Commenting on first quarter results, Canadian Natural's Chairman, Allan Markin, stated, "It has been an exciting and productive beginning of the year for Canadian Natural with the first successful SCO production at Horizon on February 28th, 2009 and first crude oil production achieved April 28th, 2009 at the Olowi Field in Offshore Gabon. Conventional operations have also performed well with North America and International volumes coming in as targeted."

John Langille, Vice-Chairman of Canadian Natural continued, "Cash flow remained strong in Q1/09. We benefited from favorable heavy oil differentials and our substantial hedging program. Strengthening our balance sheet remains a priority. We have the ability to continually review capital allocation decisions, thus providing flexibility in our budget throughout the year."

Steve Laut, President and Chief Operating Officer for Canadian Natural stated, "The major capital requirements for our four major growth projects have been met. We are focused on capital and operating cost efficiencies in all areas of our business, while executing our development plans including the ramping up of production at both Olowi and Horizon. We have strong assets, all of which generate free cash flow in this environment, and a committed and dedicated team of people working together to create value for our shareholders."

 HIGHLIGHTS                                                  Three Months Ended                                     ----------------------------------------                                        Mar 31         Dec 31         Mar 31 ($ millions, except as noted)            2009           2008           2008 ---------------------------------------------------------------------------- Net earnings                        $     305    $     1,770      $     727  Per common share, basic and   diluted                           $    0.56    $      3.27      $    1.35 Adjusted net earnings from  operations (1)                     $     727    $       697      $     872  Per common share, basic and   diluted                           $    1.34    $      1.29      $    1.61 Cash flow from operations (2)       $   1,516    $     1,570      $   1,725  Per common share, basic and   diluted                           $    2.80    $      2.90      $    3.19 Capital expenditures, net of  dispositions                       $   1,256    $     1,827      $   1,753 Daily production, before  royalties  Natural gas (mmcf/d)                   1,369          1,427          1,538  Crude oil and NGLs (bbl/d)           330,017        309,570        327,217  Equivalent production (boe/d)        558,142        547,399        583,488 (1) Adjusted net earnings from operations is a non-GAAP measure that the     Company utilizes to evaluate its performance. The derivation of this     measure is discussed in the Management's Discussion and Analysis     ("MD&A"). (2) Cash flow from operations is a non-GAAP measure that the Company     considers key as it demonstrates the Company's ability to fund capital     reinvestment and debt repayment. The derivation of this measure is     discussed in the MD&A. 

HIGHLIGHTS

- Total crude oil and NGLs production for Q1/09 was 330,017 bbl/d, an increase of 7% from the previous quarter. Volumes in Q1/09 reflect the transition between steam and production cycles for Primrose thermal wells, the early production from the Primrose East expansion, continued conversion of production wells to polymer injection wells at Pelican Lake, increased production from Baobab, and initial Horizon production.

- Natural gas production for Q1/09 averaged 1,369 mmcf/d, down 4% from the previous quarter as expected. The decrease in volumes for Q1/09 from previous quarters reflects the continuing reallocation of capital towards higher return crude oil projects.

- Quarterly cash flow from operations was $1.5 billion, a decrease of 3% from the previous quarter. The decrease from Q4/08 reflects lower crude oil and natural gas price realizations and lower natural gas sales volumes, partially offset by the impact of higher crude oil sales volumes and realized risk management gains.

- Quarterly net earnings for Q1/09 of $305 million included the effects of unrealized risk management activities, stock-based compensation and fluctuations in foreign exchange rates. Excluding these items, quarterly adjusted net earnings from operations for Q1/09 were $727 million, a increase of 4% from the previous quarter.

- The drilling program at Baobab in Offshore CA-A?1/2te d'Ivoire was completed in Q1/09. The fourth well was brought on production in early Q2/09. The four wells restored production of approximately 11,000 bbl/d net to Canadian Natural.

- First crude oil production was achieved at the Olowi Field in Offshore Gabon on April 28, 2009.

