Marketing and Access Pipeline Overview
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Front - 8.5 x 11 ANNUAL INFORMATION FORM FOR THE YEAR ENDED DECEMBER 31, 2014 MARCH 4, 2015 TABLE OF CONTENTS Notice Regarding Forward Looking Information .......................................................................................................... 2 The Corporation ........................................................................................................................................................... 5 Projects Overview ......................................................................................................................................................... 7 Marketing And Access Pipeline Overview .................................................................................................................. 17 Independent Reserves And Resources Evaluation ..................................................................................................... 17 Other Oil And Gas Information ................................................................................................................................... 26 Regulatory Matters ..................................................................................................................................................... 29 Directors And Executive Officers ................................................................................................................................ 35 Audit Committee ........................................................................................................................................................ 41 Description Of Capital Structure ................................................................................................................................. 42 Dividends Policy .......................................................................................................................................................... 42 Market For Securities ................................................................................................................................................. 43 Credit Ratings ............................................................................................................................................................. 43 Risk Factors ................................................................................................................................................................. 44 Legal Proceedings And Regulatory Actions ................................................................................................................ 59 Interests Of Management And Others In Material Transactions ............................................................................... 59 Interests Of Experts .................................................................................................................................................... 59 Transfer Agent And Registrar ..................................................................................................................................... 60 Material Contracts ...................................................................................................................................................... 60 Additional Information ............................................................................................................................................... 60 Glossary And Definitions ............................................................................................................................................ 61 Abbreviations ............................................................................................................................................................. 65 Appendix A Report On Reserves Data By Independent Qualified Reserves Evaluator Or Auditor ............................. A1 Appendix B Report Of Management And Directors On Oil And Gas Disclosure ......................................................... B1 Appendix C Audit Committee Charter ......................................................................................................................... C1 1 NOTICE REGARDING FORWARD LOOKING INFORMATION Forward looking information is based on, among other things, the Corporation's expectations regarding its future growth, results of operations, production, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, plans for and results of drilling activity, environmental matters, business prospects and opportunities. Such forward looking information reflects the Corporation's current beliefs and assumptions and is based on information currently available to it. Forward looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward looking information including risks associated with the impact of general economic conditions, industry conditions, governmental regulation, volatility of commodity prices, currency fluctuations, imprecision of reserves and resources estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the Corporation's ability to access sufficient capital from internal and external sources, the risks discussed under "Risk Factors" and elsewhere in this Annual Information Form and in the Corporation's public disclosure documents, and other factors, many of which are beyond the Corporation's control. Although the forward looking information contained in this Annual Information Form is based on assumptions which the Corporation believes to be reasonable, the Corporation cannot make assurances that actual results will be consistent with such forward looking information. Such forward looking information is made as of the date of this Annual Information Form unless otherwise stated, and the Corporation assumes no obligation to update or revise such information to reflect new events or circumstances, except as required by applicable Canadian securities law. Due to the risks, uncertainties and assumptions inherent in forward looking information, prospective investors in the Corporation's securities should not place undue reliance on this forward looking information. Unless otherwise indicated, all capitalized terms shall have the meaning set forth in the Glossary and Definitions section of this Annual Information Form. Specific forward looking information contained in this Annual Information Form includes, among others, statements pertaining to the following: • the reserve and resource potential of the Corporation's assets; • the bitumen production and designed capacity of the Corporation's assets; • the Corporation's growth strategy and opportunities, including additional development opportunities associated with the Corporation’s existing properties; • the Corporation's capital expenditure programs and future capital requirements; • the estimated quantity of the Corporation's proved reserves, probable reserves and contingent resources; • the Corporation's projections of commodity prices, costs and netbacks; • the Corporation's estimates of future interest and foreign exchange rates; • the Corporation's environmental considerations, including water usage and GHG emissions; • the Corporation's blending capability for its bitumen diluent blend; • the timing and size of certain of the Corporation's operations, optimizations, and 'brownfield' and 'greenfield' phases, including its planned bitumen development projects, and the anticipated production levels from the Corporation’s existing producing properties and its planned developments; • the intention and timing of potentially refinancing the Corporation's term loans, the 2011 Notes, the 2012 Notes and the 2013 Notes and potentially expanding the Corporation's Credit Facilities; • supply and demand fundamentals for crude oil, bitumen blend, natural gas, electricity, condensate and other diluents; 2 • the Corporation's access to adequate pipeline capacity; • the Corporation's access to third party infrastructure; • industry conditions including with respect to project development; • potential future markets for the Corporation's products; • the planned construction of the Corporation's facilities; • the Corporation's drilling plans; • the Corporation's plans for, and results of, exploration and development activities; • the expected application timeframe for the Surmont Project and for the Growth Properties; • the timing for receipt of various regulatory approvals, including receipt of various regulatory approvals for the Surmont Project, RISER initiative and Growth Properties projects; • the Corporation's treatment under governmental regulatory and royalty regimes and tax laws; • the Corporation's relationship with local and regional stakeholders; • the Corporation's future general and administrative expenses; and • the Corporation's dividend policy. With respect to forward looking information contained in this Annual Information Form, assumptions have been made regarding, among other things: • future crude oil, bitumen blend, natural gas, electricity, condensate and other diluent prices, foreign exchange rates and interest rates; • the Corporation's ability to obtain qualified staff and equipment in a timely and cost-efficient manner; • the regulatory framework governing royalties, land use,