IHS Herold Global Upstream M&A Review

Home , Athabasca oil sands, Husky Energy, Imperial Oil, Suncor Energy

Examples of unconventional content included in the full report.

The IHS Herold Global Upstream M&A Review is IHS Inc.’s annual study of global upstream merger, acquisition, and divestiture activity in the M&A marketplace. The study is organized by region, providing an overview of transaction activity (transaction value, deal count, transacted reserve volumes) and valuation metrics (implied reserve costs). M&A regional reviews for Worldwide, United States, Canada, Europe, Africa & Middle East, Asia-Pacific, Latin America, and Former Soviet Union are also provided.

The study provides a comprehensive analysis of more than 1,450 significant upstream reserve and resource transactions (i.e., greater than $10 million) valued at approximately $750 billion that were consummated over the five years through year-end 2011. The objectives of the analysis are to draw attention to emerging trends, market valuation measures, and shifts in regional and international transaction volumes, values, and activity in the upstream M&A&D arena.

The source of all data and charts is the IHS Herold M&A Database unless otherwise noted. All figures are in US dollars.

Regional Play: Oil Sands

 Further consolidation in the oil sands, including the purchase of considerable assets on the market, will be led by foreign national oil companies and large international oil companies that can fund huge development spending and withstand high operating costs and environmental scrutiny.  PetroChina became the first Chinese company to take full control of a Canadian oil sands project through its acquisition of the remaining interest in the MacKay River project, which will provide a good test of operational expertise.  The recent increase of assets on the market, including those by ConocoPhillips and put/call options on additional properties covered in the PetroChina agreement with Athabasca Oil Sands, will result in more oil sands M&A activity during 2012.  The bankruptcy auction of Oilsands Quest will test the market for smaller packages of bitumen assets.  Nexen's disappointing results at Long Lake and a change in its CEO has led to rumors that the company may be sold. A bid by an Asian firm would test the Canadian government’s willingness to approve such a sale of major domestic companies. IHS Herold Global Upstream M&A Review

Canada - Oil Sands: Athabasca Mining Projects Regulatory Project Status Working Interests Horizon Operating Canadian Natural (100%) Jackpine Mine Operating Royal Dutch Shell (60%), Chevron (20%), Marathon Oil (20%) Millenium Operating Suncor Energy (100%) Syncrude Operating Canadian Oil Sands (36.74%), Imperial Oil (25%), Suncor Energy (12%), China Petrochemical (9.03%), Nexen Inc.(7.23%), Mocal Energy (5%), Murphy Oil (5%) Kearl Construction Imperial Oil (70.96%), Exxon Mobil (29.04%) North Steepbank Extension Construction Suncor Energy (100%) Fort Hills Proposed Suncor Energy (40.8%), Total (39.2%), Teck Resources (20%) Frontier/ Equinox Proposed Silverbirch (50%), Teck Resources (50%) Joslyn North Proposed Total (38.25%), Suncor Energy (36.75%), Occidental Petroleum (15%), INPEX (10%) Northern Lights Proposed China Petroleum & Chemical (50%), Total (50%) Pierre River Proposed Royal Dutch Shell (60%), Chevron (20%), Marathon Oil (20%) Voyageur South Proposed Suncor Energy (100%) Source: IHS Inc.; Alberta Dept. of Energy; Oil Sands Developers Group

Canada - Oil Sands: Projects Summary Production Capacity, Mbbl/d Project Status Mining In-Situ Total

Operating 921 933 1,854

Under Construction 295 420 715

Awaiting Regulatory Approval 1,390 810 2,200

Under Regulatory Review 600 1,381 1,981 Announced 100 1,390 1,490 Total 3,306 4,933 8,239 Source: Oil Sands Developers Group

For additional information on this Regional Play please see the following reports:

 IHS Herold M&A Alert: Early 2012 Transactions Spotlight Potential Resurgence of Alberta Oil Sands Market  IHS Herold SEAM Alert: Oilsands Quest Extends Deadline for Offers  IHS Herold SEAM Alert: ConocoPhillips Offers for Sale More Alberta Oil Sands Assets

