9		5	8		6		—		—		49		47
Depreciation, depletion and amortization	108		92	44		38	40		30		12		6		204		166
Accretion of asset retirement obligations	10		7	1		2	1		—		—		—		12		9
Exploration	—		—	37		31	—		—		—		—		37		31
Royalties (note 11)	99		278	32		21	—		—		—		—		131		299
Taxes other than income taxes	20		20	3		2	140		120		1		—		164		142
Loss on disposal of assets	—		—	—		—	1		1		—		—		1		1
Project start-up costs	21		3	—		—	2		2		—		—		23		5
Financing income	—		—	—		—	—		—		(74	)	(20	)	(74	)	(20	)
	1 006		917	158		126	2 569		2 160		(166	)	(282	)	3 567		2 921
Earnings (loss) before income taxes	471		986	(14	)	5	312		162		22		(4	)	791		1 149
Income taxes	(52	)	114	10		55	(106	)	(46	)	(2	)	(54	)	(150	)	69
Net earnings (loss)	419		1 100	(4	)	60	206		116		20		(58	)	641		1 218

For more information about Suncor Energy, visit our website www.suncor.com

Suncor Energy Inc.   021

2007 Second Quarter           

Schedules of segmented data (continued)

(unaudited)

																	Second quarter
									Refining and
									Marketing				Corporate and
	Oil Sands				Natural Gas				(note 3)				Eliminations				Total
($ millions)	2007		2006		2007		2006		2007		2006		2007		2006		2007		2006
CASH FLOW BEFORE FINANCING ACTIVITIES
Cash flow from (used in) operating activities:
Cash flow from (used in) operations
Net earnings (loss)	419		1 100		(4	)	60		206		116		20		(58	)	641		1 218
Exploration expenses	—		—		37		20		—		—		—		—		37		20
Non-cash items included in earnings
Depreciation, depletion and amortization	108		92		44		38		40		30		12		6		204		166
Future income taxes	39		(97	)	(8	)	(54	)	46		32		(10	)	58		67		(61	)
Loss on disposal of assets	—		—		—		—		1		1		—		—		1		1
Stock-based compensation expense	10		5		1		—		3		3		6		2		20		10
Other	7		22		1		2		(2	)	2		(82	)	(55	)	(76	)	(29	)
Increase (decrease) in deferred credits and other	(7	)	(6	)	(1	)	—		(2	)	—		—		1		(10	)	(5	)
Total cash flow from (used in) operations	576		1 116		70		66		292		184		(54	)	(46	)	884		1 320
Decrease (increase) in operating working capital	437		(22	)	(2	)	(59	)	25		19		(44	)	141		416		79
Total cash flow from (used in) operating activities	1 013		1 094		68		7		317		203		(98	)	95		1 300		1 399
Cash from (used in) investing activities:
Capital and exploration expenditures	(1 118	)	(555	)	(83	)	(127	)	(66	)	(173	)	(14	)	(10	)	(1 281	)	(865	)
Deferred maintenance shutdown expenditures	(56	)	—		—		—		(11	)	(10	)	—		—		(67	)	(10	)
Deferred outlays and other investments	1		(2	)	—		—		(2	)	5		1		9		—		12
Proceeds from disposals	—		—		—		1		1		3		—		—		1		4
Proceeds from property loss	—		29		—		—		—		—		—		—		—		29
Decrease (increase) in investing working capital	17		66		—		—		8		(33	)	—		—		25		33
Total cash (used in) investing activities	(1 156	)	(462	)	(83	)	(126	)	(70	)	(208	)	(13	)	(1	)	(1 322	)	(797	)
Net cash surplus (deficiency) before financing activities	(143	)	632		(15	)	(119	)	247		(5	)	(111	)	94		(22	)	602

Inquiries John Rogers (403) 269-8670

022Suncor Energy Inc.

2007 Second Quarter

Schedules of segmented data (continued)

(unaudited)

															Six months ended June 30
									Refining and
									Marketing				Corporate and
	Oil Sands				Natural Gas				(note 3)				Eliminations				Total
($ millions)	2007		2006		2007		2006		2007		2006		2007		2006		2007		2006
EARNINGS
Revenues
Operating revenues	2 777		3 192		280		294		4 037		3 416		3		2		7 097		6 904
Energy marketing and trading activities	—		—		—		—		1 200		657		(2	)	(23	)	1 198		634
Net insurance proceeds	—		385		—		—		—		—		—		—		—		385
Intersegment revenues	294		446		8		17		—		—		(302	)	(463	)	—		—
Interest	—		—		—		—		4		1		10		4		14		5
	3 071		4 023		288		311		5 241		4 074		(291	)	(480	)	8 309		7 928
Expenses
Purchases of crude oil and products	69		17		—		—		2 869		2 622		(282	)	(455	)	2 656		2 184
Operating, selling and general (note 3)	1 268		993		70		53		351		317		43		63		1 732		1 426
Energy marketing and trading activities	—		—		—		—		1 184		643		(3	)	(27	)	1 181		616
Transportation and other costs	64		73		16		11		15		14		—		—		95		98
Depreciation, depletion and amortization	208		185		85		72		79		54		22		13		394		324
Accretion of asset retirement obligations	20		14		3		3		1		—		—		—		24		17
Exploration	13		22		56		40		—		—		—		—		69		62
Royalties (note 11)	256		563		64		65		—		—		—		—		320		628
Taxes other than income taxes	41		41		3		2		277		239		1		—		322		282
Loss (gain) on disposal of assets	—		—		—		(4	)	1		1		—		—		1		(3	)
Project start-up costs	23		24		—		—		3		2		—		—		26		26
Financing income	—		—		—		—		—		—		(85	)	(13	)	(85	)	(13	)
	1 962		1 932		297		242		4 780		3 892		(304	)	(419	)	6 735		5 647
Earnings (loss) before income taxes	1 109		2 091		(9	)	69		461		182		13		(61	)	1 574		2 281
Income taxes	(237	)	(284	)	9		31		(156	)	(55	)	2		(42	)	(382	)	(350	)
Net earnings (loss)	872		1 807		—		100		305		127		15		(103	)	1 192		1 931
As at June 30
TOTAL ASSETS	15 508		12 649		1 717		1 390		4 202		3 996		(197	)	(1 497	)	21 230		16 538

