AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON JUNE 3, 2005
REGISTRATION NO. 333-125343
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
____________________________
AMENDMENT NO. 1
TO
FORM F-9
REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OF 1933
____________________________
CANADIAN NATURAL RESOURCES LIMITED
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
ALBERTA 1311 NOT APPLICABLE
(PROVINCE OR OTHER JURISDICTION OF (PRIMARY STANDARD INDUSTRIAL (I.R.S. EMPLOYER IDENTIFICATION NO.,
INCORPORATION OR ORGANIZATION) CLASSIFICATION CODE NUMBER) IF APPLICABLE)
____________________________
SUITE 2500, 855 - 2ND STREET, S.W.,
CALGARY, ALBERTA, CANADA, T2P 4J8
(403) 517-6700
(ADDRESS AND TELEPHONE NUMBER OF REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES)
____________________________
CT CORPORATION SYSTEM, 111 8TH AVENUE, 13TH FLOOR
NEW YORK, NEW YORK 10011
(212) 590-9330
(NAME, ADDRESS AND TELEPHONE NUMBER (INCLUDING AREA CODE)
OF AGENT FOR SERVICE IN THE UNITED STATES)
____________________________
COPIES TO:
NANCY M. PENNER ANDREW J. FOLEY
PARLEE MCLAWS LLP EDWIN S. MAYNARD
3400 PETRO-CANADA CENTRE PAUL, WEISS, RIFKIND, WHARTON & GARRISON LLP
150 - SIXTH AVENUE, S.W. 1285 AVENUE OF THE AMERICAS
CALGARY, ALBERTA, CANADA NEW YORK, N.Y. 10019-6064
T2P 3Y7 (212) 373-3000
(403) 294-7000
____________________________
APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC: From time to
time after the effective date of this Registration Statement.
PROVINCE OF ALBERTA, CANADA
(PRINCIPAL JURISDICTION REGULATING THIS OFFERING)
It is proposed that this filing shall become effective (check appropriate box
below):
A. [_] upon filing with the Commission, pursuant to Rule 467(a) (if in
connection with an offering being made contemporaneously in the
United States and Canada).
B. [X] at some future date (check appropriate box below)
1. [_] pursuant to Rule 467(b) on ( ) at ( ) (designate a time
not sooner than 7 calendar days after filing).
2. [_] pursuant to Rule 467(b) on ( ) at ( ) (designate a time
7 calendar days or sooner after filing) because the securities
regulatory authority in the review jurisdiction has issued a
receipt or notification of clearance on ( ).
3. [X] pursuant to Rule 467(b) as soon as practicable after notification
of the Commission by the Registrant or the Canadian securities
regulatory authority of the review jurisdiction that a receipt
or notification of clearance has been issued with respect hereto.
4. [_] after the filing of the next amendment to this Form (if
preliminary material is being filed).
If any of the securities being registered on this Form are to be offered on
a delayed or continuous basis pursuant to the home jurisdiction's shelf
prospectus offering procedures, check the following box. [X]
THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR
DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRATION
STATEMENT SHALL BECOME EFFECTIVE AS PROVIDED IN RULE 467 UNDER THE SECURITIES
ACT OF 1933 OR ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SECTION 8(A)
OF THE ACT, MAY DETERMINE.
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PART I
INFORMATION REQUIRED TO BE
DELIVERED TO OFFEREES OR PURCHASERS
BASE SHELF PROSPECTUS
JUNE 3, 2005
[GRAPHIC OMITTED]
[LOGO - CANADIAN NATURAL]
CANADIAN NATURAL RESOURCES LIMITED
DEBT SECURITIES
______________
Canadian Natural Resources Limited may offer for sale from time to time
debt securities in the aggregate principal amount of up to US$2,000,000,000 or
its equivalent in any other currency or units based on or relating to foreign
currencies during the 25 month period that this prospectus (including any
amendments hereto) remains effective.
We will provide the specific terms of these securities and all information
omitted from this prospectus in supplements to this prospectus. You should read
this prospectus and the supplements carefully before you invest.
______________
NEITHER THE U.S. SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE
SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED
IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY
IS A CRIMINAL OFFENSE.
______________
WE ARE PERMITTED TO PREPARE THIS PROSPECTUS IN ACCORDANCE WITH CANADIAN
DISCLOSURE REQUIREMENTS, WHICH ARE DIFFERENT FROM THOSE OF THE UNITED STATES. WE
PREPARE OUR FINANCIAL STATEMENTS IN ACCORDANCE WITH CANADIAN GENERALLY ACCEPTED
ACCOUNTING PRACTICES, AND THEY ARE SUBJECT TO CANADIAN AUDITING AND AUDITOR
INDEPENDENCE STANDARDS. THEY MAY NOT BE COMPARABLE TO FINANCIAL STATEMENTS OF
UNITED STATES COMPANIES.