- First synthetic crude oil ("SCO") production was achieved at Horizon on February 28, 2009. First shipment of SCO into the sales pipeline was achieved on March 18, 2009.

- Declared a quarterly cash dividend on common shares of $0.105 per common share payable July 1, 2009.

 OPERATIONS REVIEW Activity by core region                              -----------------------------------------------                                  Net undeveloped land     Drilling activity                                                 as at    three months ended                                          Mar 31, 2009          Mar 31, 2009                               (thousands of net acres)       (net wells) (1) ---------------------------------------------------------------------------- North America conventional  Northeast British Columbia                     2,188                  15.0  Northwest Alberta                              1,289                  33.2  Northern Plains                                6,318                  96.1  Southern Plains                                  887                   8.3  Southeast Saskatchewan                           132                   3.0  Thermal In-situ Oil Sands                        491                 207.0 ----------------------------------------------------------------------------                                                11,305                 362.6 Oil Sands Mining and Upgrading                    115                  42.0 North Sea                                         182                   0.9 Offshore West Africa                              188                   2.3 ----------------------------------------------------------------------------                                                11,790                 407.8 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (1) Drilling activity includes stratigraphic test and service wells Drilling activity (number of wells)                                               Three Months Ended Mar 31                                       --------------------------------------                                                2009                2008                                         Gross       Net     Gross       Net ---------------------------------------------------------------------------- Crude oil                                  94        93       184       173 Natural gas                                87        64       191       161 Dry                                        16        15        13        11 ---------------------------------------------------------------------------- Subtotal                                  197       172       388       345 Stratigraphic test / service wells        236       236        15        15 ---------------------------------------------------------------------------- Total                                     433       408       403       360 ----------------------------------------------------------------------------  Success rate (excluding   stratigraphic test / service wells)                91%                 97% ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- North America Conventional North America natural gas                                                  Quarterly Results                                     ----------------------------------------                                         Q1/09          Q4/08          Q1/08 ---------------------------------------------------------------------------- Natural gas production (mmcf/d)         1,347          1,405          1,513 ---------------------------------------------------------------------------- Net wells targeting natural gas            72             43            167 Net successful wells drilled               64             41            161 ----------------------------------------------------------------------------  Success rate                              89%            95%            96% ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- 

- Q1/09 North America natural gas production decreased 11% as expected from Q1/08 and decreased 4% from Q4/08, reflecting natural declines in base production and the Company's strategic decision to reduce spending on natural gas drilling. The Company had a limited but highly successful winter drilling program with all planned wells drilled and all planned tie-ins completed prior to spring break-up.

- Canadian Natural successfully completed 64 net natural gas wells in Q1/09 with an active program across the Company's core regions. In Northeast British Columbia, 15 net wells were drilled, while in Northwest Alberta, 29 net wells were drilled. In the Northern Plains, 20 net wells were drilled, with eight net wells drilled in the Southern Plains. - Planned drilling activity for Q2/09 includes one natural gas well compared to drilling activity for Q2/08 of eight natural gas wells.

 North America crude oil and NGLs                                                   Quarterly Results                                         Q1/09          Q4/08          Q1/08                                     ---------------------------------------- ---------------------------------------------------------------------------- Crude oil and NGLs production  (bbl/d)                              253,833        240,831        248,960 ---------------------------------------------------------------------------- Net wells targeting crude oil              97            190            176 Net successful wells drilled               90            181            171 ----------------------------------------------------------------------------  Success rate                              93%            95%            97% ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- 

- Q1/09 North America crude oil and NGLs production increased 2% from Q1/08 and increased 5% from Q4/08 levels. The majority of the incremental production volume was contributed by thermal crude oil and Pelican Lake crude oil.

- In Q1/09 after initial steaming, Canadian Natural discovered oil seepage at the surface on one of the new multi-well pads at Primrose East. A significant amount of diagnostic work has been done and the Company believes it has identified the issue and the remedial action required. Canadian Natural has submitted a detailed analysis and provided a recommendation on how to proceed to the regulators. The Company will proactively work with the regulators on resolving the issue and returning Primrose East to normal operations.

