EXHIBIT 99.1
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CANADIAN NATURAL
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NEWS RELEASE | Discipline | Opportunity | Strategy
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CANADIAN NATURAL RESOURCES LIMITED ANNOUNCES
SECOND QUARTER 2007 UPDATE ON THE PROGRESS OF
THE HORIZON OIL SANDS PROJECT
CALGARY, ALBERTA - JULY 31, 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").
"Canadian Natural achieved a major milestone on our Horizon Project during
Q2/07, with overall work progress at the end of the quarter reaching 75%
complete and field construction approaching two thirds complete. All major
vessels have either been erected or are currently onsite. Work scheduled for
the coming months will focus on mechanical construction, which is scheduled to
be completed through a combination of lump sum and reimbursable contracts. We
continue to effectively execute our well defined strategies" commented Real
Doucet, Sr. Vice President, Oil Sands.
"The project remains on track for targeted start-up in the third quarter of
2008. Project progress slowed slightly during the quarter due in part to labor
productivity, the temporary work shut down on the tank farm and delays
associated with a realignment of certain contract packages to match scope to
the marketplace contractor supply to better manage costs.
Despite the challenges of a construction market in Alberta operating at high
capacity, we have been able to build our onsite manpower to over 7,000
personnel. With the success of our Fly-In Fly-Out program and Managed Open Site
policy we have been able to add workers as required.
Management of costs continues to be a focus for the Project team and we
currently remain within our forecast estimate of 5% to 12% above our original
$6.8 billion Board Authorization for construction capital spending.
We are also well into our planning for commissioning and start-up. Our
commissioning plans are established to identify the priority systems that will
be required later this year and early in 2008. We are currently hiring and
training operating personnel, setting up procedures and systems and continue to
develop our start-up strategies to ensure we stay on track for first oil."
HORIZON PROJECT STATUS SUMMARY
MAR 31, 2007 JUNE 30, 2007 SEPT 30, 2007
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ACTUAL ACTUAL PLAN PLAN
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Phase 1 - Work progress (cumulative) 66% 75% 77% 88%
Phase 1 - Construction capital spending* (cumulative) 69% 79% 77% 85%
*Relative to overall Phase 1 project construction capital of $6.8 billion
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ACCOMPLISHED DURING THE SECOND QUARTER OF 2007
DETAILED ENGINEERING
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o Overall detailed engineering 97% complete and substantially completed in
most areas.
PROCUREMENT
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o Overall procurement progress is 95% complete.
o Have awarded over $5.4 billion in purchase orders and contracts to date.
o Delivered to site over 30,000 standard loads.
o Operations and maintenance service and supply agreements are in
negotiation.
MODULARIZATION
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o Delivered an additional 172 oversized loads to site during the quarter for
a total of 1,424 loads, which represents approximately 86% of the total
requirement.
CONSTRUCTION
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o Overall construction progress is 63% complete.
o Mine overburden removal has moved over 37 million bank cubic meters, which
represents approximately 54% of the total to be moved and is 1% ahead of
schedule.
o Construction of cofferdam for the Tar River Diversion completed in Mining.
o Fabrication of Crushing Plants, Surge Facility and Conveyor Structure is
100% complete in the Ore Preparation Plant.
o Started erection of Conveyors in Ore Preparation.
o Completed Hot Water Tank in Extraction.
o Hydro-tested Primary Separation Cells and Hot Water Tank.
o Completed construction and hydro-testing of Inclined Plate Settlers in
Froth Treatment.
o Flare Stacks installed in Upgrading.
o Mechanically completed Cooling Tower Piping.
o Mechanically completed Inhibited Water and Cooling Water Pumphouse
buildings.
o 42" Water Pipeline completed.
o Wet Gas Compressor received and installed.
o Completed installation of Coker and Diluent Recovery Unit process
structures.
o Completed interconnecting welding of Primary Upgrading's piperacks.
o Energize main electrical substations R1/R2.
MILESTONES FOR THE THIRD QUARTER OF 2007
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o Complete construction of Raw Water Pond.
o Extraction plant hydro-testing.
o Start of pre-commissioning activities in all Bitumen Production Areas.
o Permanent Power energized in R1/R2 corridors pump houses.
o Electrically energize Main Electrical Substation.
o Start commissioning of Recycle Water Pond.
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 second quarter of 2007 will be released on August
2, 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 Finance & Investor Relations
Toronto Stock Exchange President and
New York Stock Exchange Chief Operating Officer