OWNING THE DEBT SECURITIES MAY SUBJECT YOU TO TAX CONSEQUENCES BOTH IN THE
UNITED STATES AND CANADA. THIS PROSPECTUS OR ANY APPLICABLE PROSPECTUS
SUPPLEMENT MAY NOT DESCRIBE THESE TAX CONSEQUENCES FULLY. YOU SHOULD READ THE
TAX DISCUSSION IN ANY APPLICABLE PROSPECTUS SUPPLEMENT.
YOUR ABILITY TO ENFORCE CIVIL LIABILITIES UNDER THE UNITED STATES FEDERAL
SECURITIES LAWS MAY BE AFFECTED ADVERSELY BECAUSE WE ARE INCORPORATED IN
ALBERTA, SOME OF OUR OFFICERS AND DIRECTORS AND SOME OF THE EXPERTS NAMED IN
THIS PROSPECTUS ARE CANADIAN RESIDENTS, AND MANY OF OUR ASSETS ARE LOCATED IN
CANADA.
THE DEBT SECURITIES OFFERED HEREBY HAVE NOT BEEN QUALIFIED FOR SALE UNDER
THE SECURITIES LAWS OF ANY PROVINCE OR TERRITORY OF CANADA AND ARE NOT BEING AND
MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN CANADA OR TO ANY RESIDENT
OF CANADA IN CONTRAVENTION OF THE SECURITIES LAWS OF ANY PROVINCE OR TERRITORY
OF CANADA.
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I-1
TABLE OF CONTENTS
Page
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ABOUT THIS PROSPECTUS..........................................................2
WHERE YOU CAN FIND MORE INFORMATION............................................2
FORWARD LOOKING STATEMENTS.....................................................4
DEFINITIONS....................................................................6
CANADIAN NATURAL RESOURCES LIMITED.............................................6
USE OF PROCEEDS................................................................6
INTEREST COVERAGE..............................................................7
DESCRIPTION OF DEBT SECURITIES.................................................7
CERTAIN INCOME TAX CONSIDERATIONS.............................................21
RISK FACTORS..................................................................22
PLAN OF DISTRIBUTION..........................................................24
LEGAL MATTERS.................................................................25
EXPERTS.......................................................................25
DOCUMENTS FILED AS PART OF THE REGISTRATION STATEMENT.........................26
CONSENT OF PRICEWATERHOUSECOOPERS LLP.........................................27
ABOUT THIS PROSPECTUS
In this prospectus, unless otherwise specified or the context otherwise
indicates, references to "Canadian Natural", "us", "we" or "our" mean Canadian
Natural Resources Limited and its subsidiaries, including its material operating
subsidiaries and, where applicable, their respective interests in partnerships
and other entities. Unless otherwise specified, all dollar amounts contained in
this prospectus are expressed in Canadian dollars, and references to "dollars",
"Cdn$" or "$" are to Canadian dollars and all references to "US$" are to United
States dollars.
All financial information included and incorporated by reference in this
prospectus is determined using generally accepted accounting principles which
are in effect from time to time in Canada, referred to as "Canadian GAAP". "U.S.
GAAP" means generally accepted accounting principles which are in effect from
time to time in the United States.
This prospectus replaces our base shelf prospectus dated May 8, 2003.
This prospectus is part of a registration statement on Form F-9 relating to
the debt securities that we filed with the U.S. Securities and Exchange
Commission (the "SEC"). Under the shelf registration statement, we may, from
time to time, sell any combination of the debt securities described in this
prospectus in one or more offerings up to an aggregate principal amount of
US$2,000,000,000. This prospectus provides you with a general description of the
debt securities that we may offer. Each time we sell debt securities under the
registration statement, we will provide a prospectus supplement that will
contain specific information about the terms of that offering of debt
securities. The prospectus supplement may also add, update or change information
contained in this prospectus. Before you invest, you should read both this
prospectus and any applicable prospectus supplement together with additional
information described under the heading "Where You Can Find More Information".
This prospectus does not contain all of the information set forth in the
registration statement, certain parts of which are omitted in accordance with
the rules and regulations of the SEC. You may refer to the registration
statement and the exhibits to the registration statement for further information
with respect to us and the debt securities.
WHERE YOU CAN FIND MORE INFORMATION
We file with the Alberta Securities Commission (the "ASC"), a commission of
authority in the Province of Alberta similar to the SEC, material change, annual
and quarterly reports and other information. We are subject to
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the informational requirements of the U.S. Securities Exchange Act of 1934, as
amended (the "Exchange Act"), and, in accordance with the Exchange Act, we file
reports and furnish other information with the SEC. Under the
multijurisdictional disclosure system adopted by the United States, these
reports and other information (including financial information) may be prepared
in accordance with the disclosure requirements of Canada, which differ from
those in the United States. You may read any document we furnish to the SEC at
the SEC's public reference room at Room 1024, 450 Fifth Street, N.W.,
Washington, D.C. 20549. You may also obtain copies of the same documents from
the public reference room of the SEC by paying a fee. The SEC also maintains an
internet site that contains reports and other information about issuers like us,
that file electronically with the SEC. The site address is www.sec.gov.