IHS Herold Global Upstream M&A Review

Canada - Oil Sands: In-Situ Projects Regulatory Project Status Region Working Interests Christina Lake Operating Athabasca Cenovus (50%), ConocoPhillips (50%) Christina Lake Operating Athabasca MEG Energy (100%) Firebag Operating Athabasca Suncor Energy (100%) Foster Creek Operating Athabasca Cenovus (50%), ConocoPhillips (50%) Great Divide Operating Athabasca Connacher Oil & Gas (100%) Hangingstone Operating Athabasca Japan Petrol. Explor. (75%), Nexen (25%) Harper Carbonate Pilot Operating Athabasca Sunshine Oil Sands (100%) Jackfish Operating Athabasca Devon (50%), BP (50%) Kai Kos Dehseh Leismer Operating Athabasca Statoil (60%), PTT E&P (40%) Long Lake Operating Athabasca Nexen (65%), CNOOC (35%) MacKay River Operating Athabasca Suncor Energy (100%) Saleski Pilot Operating Athabasca Laricina Energy (100%) Surmont Operating Athabasca ConocoPhillips (50%), Total (50%) Cold Lake Operating Cold Lake Imperial Oil (100%) Orion Operating Cold Lake Royal Dutch Shell (100%) Primrose/Wolf Lake Operating Cold Lake Canadian Natural Resources (100%) Tucker Operating Cold Lake Husky Energy (100%) Peace River Cadotte Lake Operating Peace River Royal Dutch Shell (100%) Algar Lake Construction Athabasca Grizzly Oil Sands (100%) BlackGold Construction Athabasca Harvest Operations (100%) Blackrod Construction Athabasca BlackPearl Resources (100%) Germain Construction Athabasca Laricina Energy (100%) Kirby Construction Athabasca Canadian Natural Resources (100%) STP McKay Construction Athabasca Southern Pacific Resource (100%) Sunrise Construction Athabasca BP (50%), Husky Energy (50%) Lindbergh Construction Cold Lake Pengrowth (100%) Birch Mountain Proposed Athabasca Canadian Natural Resources (100%) Borealis Proposed Athabasca Cenovus (100%) Chard Proposed Athabasca Suncor Energy (100%) Clearwater Proposed Athabasca Alberta Oilsands (100%) Corner Proposed Athabasca Statoil (60%), PTT E&P (40%) Dover Proposed Athabasca PetroChina (60%), Athabasca Oil Sands (40%) Dover West Proposed Athabasca Athabasca Oil Sands (100%) Grand Rapids Proposed Athabasca Cenovus (100%) Gregoire Lake Proposed Athabasca Canadian Natural Resources (100%) Grouse Proposed Athabasca Canadian Natural Resources (100%) Hangingstone Proposed Athabasca Athabasca Oil Sands(100%) Hangingstone Proposed Athabasca Statoil (60%), PTT E&P (40%) Hoole Proposed Athabasca Pixar Petroleum (100%) Legend Lake Proposed Athabasca Sunshine Oil Sands (100%) Leismer Proposed Athabasca Canadian Natural Resources (100%) Leismer Proposed Athabasca Statoil (60%), PTT E&P (40%) Lewis Proposed Athabasca Suncor Energy (100%) MacKay River Proposed Athabasca PetroChina (100%)

McMullen Proposed Athabasca Husky Energy (100%) Meadow Creek Proposed Athabasca Suncor Energy (100%) Narrows Lake Proposed Athabasca Cenovus (50%), ConocoPhillips (50%) Pike Proposed Athabasca Devon (100%) Saleski Proposed Athabasca Husky Energy (100%) Surmont Proposed Athabasca MEG Energy (100%) Tamarack Proposed Athabasca Ivanhoe 100% Terre de Grace Pilot Proposed Athabasca BP (75%), Value Creation (25%) Thickwood Proposed Athabasca Sunshine Oil Sands (100%) Thornbury Proposed Athabasca Statoil (60%), PTT E&P (40%) TriStar Pilot Proposed Athabasca Value Creation (100%)