For more information about Suncor Energy, visit our website www.suncor.com

Suncor Energy Inc.   023

2007 Second Quarter           

Schedules of segmented data (continued)

(unaudited)

															Six months ended June 30
									Refining and
									Marketing				Corporate and
	Oil Sands				Natural Gas				(note 3)				Eliminations				Total
($ millions)	2007		2006		2007		2006		2007		2006		2007		2006		2007		2006
CASH FLOW BEFORE FINANCING ACTIVITIES
Cash flow from (used in) operating activities:
Cash flow from (used in) operations
Net earnings (loss)	872		1 807		—		100		305		127		15		(103	)	1 192		1 931
Exploration expenses	—		—		52		25		—		—		—		—		52		25
Non-cash items included in earnings
Depreciation, depletion and amortization	208		185		85		72		79		54		22		13		394		324
Future income taxes	81		297		(8	)	(31	)	73		43		(9	)	50		137		359
Loss (gain) on disposal of assets	—		—		—		(4	)	1		1		—		—		1		(3	)
Stock-based compensation expense	18		9		2		1		8		5		10		4		38		19
Other	(13	)	34		4		2		—		10		(115	)	(54	)	(124	)	(8	)
Increase (decrease) in deferred credits and other	(12	)	(11	)	(1	)	—		(3	)	(3	)	—		1		(16	)	(13	)
Total cash flow from (used in) operations	1 154		2 321		134		165		463		237		(77	)	(89	)	1 674		2 634
Decrease (increase) in operating working capital	450		(222	)	11		(41	)	(11	)	(44	)	(119	)	(212	)	331		(519	)
Total cash flow from (used in) operating activities	1 604		2 099		145		124		452		193		(196	)	(301	)	2 005		2 115
Cash from (used in) investing activities:
Capital and exploration expenditures	(1 911	)	(962	)	(358	)	(242	)	(123	)	(399	)	(20	)	(14	)	(2 412	)	(1 617)
Deferred maintenance shutdown expenditures	(56	)	—		(1	)	—		(12	)	(52	)	—		—		(69	)	(52	)
Deferred outlays and other investments	1		(2	)	—		—		(2	)	5		—		7		(1	)	10
Proceeds from disposals	—		—		—		14		1		3		—		—		1		17
Proceeds from property loss	—		29		—		—		—		—		—		—		—		29
Decrease (increase) in investing working capital	90		183		—		—		(31	)	(24	)	—		—		59		159
Total cash (used in) investing activities	(1 876)		(752	)	(359	)	(228	)	(167	)	(467	)	(20	)	(7	)	(2 422	)	(1 454)
Net cash surplus (deficiency) before financing activities	(272	)	1 347		(214	)	(104	)	285		(274	)	(216	)	(308	)	(417	)	661

Inquiries John Rogers (403) 269-8670

024Suncor Energy Inc.

2007 Second Quarter

Notes to the consolidated financial statements
(unaudited)

1. ACCOUNTING POLICIES

These interim consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles and follow the same accounting policies and methods of computation as, and should be read in conjunction with, the most recent annual financial statements, except for the accounting policy changes as described in note 2, Changes in Accounting Policies and note 3, Change in Segmented Disclosures.

In the opinion of management, these interim consolidated financial statements contain all adjustments of a normal and recurring nature necessary to present fairly Suncor Energy Inc.’s (Suncor) financial position at June 30, 2007 and the results of its operations and cash flows for the three and six month periods ended June 30, 2007 and 2006.

Certain prior period comparative figures have been reclassified to conform to the current period presentation.

2. CHANGES IN ACCOUNTING POLICIES

Financial Instruments

On January 1, 2007 the company adopted CICA Handbook Section 3855 “Financial Instruments, Recognition and Measurement”, Section 1530 “Comprehensive Income” and Section 3865 “Hedging”. These sections establish the accounting and reporting standards for financial instruments and hedging activities, and require the initial recognition of financial instruments at fair value on the balance sheet. The comparative interim consolidated financial statements have not been restated, except for the presentation of the cumulative foreign currency translation adjustment.

Transaction costs and the related cash flow impacts are included in the fair value assessments of each financial asset and financial liability instrument.

Generally, all derivatives, whether designated in hedging relationships or not, excluding those considered as normal purchases and normal sales, are required to be recorded on the balance sheet at fair value. If the derivative is designated as a fair value hedge each period, changes in the fair value of the derivative and changes in the fair value of the hedged item attributable to the hedged risk are recognized in the Consolidated Statements of Earnings. If the derivative is designated as a cash flow hedge each period, the effective portions of the changes in fair value of the derivative are initially recorded in other comprehensive income and are recognized in the Consolidated Statements of Earnings when the hedged item is recognized. Ineffective portions of changes in the fair value of hedging instruments are recognized in the Consolidated Statements of Earnings immediately for both fair value and cash flow hedges.