Under the multijurisdictional disclosure system adopted by the United
States and the provinces of Canada, the SEC and the ASC allow us to "incorporate
by reference" certain information we file with them, which means that we can
disclose important information to you by referring you to those documents.
Information that is incorporated by reference is an important part of this
prospectus. We incorporate by reference the documents listed below, which were
filed with the ASC under the SECURITIES ACT (Alberta):
o our Annual Information Form dated March 30, 2005 and management's
discussion and analysis of financial condition and results of
operations for the year ended December 31, 2004 incorporated by
reference in the Annual Information Form;
o our Information Circular dated March 17, 2005 relating to the Annual
Meeting of our Shareholders held on May 5, 2005, excluding those
portions thereof which appear under the headings "Performance Graph",
"Report on Executive Compensation by the Compensation Committee" and
"Statement of Corporate Governance Practices" (which portions shall be
deemed not to be incorporated by reference in this prospectus);
o our audited comparative consolidated financial statements as at and for
the year ended December 31, 2004, together with the auditors' report
thereon;
o our unaudited consolidated comparative financial statements for the
three month period ended March 31, 2005 and accompanying management's
discussion and analysis; and
o our material change report dated February 15, 2005 respecting the
Horizon Oil Sands Project.
Any documents of the type referred to in the preceding paragraph, or
similar material, including an Annual Information Form filed by us, all material
change reports (excluding confidential reports, if any), all updated interest
coverage ratio information, as well as all prospectus supplements disclosing
additional or updated information, filed by us with securities commissions or
similar authorities in the relevant provinces of Canada subsequent to the date
of this prospectus and prior to 25 months from the date hereof shall be deemed
to be incorporated by reference into this prospectus. The documents are
available through the internet on the System for Electronic Document Analysis
and Retrieval (SEDAR) which can be accessed at www.sedar.com.
To the extent that any document or information incorporated by reference
into this prospectus is included in a report that is filed with or furnished to
the SEC on Form 40-F, 10-K, 10-Q, 8-K or 6-K (or any respective successor form),
such document or information shall also be deemed to be incorporated by
reference as an exhibit to the registration statement on Form F-9 of which this
prospectus forms a part. In addition, we may incorporate by reference into this
prospectus from documents that we file with or furnish to the SEC pursuant to
Section 13(a) or 15(d) of the EXCHANGE ACT. Our U.S. filings since November 4,
2002 are electronically available from the SEC's Electronic Document Gathering
and Retrieval System, which is commonly known by the acronym EDGAR and may be
accessed at www.sec.gov.
A prospectus supplement containing the specific variable terms of an
offering of debt securities will be delivered to purchasers of such debt
securities together with this prospectus and will be deemed to be incorporated
by reference into this prospectus as of the date of such prospectus supplement
and only for the purposes of the offering of the debt securities covered by that
prospectus supplement.
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ANY STATEMENT CONTAINED IN THIS PROSPECTUS OR IN A DOCUMENT INCORPORATED OR
DEEMED TO BE INCORPORATED BY REFERENCE IN THIS PROSPECTUS SHALL BE DEEMED TO BE
MODIFIED OR SUPERSEDED FOR PURPOSES OF THIS PROSPECTUS TO THE EXTENT THAT A
STATEMENT CONTAINED IN THIS PROSPECTUS OR IN ANY OTHER SUBSEQUENTLY FILED
DOCUMENT WHICH ALSO IS OR IS DEEMED TO BE INCORPORATED BY REFERENCE IN THIS
PROSPECTUS MODIFIES OR SUPERSEDES THAT STATEMENT. ANY STATEMENT OR DOCUMENT SO
MODIFIED OR SUPERSEDED SHALL NOT, EXCEPT TO THE EXTENT SO MODIFIED OR
SUPERSEDED, BE INCORPORATED BY REFERENCE AND CONSTITUTE A PART OF THIS
PROSPECTUS.
Upon a new Annual Information Form and related annual financial statements
being filed with, and where required, accepted by, the applicable securities
regulatory authorities during the currency of this prospectus, the previous
Annual Information Form, annual financial statements and the accompanying
management's discussion and analysis and any interim financial statements and
the accompanying management's discussion and analysis, material change reports
and management proxy circulars filed prior to the commencement of the then
current fiscal year will be deemed no longer to be incorporated into this
prospectus for purposes of future offers and sales of debt securities under this
prospectus. