Update from L’Impériale on the portfolio of unconventional assets

Following the annual review of its strategic and corporate plan, Imperial Oil (TSE: IMO, NYSE American: IMO) has reassessed its long-term operating plans of its portfolio of unconventional assets in Alberta (Canada) and no longer intends to operate a significant portion of this portfolio. The decision not to operate these assets will result in a cashless charge in fourth quarter 2020 results of approximately $ 0.9 billion to $ 1.2 billion after tax.

These non-core assets are undeveloped, non-performing assets, and the company does not anticipate any significant future disbursements in relation to this impairment loss. This loss in value does not include the portion of non-traditional, liquid-rich, high-value assets in the company’s portfolio, assets that the company still intends to exploit.

This move is consistent with Imperial Oil’s strategy of focusing its resources and upstream efforts on its core oil sands assets as well as the most attractive parts of its unconventional asset portfolio. The decision will therefore have no impact on the production estimates provided previously.