Gains or losses arising from hedging activities, including the ineffective portion, are reported in the same Consolidated Statement of Earnings caption as the hedged item. The determination of hedge effectiveness and the measurement of hedge ineffectiveness for cash flow hedges are based on internally derived valuations. The company uses these valuations to estimate the fair values of the underlying physical commodity contracts.

In addition to containing the effective portions of the gains/losses on our cash flow hedges, the accumulated other comprehensive income account will also contain the cumulative foreign currency translation adjustment of our foreign operations.

Upon implementation and initial measurement under the new standards at January 1, 2007, the following adjustments were recorded to the balance sheet:

Financial Assets	$42 million
Financial Liabilities	$29 million
Retained Earnings	$5 million
Accumulated Other Comprehensive Loss	$63 million

The comparative interim consolidated financial statements have not been restated, except for the presentation of the cumulative foreign currency translation adjustment of $71 million.

Additional disclosure requirements for financial instruments have been approved by the CICA, and will be required disclosure for the company beginning January 1, 2008.

See Note 4 for a summary of financial instrument disclosures at June 30, 2007.

For more information about Suncor Energy, visit our website www.suncor.com

Suncor Energy Inc.   025

2007 Second Quarter           

3. CHANGE IN SEGMENTED DISCLOSURES

Consistent with the company’s organizational restructuring during the first quarter of 2007, results from our Canadian and U.S. downstream refining and marketing operations have been combined into a single business segment – Refining & Marketing. Comparative figures have been reclassified to reflect the combination of the previously disclosed Energy Marketing & Refining –Canada (EM&R) and Refining & Marketing – U.S.A. (R&M) segments. The results of company-wide energy marketing and trading activities will continue to be included in this segment. The financial results relating to the sales of Oil Sands and Natural Gas production will continue to be reported in their respective business segments. There was no impact to consolidated net earnings as a result of the restructuring.

Effective January 1, 2007, the company began allocating stock-based compensation expense to each of the reportable business segments. Comparative figures have been reclassified to reflect the allocation of stock-based compensation. There was no impact to consolidated net earnings as a result of the allocation.

4. FINANCIAL INSTRUMENTS

Balance Sheet Financial Instruments

The company’s financial instruments recognized in the Consolidated Balance Sheet consist of cash and cash equivalents, accounts receivable, derivative contracts, substantially all current liabilities (except for the current portions of asset retirement and pension obligations), and long-term debt. Unless otherwise noted, carrying values reflect the current fair value of the company’s financial instruments.

The estimated fair values of recognized financial instruments have been determined based on the company’s assessment of available market information and appropriate valuation methodologies, or through comparisons to similar debt instruments; however, these estimates may not necessarily be indicative of the amounts that could be realized or settled in a current market transaction.

The company’s fixed-term debt is accounted for under the amortized cost method. Upon initial recognition, the cost of the debt is its fair value, adjusted for any associated transaction costs. We do not recognize gains or losses arising from changes in the fair value of this debt until the gains or losses are realized. At June 30, 2007, the carrying value of our fixed-term debt was $3.1 billion (fair value – $3.1 billion).

Hedges

Fair Value Hedges

The company periodically enters into derivative financial instrument contracts such as interest rate swaps as part of its risk management strategy to minimize exposure to changes in cash flows of interest-bearing debt. At June 30, 2007, the company had interest rate derivatives classified as fair value hedges outstanding for up to five years relating to fixed-rate debt.

There was no ineffectiveness recognized on derivative contracts designated as fair value hedges during the three and six month periods ended June 30, 2007.

Cash Flow Hedges

Suncor operates in a global industry where the market price of its petroleum and natural gas products is determined based on floating benchmark indices denominated in U.S. dollars. The company periodically enters into derivative financial instrument contracts such as forwards, futures, swaps, options and costless collars to hedge against the potential adverse impact of changing market prices due to changes in the underlying indices. Specifically, the company manages crude sales price variability by entering into West Texas Intermediate (WTI) derivative transactions, and manages variability in market interest rates during periods of debt issuance through the use of interest rate swap transactions.

At June 30, 2007, the company had hedged a portion of its forecasted Canadian and U.S. dollar denominated cash flows subject to U.S. dollar WTI commodity risk for 2007 and 2008, as well as cash flows related to natural gas production and refinery operations in 2007 and 2008, and a portion of its Euro currency exposure created by the anticipated purchase of equipment payable in Euros in 2007.

The earnings impact associated with realized and unrealized hedge ineffectiveness on derivative contracts designated as cash flow hedges during the three month period ended June 30, 2007 was a loss of $8 million, net of income taxes of $2 million. During the six month period ended June 30, 2007, the earnings impact was a loss of $6 million, net of income taxes of $2 million.

Inquiries John Rogers (403) 269-8670

026Suncor Energy Inc.

2007 Second Quarter

As at June 30, 2007, assets increased by $8 million and liabilities increased by $2 million as a result of recording derivative instruments at fair value in accordance with the new standards.

