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EXHIBIT 1
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MATERIAL CHANGE REPORT
ITEM 1 REPORTING ISSUER
Suncor Energy Inc.
112 Fourth Avenue S.W.
Box 38
Calgary, Alberta
T2P 2V5
ITEM 2 DATE OF MATERIAL CHANGE
October 24, 2000
ITEM 3 PRESS RELEASE
A Press Release with respect to the material change was issued
by Suncor Energy Inc. on October 24, 2000.
ITEM 4 SUMMARY OF MATERIAL CHANGE
(ALL DOLLAR AMOUNTS ARE EXPRESSED IN CANADIAN DOLLARS)
Suncor Energy Inc. ("Suncor") announced on October 24, 2000 that it
has increased its cost estimate for its Project Millennium to $2.8
billion, up from its revised cost estimate of $2.45 billion given in
the first quarter of 2000. The increased costs are largely attributed
to the rising costs of labour, fabrication and material and a $150
million change in the project scope.
The additional estimated capital costs, which were approved by
Suncor's Board of Directors, are expected to be finalized through
internally generated cash flow and additional borrowing.
ITEM 5 FULL DESCRIPTION OF MATERIAL CHANGE
Suncor Energy Inc. ("Suncor") announced on October 24, 2000 that it
has increased its cost estimate for its Project Millennium to $2.8
billion. In the first quarter of 2000, Suncor had estimated project
costs could be as high as $2.45 billion, up from the original estimate
of $2 billion.
The increased costs are largely attributed to the rising costs of
labour, fabrication and material and a $150 million change in the
project scope, which scope change was announced in the second quarter
of 2000.
One of the largest capital projects in Canada, Project Millennium will
more than double Suncor's oil sands production capacity from an
average of 105,000 barrels per day in 1999 to 225,000 barrels per day
in 2002. The project is the cornerstone of Suncor's plan to achieve
daily production capacity of 400,000 to 450,000 barrels per day at its
oil sands operations by 2008.
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2
Project Millennium is approximately 50 per cent complete, engineering
is essentially finished, all materials have been purchased and the
focus is on construction and completion. Major commissioning work is
still planned for the second half of 2001, with previously announced
production and cash operating cost targets on track. Project
Millennium is expected to increase plant reliability, provide
environmental improvements and reduce oil sands cash costs to between
$8.50 and $9.50 per barrel.
The additional estimated capital costs, which were approved by
Suncor's Board of Directors, are expected to be finalized through
internally generated cash flow and additional borrowing. Suncor will
also review its hedging program in light of expected capital spending.
ITEM 6 RELIANCE ON CONFIDENTIALITY SECTION OF THE ACT
Not applicable
ITEM 7 OMITTED INFORMATION
Not Applicable
ITEM 8 FURTHER INFORMATION
For further information relating to the foregoing, contact Michael W.
O'Brien, Suncor's Executive Vice President, Corporate Planning and
Chief Financial Officer, at 403-269-8111.
ITEM 9 STATEMENT OF SENIOR OFFICER
The foregoing accurately discloses the material change referred to
herein.
DATED at Calgary, Alberta, this 24th day of October, 2000.
"MICHAEL W. O'BRIEN"
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MICHAEL W. O'BRIEN
Executive Vice President, Corporate Development
and Chief Financial Officer
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
SUNCOR ENERGY INC.
Date: October 25, 2000 By: "MICHAEL W. O'BRIEN"
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MICHAEL W. O'BRIEN
Executive Vice President,
Corporate Development and Chief
Financial Officer
