Canadian Natural Resources Limited Announces 2016 Year End Reserves

Canadian Natural Resources Limited Announces 2016 Year End Reserves

2016 YEAR-END RESERVES Determination of Reserves

  1. For the year ended December 31, 2016, the Company retained Independent Qualified Reserves Evaluators (IQREs), Sproule Associates Limited, Sproule International Limited and GLJ Petroleum Consultants Limited, to evaluate and review all of the Company’s proved and proved plus probable reserves. Sproule evaluated the Company’s North America and International crude oil, bitumen, natural gas and NGL reserves. GLJ evaluated the Company’s Horizon synthetic crude oil reserves. The IQREs conducted the evaluation and review in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook. The reserves disclosure is presented in accordance with NI 51-101 requirements using forecast prices and escalated costs.
The Reserves Committee of the Company’s Board of Directors has met with and carried out independent due diligence procedures with the IQREs as to the Company’s reserves. All reserves values are Company Gross unless stated otherwise. canadian1 Corporate Total – Canadian Natural’s 2016 performance has resulted in another year of excellent finding and development costs: — Finding, Development and Acquisition (“FD&A”) costs, excluding the change in Future Development Capital (“FDC”), were $7.34/BOE for proved reserves and $9.34/BOE for proved plus probable reserves. — FD&A costs, including the change in FDC, were $3.72/BOE for proved reserves and $5.66/BOE for proved plus probable reserves. – Proved reserves additions and revisions replaced 2016 production by 187%. Proved plus probable reserves additions and revisions replaced 2016 production by 147%. – Recycle ratios of 1.9 times and 1.5 times were achieved for proved and proved plus probable reserves respectively, excluding the change in FDC. Including the change in FDC, recycle ratios improve to 3.8 times and 2.5 times for proved and proved plus probable reserves respectively. – Proved reserves increased 4% to 5.969 billion BOE with reserve additions and revisions (including acquisitions and dispositions) of 551 million BOE. Proved plus probable reserves increased 2% to 9.179 billion BOE with reserve additions and revisions (including acquisitions and dispositions) of 433 million BOE. – The proved BOE reserve life index is 21.0 years and the proved plus probable BOE reserve life index is 32.3 years. – The net present value of future net revenues, before income tax, discounted at 10%, increased 6% to $69.3 billion for proved reserves and increased 4% to $92.3 billion for proved plus probable reserves. Net present value of future net revenues, before income tax, discounted at 10%, for proved developed producing reserves increased 26% to $46.7 billion reflecting the completion of Horizon Phase 2B. North America Exploration and Production – Canadian Natural’s North America conventional and thermal assets delivered strong reserves results in 2016: — FD&A costs, excluding the change in FDC, were $2.91/BOE for proved reserves and $2.40/BOE for proved plus probable reserves. — FD&A costs, including the change in FDC, were $5.97/BOE for proved reserves and $5.42/BOE for proved plus probable reserves. – On a proved reserves basis Canadian Natural replaced 158% of 2016 production. On a proved plus probable reserves basis, 191% of 2016 production was replaced. – Proved reserves increased 4% to 3.177 billion BOE. This is comprised of 2.086 billion bbl of crude oil, bitumen, and NGL reserves and 6.545 Tcf of natural gas reserves. – Proved plus probable reserves increased 4% to 5.162 billion BOE. This is comprised of 3.677 billion bbl of crude oil, bitumen, and NGL reserves and 8.911 Tcf of natural gas reserves. – Proved reserves additions and revisions, including acquisitions and dispositions, were 176 million bbl of crude oil, bitumen and NGL and 1.101 Tcf of natural gas. Proved plus probable reserves additions and revisions, including acquisitions and dispositions, were 242 million bbl of crude oil, bitumen and NGL and 1.167 Tcf of natural gas. – The proved BOE reserve life index is 15.6 years and the proved plus probable BOE reserve life index is 25.4 years. North America Oil Sands Mining and Upgrading – Canadian Natural’s Horizon oil sands mining and upgrading delivered strong reserves results in 2016: — FD&A costs, excluding the change in FDC, were $13.87/bbl for proved reserves and $169.88/bbl for proved plus probable reserves. — FD&A costs, including the change in FDC, were $5.92/bbl for proved reserves and $81.38/bbl for proved plus probable reserves. – Horizon proved Synthetic Crude Oil (“SCO”) reserves increased 6% to 2.559 billion bbl. Proved plus probable SCO reserves decreased 1% to 3.604 billion bbl. – SCO proved developed producing reserves increased 11% to 2.544 billion bbl largely as a result of the completion of Phase 2B. – SCO reserves accounts for 43% of the Company’s proved BOE reserves and 39% of the proved plus probable BOE reserves. International Exploration and Production – North Sea proved reserves decreased 15% to 141 million BOE due to 2016 production and the planned abandonment of the Ninian North platform, commencing in 2017. North Sea proved plus probable reserves decreased 11% to 267 million BOE. – Offshore Africa proved reserves decreased 3% to 92 million BOE largely due to 2016 production. Offshore Africa proved plus probable reserves decreased 5% to 146 million BOE. Source/ More On: cnrl oilandgasOil and Gas News Undiluted !!! “The squeaky wheel gets the oil” Follow us: @OilAndGasPress on Twitter | OilAndGasPress on Facebook ]]>

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