Canadian Natural Resources Partners with Total on Offshore South Africa Farm-Out

Canadian Natural Resources

is pleased to announce the completion of its process to find a world class partner for the joint exploration of its Block 11B/12B offshore South Africa. After a lengthy and thorough process, where Canadian Natural received a number of strong, competitive offers from well-known industry participants, the Company elected to partner with Total E&P South Africa BV, a wholly owned subsidiary of Total SA

, based on their knowledge, experience and successful history in deep water exploration. Following approval from the Government of South Africa, the Company's wholly owned subsidiary, CNR International (South Africa) Limited has completed a Farm-Out Agreement with Total. The Agreement provides that in exchange for a 50% working interest in the Block and the right to Operatorship, Canadian Natural received an undisclosed upfront cash payment, a recovery of 50% of past incurred costs and a carry in the first exploration well drilled up to a gross cost of US$150 million. The first exploration well is targeted to be drilled in 2014. In the event of a successful multi-well exploration program to define the prospect and subsequent commercial