The fair value of hedging derivative financial instruments as recorded, is the estimated amount, based on broker quotes and/or internal valuation models, that the company would receive (pay) to terminate the contracts. Such amounts were as follows:

	June 30	December 31
($ millions)	2007	2006
Revenue hedge swaps and collars	6	22
Interest rate and cross-currency interest rate swaps	5	16
Specific cash flow hedges of individual transactions	2	(4	)
Fair value of outstanding hedging derivative financial instruments	13	34

Accumulated Other Comprehensive Income (OCI)

A reconciliation of changes in accumulated OCI attributable to derivative hedging activities for the six month period ending June 30, 2007 is as follows:

($ millions)	2007
OCI attributable to derivatives and hedging activities, recorded upon initial adoption on January 1, 2007, net of income taxes of $5	8
Current period net changes arising from cash flow hedges, net of income taxes of $4	16
Net unrealized hedging gains at the beginning of the period reclassified to earnings during the period, net of income taxes of $1	(2	)
OCI attributable to derivatives and hedging activities, end of period, net of income taxes of $8	22

Energy Marketing and Trading Activities

In addition to the financial derivatives used for hedging activities, the company uses physical and financial energy contracts, including swaps, forwards and options, to earn trading and marketing revenues. These energy trading activities are accounted for using the mark-to-market method and, as such, all financial instruments are recorded at fair value at each balance sheet date. Physical energy marketing contracts involve activities intended to enhance prices and satisfy physical deliveries to customers. The results of these activities are reported as revenue and as energy trading and marketing expenses in the Consolidated Statements of Earnings. The net pretax earnings (loss) for the three and six month periods ended June 30 were as follows:

Net Pretax Earnings (Loss)

	Second quarter			Six months ended June 30
($ millions)	2007		2006	2007		2006
Physical energy contracts trading activity	19		6	21		15
Financial energy contracts trading activity	(1	)	—	(5	)	(1	)
General and administrative costs	—		—	(1	)	(1	)
Total	18		6	15		13

The fair value of unsettled (unrealized) financial energy trading assets and liabilities are as follows:

	June 30		December 31
($ millions)	2007		2006
Energy trading assets	1		16
Energy trading liabilities	11		13
Net energy trading assets (liabilities)	(10	)	3

For more information about Suncor Energy visit our website www.suncor.com

Suncor Energy Inc.  027

2007 Second Quarter        

Change in Fair Value of Net Assets

($ millions)	2007
Fair value of contracts outstanding at December 31, 2006	3
Fair value of contracts realized during the period	(8	)
Fair value of contracts entered into during the period	(7	)
Changes in values attributable to market price and other market changes	2
Fair value of contracts outstanding at June 30, 2007	(10	)

The source of the valuations of the above contracts is based on actively quoted prices and/or internal model valuations.

5. FINANCING INCOME

	Second quarter				Six months ended June 30
($ millions)	2007		2006		2007		2006
Interest expense on debt	42		38		80		77
Capitalized interest	(42	)	(31	)	(80	)	(64	)
Net interest expense	—		7		—		13
Foreign exchange gain on long-term debt	(95	)	(52	)	(107	)	(51	)
Other foreign exchange loss	21		25		22		25
Total financing income	(74	)	(20	)	(85	)	(13	)

6. RECONCILIATION OF BASIC AND DILUTED EARNINGS PER COMMON SHARE

	Second quarter		Six months ended June 30
($ millions)	2007	2006	2007	2006
Net earnings	641	1 218	1 192	1 931
(millions of common shares)
Weighted-average number of common shares	461	459	460	459
Dilutive securities:
Options issued under stock-based compensation plans	11	12	10	12
Weighted-average number of diluted common shares	472	471	470	471
(dollars per common share)
Basic earnings per share (a)	1.39	2.65	2.59	4.21
Diluted earnings per share (b)	1.36	2.59	2.53	4.10

Note: An option will have a dilutive effect under the treasury stock method only when the average market price of the common stock during the period exceeds the exercise price of the option.

(a)Basic earnings per share is net earnings divided by the weighted-average number of common shares.

(b)Diluted earnings per share is net earnings, divided by the weighted-average number of diluted common shares.

Inquiries John Rogers (403) 269-8670

028Suncor Energy Inc.

2007 Second Quarter

7. STOCK-BASED COMPENSATION

A common share option gives the holder the right, but not the obligation, to purchase common shares at a predetermined price over a specified period of time.

After the date of grant, employees that hold options must earn the right to exercise them. This is done by the employee fulfilling a time requirement for service to the company, and with respect to certain options, is subject to accelerated vesting should the company meet predetermined performance criteria. Once this right has been earned, these options are considered vested.

The predetermined price at which an option can be exercised is equal to or greater than the market price of the common shares on the date the option is granted.

A performance share unit is an award entitling employees to receive a payment ranging from zero to a maximum of 150%

of the value of a common share contingent upon Suncor’s shareholder return over a three year period relative to a peer

group of companies.

(a) Stock Option Plans

Under the SunShare long-term incentive plan, the company granted 448,000 options to new employees in the second quarter of 2007, for a total of 760,000 options granted in the six months ended June 30, 2007 (338,000 options granted during the second quarter of 2006; 598,000 options granted in the six months ended June 30, 2006).

On April 30, 2008, 50% of the outstanding, unvested SunShare options will vest. The remaining 50% of the outstanding, unvested SunShare options may vest on April 30, 2008 if the final predetermined performance criterion is met. If the performance criteria is not met, the unvested options that have not previously expired or been cancelled, will automatically vest on January 1, 2012. Management believes that it is highly likely the final performance criterion will be met and that all unvested SunShare options at April 30, 2008 will therefore vest. Stock-based compensation expense has been recorded to reflect this assumption.

Under the company’s other plans, 18,000 options were granted in the second quarter of 2007, for a total of 1,633,000 options granted in the six months ended June 30, 2007 (62,000 options granted during the second quarter of 2006; 1,571,000 granted in the six months ended June 30, 2006).