West Ells Proposed Athabasca Sunshine Oil Sands (100%) Caribou Proposed Cold Lake Husky Energy (100%) Gemini Proposed Cold Lake Koch (100%) Taiga Proposed Cold Lake OSUM Oil Sands (100%) Peace River Carmon Creek Proposed Peace River Royal Dutch Shell (100%) Red Earth Proposed Peace River Southern Pacific Resource (100%) Sawn Lake Proposed Peace River &ora Energy (100%) Ells River Suspended Athabasca Chevron (60%), Royal Dutch Shell (20%), Western Oil Sands (20%)

Source: IHS Inc., Alberta Dept. of Energy, Oil Sands Developers Group

IHS Herold Global Upstream M&A Review

2012 IHS Herold Global Upstream M&A Review Clients of IHS Herold products and services can access all data contained in the printed edition on www.ihsherold.com, as well as in the IHS Herold M&A Database. For information on IHS Herold products and services, please contact IHS Herold Sales. To order a hard copy of the 2012 IHS Herold Global Upstream M&A Review, please send your contact information to IHS Customer Care.

Inquiries About Data All inquiries about data should be directed to Christopher W. Sheehan at +1 203 847 3344 or [email protected].

Primary Author Project Team Christopher W. Sheehan Tom Biracree Bill Nagler Joseph McGerigle Anna M. Wuchek Contributors Henrik Aittola Katherine M. Flynn Adam Karpinski Claudia E. Pessagno Alex R. Belosic Kelli Francis Jason W. Keely Sven Del Pozzo, CFA Lysle R. Brinker Karen L. Franovic Bryan McNamara Daniel T. Pratt, CFA Timothy J. Brown Cindy Giglio, CFA Alyssa Nicoletti Maral Ryzakuliyeva Andrew J. Byrne, CFA Robert E. Gillon Paul O'Donnell Matti Teittinen, CFA Hassan Eltorie Bassam Hanna Braden Orr Christopher Underhill, CFA

About IHS Herold (www.ihsherold.com) Founded in 1948, IHS Herold specializes in valuation, strategy, and performance measurement of the world’s leading oil and gas companies. IHS Herold closely monitors the world’s energy capital markets and the dynamic merger, acquisition, and divestiture marketplace for energy assets. IHS Herold is part of IHS Inc. (NYSE: IHS) and an investment adviser registered with the state of Connecticut.

About IHS (www.ihs.com) IHS Inc. (NYSE: IHS) is a leading source of information and insight in pivotal areas that shape today’s business landscape: energy, economics, geopolitical risk, sustainability and supply chain management. Businesses and governments around the globe rely on the comprehensive content, expert independent analysis, and flexible delivery methods of IHS to make high- impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS employs more than 5,500 people in more than 30 countries around the world.

Contact Information:

Norwalk Houston

200 Connecticut Avenue 5333 Westheimer Road Suite 3A Suite 100 Norwalk, CT 06854 USA Houston, TX 77056 USA Phone: +1 203 847 3344 Phone: +1 713 840 8282 Fax: +1 203 847 5566 Fax: +1 713 369 0296

Photocopying of the 2012 IHS Herold Global Upstream M&A Review, even for internal distribution, is strictly prohibited.

The 2012 IHS Herold Global Upstream M&A Review is copyrighted under United States and International laws. Photocopying or duplication of any Herold research product is illegal and a serious infringement of our copyright. IHS Inc. requires that the written permission of the publisher be attained if one wishes to summarize or quote IHS analyses. Storage of IHS data in computer systems or facsimile transmission without permission is also prohibited.

The information in this report has been obtained from sources believed to be reliable and is recorded in the IHS Herold’s M&A Database. The publisher of the 2012 IHS Herold Global Upstream M&A Review and its collaborators are dependent on such sources for this information and do not guarantee or warrant the accuracy or completeness of the articles, information, analyses, or data contained herein, and disclaim liability for any loss arising from the use thereof. From time to time, this firm and/or its officers may have long or short positions in the securities mentioned. Under no circumstances is the information in this report to be used or considered as an offer to sell or a solicitation of an offer to buy any security discussed herein.