- Canadian Natural is continuing its proposed third phase of the thermal growth plan with a development plan for the 45,000 bbl/d Kirby In-Situ Oil Sands Project located approximately 85 km northeast of Lac La Biche in the Regional Municipality of Wood Buffalo. The Company has filed its formal regulatory application documents for this project and is awaiting regulatory approval. Canadian Natural will decide in late 2009 or early 2010 when to proceed with the project.

- Development of new pads and secondary recovery conversion projects at Pelican Lake continued as expected throughout Q1/09. In Q1/09, the Company drilled three horizontal wells with plans to drill one vertical service well and an additional 46 horizontal wells throughout the remainder of 2009. Pelican Lake production averaged approximately 37,000 bbl/d for Q1/09.

- Conventional heavy crude oil production volumes decreased slightly in Q1/09 compared to Q4/08, reflecting expected declines in certain older fields and higher than forecast downtime due to cold weather.

- During Q1/09, drilling activity targeted 97 net wells including 72 wells targeting heavy crude oil, three wells targeting Pelican Lake crude oil, 14 wells targeting thermal crude oil and eight wells targeting light crude oil.

- Planned drilling activity for Q2/09 includes 63 net crude oil wells, excluding stratigraphic test and service wells.

 International                                                 Quarterly Results                                     ----------------------------------------                                         Q1/09          Q4/08          Q1/08 ---------------------------------------------------------------------------- Crude oil production (bbl/d)  North Sea                             42,369         42,991         49,568  Offshore West Africa                  30,431         25,748         28,689 ---------------------------------------------------------------------------- Natural gas production (mmcf/d)  North Sea                                 10             10             11  Offshore West Africa                      12             12             14 ---------------------------------------------------------------------------- Net wells targeting crude oil             3.2            1.1            2.2 Net successful wells drilled              3.2            1.1            2.2 ----------------------------------------------------------------------------  Success rate                             100%           100%           100% ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- 

North Sea

- North Sea production for Q1/09 was 42,369 bbl/d. During the first quarter, 0.9 net wells were drilled, with 0.4 net wells in progress at the end of the quarter with focus continuing to be on lowering costs, high grading inventory and infill drilling opportunities.

- During the quarter, drilling commenced on Deep Banff, a high temperature, high pressure, natural gas well. Canadian Natural's initial net paying interest in the well is 18%. Results are expected in the second quarter.

Offshore West Africa

- Offshore West Africa's crude oil production for the quarter increased by 18% from Q4/08. This was largely due to a full quarter of production from the first three wells delivered in the Baobab drilling program. A fourth and final well was completed in the quarter and was brought on production early in the second quarter.

- Progress on the Facility Upgrade Project at Espoir to increase capacity of the Floating Production Storage and Offtake Vessel ("FPSO") continues ahead of schedule and is targeted to be complete in late Q3/09.

- At the Olowi Project in Offshore Gabon, two further production wells were completed. The FPSO and Conductor Supported Platform were commissioned and first production of crude oil was achieved on April 28, 2009. Further drilling and development activity is continuing.

Oil Sands Mining and Upgrading

- Canadian Natural substantially completed the construction at Horizon with first production of SCO from Phase 1 achieved February 28, 2009, representing a major milestone achieved by the Company. First shipment of SCO into the sales pipeline was achieved on March 18, 2009.

- Construction and commissioning of the final unit, Plant 42 - the Distillate Hydrotreater - was completed in late March.

- During April 2009, production was shut down for a period of time to facilitate equipment maintenance and ensure product quality. All major components of the plant have been tested and so far have shown no issues with design or capacity limitations.

- Horizon production was 304,544 barrels for Q1/09, as the Company worked through the commissioning of the plant, averaging daily production volumes of 3,384 bbl/d. These volumes went to pipeline fill and on-site tank inventory.