The fair values of all common share options granted during the period are estimated as at the grant date using the Black-Scholes option-pricing model. The weighted-average fair values of the options granted during the various periods and the weighted-average assumptions used in their determination are as noted below:

	Second quarter						Six months ended June 30
	2007			2006			2007			2006
Quarterly dividend per share	$	0.10		$	0.08		$	0.10	*	$	0.08	**
Risk-free interest rate	4.18		%	4.25		%	4.10		%	4.11		%
Expected life	3 years			5 years			5 years			6 years
Expected volatility	31		%	29		%	29		%	29		%
Weighted-average fair value per option	$	22.92		$	28.32		$	27.74		$	31.57

*In 2007, quarterly dividends of $0.08 per share were paid in the first quarter and $0.10 per share were paid in the second quarter.

**In 2006, quarterly dividends of $0.06 per share were paid in the first quarter and $0.08 per share were paid in the second quarter.

Stock-based compensation expense recognized in the second quarter of 2007 related to stock options plans was $20 million (2006 – $10 million). For the six months ended June 30, 2007 stock-based compensation expense recognized was $38 million
(2006 – $19 million).

For more information about Suncor Energy visit our website www.suncor.com

Suncor Energy Inc.  029

2007 Second Quarter        

Common share options granted prior to January 1, 2003 are not recognized as compensation expense in the Consolidated Statements of Earnings. The company’s reported net earnings attributable to common shareholders and earnings per share prepared in accordance with the fair value method of accounting for stock-based compensation would have been reduced for all common share options granted prior to 2003 to the pro forma amounts stated below:

	Second quarter		Six months ended June 30
($ millions, except per share amounts)	2007	2006	2007	2006
Net earnings – as reported	641	1 218	1 192	1 931
Less: compensation cost under the fair value method for pre-2003 options	2	3	5	5
Pro forma net earnings	639	1 215	1 187	1 926
Basic earnings per share
As reported	1.39	2.65	2.59	4.21
Pro forma	1.39	2.65	2.58	4.20
Diluted earnings per share
As reported	1.36	2.59	2.53	4.10
Pro forma	1.35	2.58	2.52	4.09

(b) Performance Share Units (PSUs)

In the second quarter of 2007 the company issued 15,000 (2006 – 2,000) PSUs. For the six months ended June 30, 2007, the company issued 414,000 PSUs (2006 – 392,000). Expense recognized in the second quarter of 2007 was $17 million (2006 – $11 million). Expense recognized for the six months ended June 30, 2007 was $36 million (2006 – $35 million).

8. EMPLOYEE FUTURE BENEFITS LIABILITY

The company’s pension plans and other post-retirement benefits programs are described in note 8 of the company’s 2006 Annual Report. The following is the status of the net periodic benefit cost for the three and six months ended June 30.

	Pension Benefits
	Second quarter				Six months ended June 30
($ millions)	2007		2006		2007		2006
Current service costs	13		11		26		22
Interest costs	11		10		22		20
Expected return on plan assets	(10	)	(8	)	(21	)	(16	)
Amortization of net actuarial loss	6		7		12		14
Net periodic benefit cost	20		20		39		40

	Other Post-retirement Benefits
	Second quarter		Six months ended June 30
($ millions)	2007	2006	2007	2006
Current service costs	1	2	2	3
Interest costs	2	2	4	4
Amortization of net actuarial loss	1	—	1	—
Net periodic benefit cost	4	4	7	7

9. SUPPLEMENTAL INFORMATION

	Second quarter		Six months ended June 30
($ millions)	2007	2006	2007	2006
Interest paid	22	22	77	75
Income taxes paid	38	6	55	17

Inquiries John Rogers (403) 269-8670

030Suncor Energy Inc.

2007 Second Quarter

Revenue Hedges

Strategic Crude Oil at June 30, 2007

	Quantity	Average Price	Revenue Hedged	Hedge
	(bpd)	(US$/bbl) (a)	(Cdn$ millions) (b)	Period (c)
Costless collars	60 000	51.64 – 93.26	606 – 1 095	2007
Costless collars	10 000	59.85 – 101.06	233 – 393	2008

Natural Gas at June 30, 2007

	Quantity	Average Price	Revenue Hedged	Hedge
	(GJ/day)	(Cdn$/GJ)	(Cdn$ millions)	Period (c)
Swaps	4 000	6.11	4	2007
Costless collars	10 000	7.00 – 7.90	6 – 7	2007	(d)
Costless collars	5 000	7.00 – 8.05	4 – 5	2007	(e)
Costless collars	5 000	7.25 – 8.92	4 – 5	2007	(e)

Foreign Currency Hedges at June 30, 2007

	Notional	Average	Dollars Hedged	Hedge
	(Euro millions)	Forward Rate	(Cdn$ millions)	Period
Euro/Cdn forwards	19	1.44	27	2007	(f)

(a)    Average price for crude oil costless collars is US$ WTI per barrel at Cushing, Oklahoma.

(b)    The revenue and margin hedged is translated to Cdn$ at the June 30, 2007 exchange rate and is subject to change as the Cdn$/US$ exchange rate fluctuates during the hedge period.

(c)    Original hedge term is for the full year unless otherwise noted.

(d)    For the period August to October 2007, inclusive.

(e)    For the period July to October 2007, inclusive.

(f)    For the period July to November 2007.

