EXHIBIT 99.1
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[PHOTOGRAPHS OMITTED] [LOGO OMITTED]
THE PREMIUM VALUE, CANADIAN NATURAL
DEFINED GROWTH, INDEPENDENT
NEWS RELEASE
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CANADIAN NATURAL RESOURCES LIMITED ANNOUNCES
FOURTH QUARTER 2006 UPDATE ON THE PROGRESS OF
THE HORIZON OIL SANDS PROJECT
CALGARY, ALBERTA - FEBRUARY 1, 2007 - FOR IMMEDIATE RELEASE
Canadian Natural Resources Limited ("Canadian Natural") is pleased to provide
its regular quarterly update on the Horizon Oil Sands Project ("Horizon
Project").
HORIZON PROJECT STATUS SUMMARY
SEPTEMBER 30, DECEMBER 31, MARCH 31,
2006 2006 2007
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ACTUAL ACTUAL PLAN PLAN
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Phase 1 - Work progress (cumulative) 47% 57% 55% 65%
Phase 1 - Construction capital spending (cumulative) 48% 59% 58% 68%
"We had a very productive fourth quarter on the Horizon Project and a very
successful year" commented Real Doucet, Sr. Vice-President, Oil Sands. "Our
project team continues to safely deliver as we remain ahead of our project
schedule at 57% complete versus our plan of 55% with capital spending levels as
expected."
He continued, "Canadian Natural's ability to track ahead of schedule and
control costs is a reflection of our well defined and well thought-out
execution strategy. This strategy continues to pay dividends as we build the
Horizon Project in a very heated and highly inflationary environment.
Our labour strategy of `managed open site' combined with fly-in / fly-out,
continues to demonstrate success as we have expanded our available labour force
to across Canada, bringing workers in from coast to coast. We currently have up
to 55 flights per week into our site from all across Canada and continue to
assess new locations and available labour forces. Workforce numbers at site
have met the Project labour demand with 4,000 trades persons working on site in
December.
In 2007 we anticipate mechanical completion in several plants within the
project and will continue to recruit and build the operating and maintenance
teams for the new facilities. Planning for an effective start-up and
commissioning is well advanced enabling us to identify 'pinch points` early and
take action to minimize potential impacts that we foresee.
In all, total costs for Phase 1 construction are still anticipated to be not
materially different than the original target cost of $6.8 billion. Further, we
remain on track for final commissioning during the third quarter of 2008. With
respect to future expansions, we have started consolidating results from the
Phase 2 Engineering Design Specification and have identified a number of
potential options for Phases 2/3 execution in the current high cost
environment. We will fully evaluate these options and provide further updates
as we move through that process."
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ACCOMPLISHED DURING THE FOURTH QUARTER OF 2006
DETAILED ENGINEERING
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|X| Overall detailed engineering 94% complete and is substantially completed
in most areas.
PROCUREMENT
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|X| Overall progress of 84% complete. Most major equipment is purchased and on
site.
|X| Awarded over $5.1 billion in purchase orders and contracts to date.
|X| Awarded General Mechanical Contracts for Hydrotreater and Cogeneration
areas.
MODULARIZATION
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|X| Delivered an additional 327 oversized loads to site for a total of 973
loads, representing approximately 59% of the Phase 1 total to be shipped.
CONSTRUCTION
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|X| Overall progress 42% complete.
|X| Set 333 main piperack modules.
|X| Exceeded the 2006 High Voltage (35kV) cable pull plan by 15% (30,500
meters), ensuring that all critical pulls have been completed.
|X| 5 of 6 Modular Substations have been installed and re-instated at site,
with High Voltage cable terminations ongoing.
|X| Mine overburden removal has moved 25 million bank cubic meters, which is
approx 35% complete and 4% ahead of target.
|X| Ore Preparation Area completed construction of the Mechanically Stabilized
Earth Shear Wall and transported the 800 tonne module assemblies onto
their foundations.
|X| Bitumen Production Administration Building was completed and occupied.
|X| Camp 3 was completed and ready for occupancy.
|X| Commenced Flotation Cell and Pump Box installation in Extraction.
|X| Began work on R1 & R2 pump house for piping corridors.
|X| Commenced installation of large bore piping in Coker/DRU
MILESTONES FOR THE FIRST QUARTER OF 2007
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|X| Complete Primary Separation Cell Piping in Extraction.
|X| Ready High Pressure Natural gas piping for Commissioning.
|X| Initiate module setting in Hydrotreater area.
|X| Complete Cooling Tower erection.
|X| Complete installation of the last remaining 35kV substation.
A picture gallery providing visual updates on construction progress is
available on the Company's website
(http://www.cnrl.com/horizon/about_horizon/photo_gallery.html).
The Company's results for the fourth quarter of 2006 will be released on March
7, 2007. A conference call will be held on that day at 9:00 a.m. Mountain
Daylight Time, 11:00 a.m. Eastern Daylight Time. Canadian Natural is a senior
oil and natural gas production company, with continuing operations in its core
areas located in Western Canada, the U.K. portion of the North Sea and Offshore
West Africa.
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FORWARD-LOOKING STATEMENTS
Certain statements in this document or documents incorporated herein by
reference for Canadian Natural Resources Limited (the "Company") may constitute
"forward-looking statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995. These forward-looking statements can
generally be identified as such because of the context of the statements
including words such as "believes", "anticipates", "expects", "plans",
"estimates", or words of a similar nature. The forward-looking statements are
based on current expectations and are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, performance
or achievements of the Company, or industry results, to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements. Such factors include, among others: general
economic and business conditions which will, among other things, impact demand
for and market prices of the Company's products; foreign currency exchange
rates; economic conditions in the countries and regions in which the Company
conducts business; political uncertainty, including actions of or against
terrorists or insurgent groups or other conflict including conflict between
states; industry capacity; ability of the Company to implement its business
strategy, including exploration and development activities; impact of
competition; the availability and cost of seismic, drilling and other
equipment; ability of the Company to complete its capital programs; ability of
the Company to transport its products to market; potential delays or changes in
plans with respect to exploration or development projects or capital
expenditures; the ability of the Company to attract the necessary labour
required to build its projects; operating hazards and other difficulties
inherent in the exploration for and production and sale of crude oil and
natural gas; availability and cost of financing; success of exploration and
development activities; timing and success of integrating the business and
operations of acquired companies; production levels; uncertainty of reserve
estimates; actions by governmental authorities; government regulations and the
expenditures required to comply with them (especially safety and environmental
laws and regulations); asset retirement obligations; and other circumstances
affecting revenues and expenses. The impact of any one factor on a particular
forward-looking statement is not determinable with certainty as such factors
are interdependent, and the Company's course of action would depend upon its
assessment of the future considering all information then available. Statements
relating to "reserves" are deemed to be forward-looking statements as they
involve the implied assessment based on certain estimates and assumptions that
the reserves described can be profitably produced in the future. Readers are
cautioned that the foregoing list of important factors is not exhaustive.
Although the Company believes that the expectations conveyed by the
forward-looking statements are reasonable based on information available to it
on the date such forward-looking statements were made, no assurances can be
given as to future results, levels of activity and achievements. All subsequent
forward-looking statements, whether written or oral, attributable to the
Company or persons acting on its behalf are expressly qualified in their
entirety by these cautionary statements. Except as required by law, the Company
assumes no obligation to update forward-looking statements should circumstances
or the Company's estimates or opinions change.
For further information, please contact:
CANADIAN NATURAL RESOURCES LIMITED
2500, 855 - 2nd Street S.W.
Calgary, Alberta
T2P 4J8
TELEPHONE: (403) 514-7777 ALLAN P. MARKIN DOUGLAS A. PROLL
Chairman Chief Financial Officer and
FACSIMILE: (403) 514-7888 Senior Vice-President, Finance
EMAIL: ir@cnrl.coM JOHN G. LANGILLE
WEBSITE: www.cnrl.com Vice-Chairman COREY B. BIEBER
Vice-President,
TRADING SYMBOL - CNQ STEVE W. LAUT Investor Relations
Toronto Stock Exchange President and
New York Stock Exchange Chief Operating Officer