Suncor, Canadian First Nation to team on prospective oil sands lease development (NYSE:SU)

Suncor Energy (NYSE:SU) said Thursday it signed a memorandum of understanding with Fort McKay First Nation on a prospective oil sands lease development opportunity on Fort McKay reserve lands in Alberta.

Under the MoU, Suncor (SU) will launch early stage technical and commercial feasibility assessments to determine the quality and quantity of economically recoverable mineable ore on Lease 174C, which is FMFN Reserve Land.

Suncor's (SU) Base Plant and Syncrude have been operating for decades and are the oldest mines in the oil sands, and an agreement with the First Nation could provide an option for additional supply after 2040 as Base Plant nears the end of its life in the mid-2030s.

The agreement charts a new path for economic development on indigenous lands and will help secure the Fort McKay First Nation's future growth, Chief Raymond Powder said.