Northeast British Columbia

Northeast British Columbia

Canadian Natural is the second largest holder of undeveloped land in British Columbia. Along with lowering and controlling our costs, this land position combined with our extensive infrastructure allows for low cost entry into the overheated market for natural gas resources, most notably in the Montney shales. The progress we have made in the Deep Basin Lower Doig/Montney play continues into our Northeast British Columbia Montney project at Septimus, which is now in the first phase of production. The Company will maximize its cost effective position by integrating the data with the right technology, and acquire new land and assets that fit existing infrastructure. The Helmet area of Northeast British Columbia has a play that contains significant thicknesses of natural gas pay in the Muskwa shale. Based on existing data, our strategic land position and our Jean-Marie infrastructure, we have allocated long-term capital to the experimental stage of this project. We will further evaluate the Muskwa potential by drilling more wells on our existing land and production testing through existing facilities to determine if a viable development exists.

Significant geological variation extends throughout the productive reservoirs in this region located west of the British Columbia and Alberta border to Prince George, producing light crude oil, NGLs and natural gas.

Natural gas and associated NGLs reserves are found in numerous carbonate and sandstone formations at depths up to 4,500 vertical meters. The exploration strategy focuses on comprehensive evaluation through two dimensional seismic, three dimensional seismic and targeting economic prospects close to existing infrastructure. The region has a mix of low risk multi-zone targets, deep higher risk exploration plays and emerging unconventional shale gas plays. The 2006 acquisition of Anadarko Canada Corporation and additional assets acquired in 2010 significantly increased the asset base in this area.