- Since first SCO production, Horizon has produced approximately 1.1 million barrels of SCO of which approximately 766,000 barrels filled the sales pipeline to Edmonton. The SCO inventory on site at the end of April was just over 327,000 barrels.

- As expected during the initial stages of commissioning, production volumes continue to fluctuate on a weekly basis. Nearing the end of Q2/09, the Company targets production volumes to stabilize with a steady ramp up to full production by the end of 2009. The Company will work towards full capacity throughout 2009 as the plant continues to be fine tuned to design rates with a focus on safety, reliability, and cost control.

- Tranche 2 of the expansion Phase 2/3, engineering and procurement is underway and focuses on increasing reliability and uptime. Tranches 3 and 4 of Phase 2/3 continue to be re-profiled.

 MARKETING                                        Quarterly Results                                     ----------------------------------------                                         Q1/09          Q4/08          Q1/08 ---------------------------------------------------------------------------- Crude oil and NGLs pricing  WTI(1) benchmark price   (US$/bbl)                           $ 43.21      $   58.75        $ 97.96  Western Canadian Select blend   differential from WTI (%)                21%            33%            22%  Corporate average pricing   before risk management (C$/bbl)     $ 41.25      $   45.81        $ 78.99 Natural gas pricing  AECO benchmark price (C$/GJ)         $  5.34      $    6.43        $  6.76  Corporate average pricing   before risk management (C$/mcf)     $  5.46      $    7.03        $  7.77 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (1) Refers to West Texas Intermediate (WTI) crude oil barrel priced at     Cushing, Oklahoma. 

- In Q1/09, the Western Canadian Select ("WCS") heavy crude oil differential as a percent of WTI was 21%, compared to 33% in Q4/08. Heavy crude oil differentials narrowed in Q1/09 due to a stronger demand from the US for heavy crude oil.

- The marketing strategy for Horizon SCO remains flexible. There is an active market for the product and the Company will be selling the SCO to refiners throughout North America.

- During Q1/09, the Company contributed approximately 156,000 bbl/d of its heavy crude oil streams to the WCS blend as market conditions resulted in this strategy offering the optimal pricing for bitumen crude oil.

- Natural gas pricing for Q1/09 weakened compared to prior periods primarily due to supply/demand imbalances. North America natural gas inventory levels remained high during the first quarter due to lower industrial consumption.

FINANCIAL REVIEW

- The Company continues to believe that its internally generated cash flow from operations supported by the implementation of its commodity hedge policy, the flexibility of its capital expenditure programs supported by its multi-year financial plans, its existing credit facilities and its ability to raise new debt on commercially acceptable terms, will provide sufficient liquidity to sustain its operations in the short, medium and long-term and support its growth strategy. A brief summary of the Company's strengths are: -- A diverse asset base geographically and by product - produced in excess of 558,000 boe/d in Q1/09, comprised of approximately 41% natural gas and 59% crude oil - with 94% of production located in G8 countries.

-- Financial stability and liquidity - cash flow from operations of $1,516 million for Q1/09, with available unused bank lines of $1,769 million at March 31, 2009.

-- Reduced volatility of commodity prices - a proactive commodity hedging program to reduce the downside risk of volatility in commodity prices supporting cash flow for its capital expenditure program.

-- In Q1/09 the Company repaid $420 million on the non-revolving syndicated acquisition credit facility maturing in October 2009. An additional $285 million has been repaid thus far in Q2/09.

-- A strengthening balance sheet with debt to book capitalization of 41% and debt to EBITDA of 1.8 times, both within targeted ranges.

- Declared a quarterly cash dividend on common shares of C$0.105 per common share, payable July 1, 2009.

OUTLOOK

- The Company forecasts 2009 production levels before royalties to average between 1,274 and 1,330 mmcf/d of natural gas and between 326,000 and 389,000 bbl/d of crude oil and NGLs.