10. INCOME TAXES

During the second quarter of 2007 the federal government substantively enacted a 0.5% reduction to its federal corporate tax rates. Accordingly, the company recognized a reduction in future income tax expense of $67 million related to the revaluation of its opening future income tax balances.

During the second quarter of 2006 the federal government substantively enacted a 3.1% reduction to its federal corporate tax rates. Accordingly, the company recognized a reduction in future income tax expense of $292 million related to the revaluation of its opening future income tax balances.

During the second quarter of 2006 the provincial government of Alberta substantively enacted a 1.5% reduction to its provincial corporate tax rates. Accordingly, the company recognized a reduction in future income tax expense of $127 million related to the revaluation of its opening future income tax balances.

11. ROYALTY ESTIMATE MEASUREMENT UNCERTAINTY

Alberta Crown royalties in effect for each Oil Sands project require payments to the Government of Alberta based on annual gross revenues less related transportation costs (R) less allowable costs (C), including the deduction of certain capital expenditures (the 25% R-C royalty), subject to a minimum payment of 1% of R.

Oil Sands royalties payable in 2007 are highly sensitive to, among other factors, changes in crude oil and natural gas pricing, foreign exchange rates and total capital and operating costs for each project. Oil Sands pretax royalty estimate was $256 million ($186 million after tax) for the first six months of 2007 compared to $563 million ($373 million after tax) for the first six months of 2006. We estimate 2007 annualized Crown Royalties to be approximately $590 million ($430 million after tax) based on six

For more information about Suncor Energy visit our website www.suncor.com

Suncor Energy Inc.  031

2007 Second Quarter        

months of actual results together with 2007 forward crude oil pricing of US$71.08/bbl as at June 30, 2007, current forecasts of production, capital and operating costs for the remainder of 2007, and a Canadian/U.S. foreign exchange rate of $0.94. Accordingly, actual results will differ, and these differences may be material. The balance of the consolidated royalty expense is in respect of natural gas royalties of $64 million ($44 million after tax).

12. LONG-TERM DEBT AND CREDIT FACILITIES

During the first quarter, the company repaid maturing 6.80% $250 million Medium Term Notes using commercial paper. Also during the first quarter, the company issued 5.39% Medium Term Notes with a principal amount of $600 million under an outstanding $2 billion debt shelf prospectus. These notes bear interest, which is paid semi-annually, and mature on March 26, 2037. The net proceeds received were used to repay commercial paper.

During the second quarter, the company issued 6.50% Notes with a principal amount of US$750 million under an outstanding US$2 billion debt shelf prospectus. These notes bear interest, which is paid semi-annually, and mature on June 15, 2038. The net proceeds received were used to repay commercial paper and support our ongoing capital spending program.

Also during the second quarter, our $300 million bilateral credit facility was amended and extended by one year to 2008 and the credit limit was increased by $30 million to $330 million total funds available. Our $2 billion syndicated credit facility was renegotiated and extended by one year to have a five year term expiring in June 2012 and the company’s commercial paper program limit was increased by $300 million from $1.2 billion to $1.5 billion. Additionally, a $15 million revolving demand credit facility was renegotiated and increased by $15 million to $30 million.

	June 30		December 31
($ millions)	2007		2006
Fixed-term debt, redeemable at the option of the Company
6.50% Notes, denominated in U.S. dollars, due in 2038 (US$750)	798		—
5.95% Notes, denominated in U.S. dollars, due in 2034 (US$500)	532		583
7.15% Notes, denominated in U.S. dollars, due in 2032 (US$500)	532		583
5.39% Series 4 Medium Term Notes, due in 2037	600		—
6.70% Series 2 Medium Term Notes, due in 2011	500		500
6.10% Medium Term Notes, due in 2007	150		150
6.80% Medium Term Notes, due in 2007	—		250
	3 112		2 066
Revolving-term debt, with interest at variable rates
Commercial paper	42		280
Total unsecured long-term debt	3 154		2 346
Secured long-term debt	1		1
Capital leases	37		38
Deferred financing costs	(40	)	(22	)
Total long-term debt	3 152		2 363

At June 30, 2007, undrawn credit facilities were approximately $2,047 million, as follows:

($ millions)	2007
Facility that is fully revolving for 364 days, has a term period of one year and expires in 2008	330
Facility that is fully revolving for a period of five years and expires in 2012	2 000
Facilities that can be terminated at any time at the option of the lenders	45
Total available credit facilities	2 375
Credit facilities supporting outstanding commercial paper	42
Credit facilities supporting standby letters of credit	286
Total undrawn credit facilities	2 047

Inquiries John Rogers (403) 269-8670

032Suncor Energy Inc.

2007 Second Quarter

Highlights

(unaudited)

	2007	2006
Cash Flow from Operations
(dollars per common share – basic)
For the three months ended June 30
Cash flow from operations (1)	1.92	2.88
For the six months ended June 30
Cash flow from operations (1)	3.64	5.74
Ratios
For the twelve months ended June 30
Return on capital employed (%) (2)	26.8	43.9
Return on capital employed (%) (3)	19.7	32.0
Net debt to cash flow from operations (times) (4)	0.6	0.5
Interest coverage on long-term debt (times)
Net earnings (5)	20.3	24.8
Cash flow from operations (6)	25.2	28.8
As at June 30
Debt to debt plus shareholders’ equity (%) (7)	23.9	23.0
Common Share Information
As at June 30
Share price at end of trading
Toronto Stock Exchange – Cdn$	95.96	90.34
New York Stock Exchange – US$	89.92	81.01
Common share options outstanding (thousands)	20 631	19 610
For the six months ended June 30
Average number outstanding, weighted monthly (thousands)	460 422	458 596

Refer to the Quarterly Operating Summary for a discussion of financial measures not prepared in accordance with generally accepted accounting principles (GAAP).

