Canadian Natural Resources Limited Announces Record First Quarter Cash Flow and Natural Gas Production Volumes

Market Wire, May, 2007

Canadian Natural Resources Limited (TSX: CNQ) (NYSE: CNQ):

In commenting on first quarter 2007 results, Canadian Natural's Chairman, Allan Markin stated, "It was a very successful quarter yielding strong crude oil and natural gas production volumes. We completed the integration of the Anadarko Canada assets with their performance overall better than expected. Through focused execution we have been able to maximize the efforts of our winter natural gas drilling program. A reduced program from first quarter of 2006 levels allowed us to concentrate on operational efficiencies and we were able to maximize the value of every dollar spent. The result was production at the top end of our first quarter guidance generated with capital expenditures within our original targets. This capital discipline is being maintained throughout our organization and is exemplified through the winter drilling program as well as continued cost controls at the Horizon Oil Sands Project."

Further comment from John Langille, Vice Chairman, included, "The successful drilling program and volumetric growth enabled us to generate record cash flows in Q1/07. We expect that our conventional business will generate 2007 cash flows of $6.0 to $6.5 billion based upon today's strip pricing. After conventional capital requirements of $3.1 billion, the conventional business is generating free cash flow of approximately $3 billion. In 2007, a large portion of that free cash flow is being directed toward construction costs at the Horizon Project which remains on target for first oil for the third quarter of 2008. We are continuing to deliver on our defined plan, and the cash flow potential of our businesses should be more than sufficient to fund the plan."

Steve Laut, President and Chief Operating Officer of Canadian Natural added, "The execution of our defined plan is a dynamic one, based upon maximizing shareholder value. Reflecting this principal, during the first quarter we made the strategic decision to reduce natural gas drilling in favor of higher return heavy oil projects. Similarly, we made the strategic decision to defer further work on a second heavy oil upgrader to handle our in-situ production growth pending stability in construction costs and clarification on how various government initiatives will be implemented. The acceleration of re-drilling at Baobab, where a portion of our 2008 capital budget will now be directed to accommodate the recent availability of a deepwater drilling rig is another example. In essence, we retain flexibility in our ongoing programs such that capital allocation for projects is continually high-graded."

HIGHLIGHTS

                                                 Three Months Ended
                                             Mar 31      Dec 31      Mar 31
($ millions, except as noted)                  2007        2006        2006
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Net earnings                              $     269   $     313   $      57
 per common share, basic and diluted      $    0.50   $    0.58   $    0.11
Adjusted net earnings from operations (1) $     621   $     412   $     268
 per common share, basic and diluted      $    1.15   $    0.77   $    0.50
Cash flow from operations (2)             $   1,622   $   1,293   $   1,039
 per common share, basic and diluted      $    3.01   $    2.41   $    1.93
Capital expenditures, net of dispositions $   2,009   $   6,497   $   2,309

Daily production, before royalties
 Natural gas (mmcf/d)                         1,717       1,620       1,436
 Crude oil and NGLs (bbl/d)                 327,001     343,705     323,662
 Equivalent production (boe/d)              613,114     613,764     563,027
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(1) Adjusted net earnings from operations is a non-GAAP term that the
    Company utilizes to evaluate its performance. The derivation of this
    item is discussed in the Management's Discussion and Analysis ("MD&A").

(2) Cash flow from operations is a non-GAAP term that the Company considers
    key as it demonstrates its ability to fund capital reinvestment and
    debt repayment. The derivation of this item is discussed in the MD&A.

- Natural gas production volumes reached record levels and represented 47% of the Company's total production. Natural gas production for Q1/07 averaged 1,717 mmcf/d compared to 1,436 mmcf/d for Q1/06 and 1,620 mmcf/d for Q4/06. The increase in natural gas production from the comparable periods primarily reflected a full quarter of additional natural gas production from the Anadarko Canada Corporation ("ACC") acquisition completed in November 2006 along with a very successful natural gas winter drilling program.

- Total crude oil and NGLs production of 327,001 bbl/d was comparable to 323,662 bbl/d for Q1/06, and decreased 5% from 343,705 bbl/d for Q4/06. The decrease from the prior quarter was anticipated due to the timing of steaming cycles related to the Company's thermal crude oil projects in North America and planned maintenance activities at the Espoir Field.