Light Crude Oil and NGLs

Light Crude Oil and NGLs

Canadian Natural produces light crude oil and NGLs in all of its western Canadian core regions. The majority of these pools are mature but recovery factors are still modest. The majority of Canadian Natural’s light crude oil pools are produced under water flood which provide relatively high ultimate recovery factors with low production decline rates. All of these projects are low-risk but do require rigorous geological and engineering analysis in order to be successful.

Although the basin is mature, new pool development remains part of our light crude oil strategy. Our extensive undeveloped land base continues to deliver new pool discoveries through detailed geophysical and geological analysis. Our light crude oil pools have recovered approximately 30% of the original oil in place, leaving a significant resource target. The availability and development of new technology leads to improving recovery factors, adding significant leverage to Canadian Natural. We are currently testing various enhanced oil recovery processes that include water flooding, CO2 flooding, polymer flooding and alkaline surfactant polymer flooding. All of these technologies show promise.

Canadian Natural’s light crude oil drilling and development programs continue to pursue several initiatives within Western Canada. The Company efficiently executed on low-risk, infill and step-out drilling in crude oil pools located in the core regions of Northern and Southern Plains, Northwest Alberta, Northeast British Columbia and Southeast Saskatchewan. Canadian Natural’s strong technical teams continued with water flood optimization programs through detailed reservoir characterization and analysis. Enhanced Oil Recovery has made significant progress, resulting in value-adding commercial projects.

Canadian Natural has a large inventory of defined development projects, leveraging existing strategic infrastructure. The Company’s Greater Wembley area has approximately 155 net sections of undeveloped land with a potential for approximately 365 net liquids rich locations, targeting approximately 510 bbl/d per well. There are also over 200 additional locations in emerging Montney prospective layers in the Greater Wembley area.

At Septimus, Canadian Natural’s liquids rich, drill to fill natural gas development, the Company is leveraging infrastructure to maximize value. Modest drilling activity from prolific wells targets to return the Septimus plant to full capacity, while reducing already low operating costs, supporting high netbacks and maximizing value.