CNR Completes Acquisition of Two North Sea Fields

CNR International (U.K.) Limited has formally approved and transferred the operatorship of the Ninian and Murchison oil fields from Kerr-McGee North Sea (U.K.) Limited.

The transfer of operatorship represents the final stage in CNR International's acquisition of these Northern North Sea assets from Kerr-McGee as previously announced in August. It also further establishes CNR International as a major producer and operator in the United Kingdom North Sea. The Ninian field includes the established waterflood operations in addition to substantial partly developed and undeveloped oil accumulations within the capture area of the Ninian infrastructure, including the Columba terraces and the Lyle field. Murchison is a mature waterflood straddling the Norwegian and U.K. sectors of the North Sea. Both Murchison and Ninian also contain significant exploration opportunities in surrounding acreage.

As of December 16, 2002, CNR International will become the operator and duty holder of the three fixed installations comprising the Ninian Field as well as the Murchison fixed installation. The transfer of operatorship of these significant assets is the result of considerable dedication and effort from Transition Teams within both CNR International and Kerr-McGee. The co-operation of the U.K. Department of Trade and Industry, the U.K. Health and Safety Executive, the Norwegian Petroleum Directorate, and the Norwegian Ministry of Petroleum and Energy have enabled this achievement while maintaining the integrity of the operations from a safety, environmental and value standpoint.

CNR International sees tremendous potential for both optimization of existing North Sea fields and development around existing infrastructure. "This is the foothold in the North Sea that Canadian Natural has been striving for," says Wayne Chorney, Director of Production/Operations for CNR International. "We have achieved a high working interest and operator control in assets where we see considerable upside from optimization, development, and exploration."