(1)    Cash flow from operations for the period; divided by the weighted average number of common shares outstanding during the period.

(2)    For the twelve month period ended; net earnings (2007 – $2,201 million; 2006 – $2,883 million) adjusted for after-tax financing expenses (2007 – loss of $31 million; 2006 – income of $56 million) divided by average capital employed (2007 – $8,198 million; 2006 – $6,573 million). Average capital employed is the sum of shareholders’ equity and short-term debt plus long-term debt less cash and cash equivalents, at the beginning and end of the year, divided by two, less capitalized costs related to major projects in progress (as applicable). Return on capital employed (ROCE) for Suncor operating segments as presented in the Quarterly Operating Summary is calculated in a manner consistent with consolidated ROCE. For a detailed reconciliation of ROCE prepared on an annual basis, see page 58 of Suncor’s 2006 Annual Report to Shareholders.

(3)    If capital employed were to include capitalized costs related to major projects in progress (average capital employed including major projects in progress: 2007 – $11,157 million; 2006 – $8,997 million), the return on capital employed would be as stated on this line.

(4)    Short-term debt plus long-term debt less cash and cash equivalents, divided by cash flow from operations for the twelve month period then ended.

(5)    Net earnings plus income taxes and interest expense, divided by the sum of interest expense and capitalized interest.

(6)    Cash flow from operations plus current income taxes and interest expense; divided by the sum of interest expense and capitalized interest.

(7)    Short-term debt plus long-term debt; divided by the sum of short-term debt, long-term debt and shareholders’ equity.

For more information about Suncor Energy visit our website www.suncor.com

Suncor Energy Inc.  033

2007 Second Quarter        

Quarterly operating summary

(unaudited)

	For the quarter ended					Six months ended		Total year
	June 30	Mar 31	Dec 31	Sept 30	June 30	June 30	June 30	Dec 31
	2007	2007	2006	2006	2006	2007	2006	2006
OIL SANDS
Production (1),(a)
Total production	202.3	248.2	266.4	242.8	267.3	225.1	266.0	260.0
Firebag	36.2	35.3	35.1	37.2	35.0	35.8	31.3	33.7
Sales (a)
Light sweet crude oil	100.0	105.5	113.7	84.9	124.7	102.8	121.9	110.5
Diesel	20.3	29.5	24.0	20.7	32.9	24.9	34.1	28.2
Light sour crude oil	84.2	112.7	126.8	125.8	99.2	98.4	110.0	118.2
Bitumen	3.8	6.8	9.7	6.6	8.5	5.3	4.3	6.2
Total sales	208.3	254.5	274.2	238.0	265.3	231.4	270.3	263.1
Average sales price (2),(b)
Light sweet crude oil	75.64	68.63	64.51	78.11	78.27	72.07	73.76	71.98
Other (diesel, light sour crude oil and bitumen)	66.74	63.62	57.91	68.60	72.75	64.93	67.80	65.17
Total	71.01	65.70	60.65	71.99	75.34	68.10	70.49	68.03
Total *	71.01	65.61	60.65	71.99	75.34	68.06	70.49	68.03
Cash operating costs and Total operating costs – Total operations (c)
Cash costs	28.40	21.75	22.65	21.00	15.65	24.75	15.60	18.70
Natural gas	4.20	4.50	3.00	2.60	2.55	4.35	3.00	2.90
Imported bitumen	0.10	0.05	—	0.10	0.10	0.10	0.05	0.10
Cash operating costs (3)	32.70	26.30	25.65	23.70	18.30	29.20	18.65	21.70
Project start-up costs	1.15	0.10	0.25	0.35	0.10	0.55	0.50	0.40
Total cash operating costs (4)	33.85	26.40	25.90	24.05	18.40	29.75	19.15	22.10
Depreciation, depletion and amortization	5.85	4.45	4.25	4.30	3.80	5.10	3.85	4.05
Total operating costs (5)	39.70	30.85	30.15	28.35	22.20	34.85	23.00	26.15
Cash operating costs and Total operating costs – In-situ bitumen production only (c)
Cash costs	10.60	11.05	8.05	5.55	8.50	10.80	7.25	8.95
Natural gas	10.60	11.05	9.90	7.60	8.15	10.80	7.95	8.35
Cash operating costs (6)	21.20	22.10	17.95	13.15	16.65	21.60	15.20	17.30
Firebag start-up costs	—	—	—	—	—	—	3.70	1.70
Total cash operating costs (7)	21.20	22.10	17.95	13.15	16.65	21.60	18.90	19.00
Depreciation, depletion and amortization	5.75	5.35	6.20	5.55	3.75	5.55	5.10	5.55
Total operating costs (8)	26.95	27.45	24.15	18.70	20.40	27.15	24.00	24.55
(for the period ended)
Capital employed (i)	5 016	5 134	5 015	5 491	5 486
(for the twelve months ended)
Return on capital employed (j)	34.4	47.6	53.5	57.7	53.6
Return on capital employed (j)****	23.6	34.7	40.1	43.6	40.2

Inquiries John Rogers (403) 269-8670

034Suncor Energy Inc.

2007 Second Quarter

Quarterly operating summary (continued)

(unaudited)

	For the quarter ended					Six months ended		Total year
	June 30	Mar 31	Dec 31	Sept 30	June 30	June 30	June 30	Dec 31
	2007	2007	2006	2006	2006	2007	2006	2006
NATURAL GAS
Gross production **
Natural gas (d)	191	191	192	191	189	191	193	191
Natural gas liquids (a)	2.3	2.4	2.1	2.1	2.6	2.4	2.5	2.3
Crude oil (a)	0.7	0.7	0.5	0.7	0.9	0.7	0.9	0.7
Total gross production (e)	34.9	34.9	34.7	34.6	35.1	34.9	35.5	34.8
Total gross production (f)	209	209	208	208	211	209	213	209
Average sales price (2)
Natural gas (g)	6.85	7.01	6.55	6.33	6.38	6.93	7.73	7.15
Natural gas (g) *	6.83	7.14	6.40	6.13	6.22	6.98	7.51	6.95
Natural gas liquids (b)	47.41	54.12	44.20	53.11	60.14	50.79	56.19	44.96
Crude oil – conventional (b)	63.71	65.49	51.20	84.95	74.18	64.81	67.81	74.83
Net wells drilled
Conventional – Exploratory ***	3	4	4	1	1	7	6	11
– Development	1	8	6	6	2	9	6	18
	4	12	10	7	3	16	12	29
(for the period ended)
Capital employed (i)	1 079	1 063	857	775	767
(for the twelve months ended)
Return on capital employed (j)	0.6	8.5	14.9	27.7	30.4
REFINING AND MARKETING
Refined product sales (h)
Transportation fuels
Gasoline
Retail	5.2	5.4	5.5	5.3	5.3	5.3	5.2	5.3
Other	11.7	11.8	11.0	11.4	11.9	11.8	10.0	10.6
Distillate	10.5	10.3	8.8	8.5	9.0	10.3	8.4	8.5
Total transportation fuel sales	27.4	27.5	25.3	25.2	26.2	27.4	23.6	24.4
Petrochemicals	1.3	0.8	0.4	1.0	0.9	1.1	1.1	0.9
Asphalt	1.8	1.3	0.8	1.6	1.3	1.6	1.1	1.2
Other	4.1	2.0	2.6	3.6	3.2	3.1	3.0	3.0
Total refined product sales	34.6	31.6	29.1	31.4	31.6	33.2	28.8	29.5
Crude oil supply and refining
Processed at refineries (h)	27.6	24.6	19.4	24.2	24.5	26.1	21.6	21.7
Utilization of refining capacity (j)	108	97	76	95	96	103	85	85
(for the period ended)
Capital employed (i)	1 852	1 928	1 818	1 629	804
(for the twelve months ended)
Return on capital employed (j)	26.2	22.7	20.4	30.1	32.0
Return on capital employed (j)  ****	19.7	15.6	12.5	16.5	16.3

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Suncor Energy Inc.  035

2007 Second Quarter        

Quarterly operating summary (continued)

Non-GAAP Financial Measures

Certain financial measures referred to in the Highlights and Quarterly Operating Summary are not prescribed by Canadian generally accepted accounting principles (GAAP). Suncor includes cash flow from operations, return on capital employed and cash and total operating costs per barrel data because investors may use this information to analyze operating performance, leverage and liquidity. The additional information should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

Definitions

(1) Total operations production	– Total operations production includes total production from both mining and in-situ operations.
(2) Average sales price	– This operating statistic is calculated before royalties and net of related transportation costs (including or excluding the impact of hedging activities as noted).
(3) Cash operating costs – Total operations	– Include cash costs that are defined as operating, selling and general expenses (excluding inventory changes), accretion expense, taxes other than income taxes and the cost of bitumen imported from third parties. Per barrel amounts are based on total production volumes. For a reconciliation of this non-GAAP financial measure see Management’s Discussion and Analysis.
(4) Total cash operating costs – Total operations	– Include Cash operating costs – Total operations as defined above and cash start-up costs. Per barrel amounts are based on total production volumes.
(5) Total operating costs – Total operations	–  Include Total cash operating costs – Total operations as defined above and non-cash operating costs. Per barrel amounts are based on total production volumes.
(6) Cash operating costs – In-situ bitumen production	– Include cash costs that are defined as operating, selling and general expenses (excluding inventory changes), accretion expense and taxes other than income taxes. Per barrel amounts are based on in-situ production volumes only.
(7) Total cash operating costs – In-situ bitumen production	– Include Cash operating costs – In-situ bitumen production as defined above and cash start-up operating costs. Per barrel amounts are based on in-situ production volumes only.
(8) Total operating costs – In-situ bitumen production	– Include Total cash operating costs – In-situ bitumen production as defined above and non-cash operating costs. Per barrel amounts are based on in-situ production volumes only.

Explanatory Notes

*	Excludes the impact of hedging activities.
**	Currently Natural Gas production is located in the Western Canada Sedimentary Basin.
***	Excludes exploratory wells in progress.
****	If capital employed were to include capitalized costs related to major projects in progress, the return on capital employed would be as stated on this line.

(a)  thousands of barrels per day	(d)  millions of cubic feet per day	(g)  dollars per thousand cubic feet
(b)  dollars per barrel	(e)  thousands of barrels of oil equivalent per day	(h)  thousands of cubic metres per day
(c)  dollars per barrel rounded to the nearest $0.05	(f)  millions of cubic feet equivalent per day	(i)  $ millions
		(j)  percentage

Metric Conversion

Crude oil, refined products, etc. 1m3 (cubic metre) = approx. 6.29 barrels

Inquiries John Rogers (403) 269-8670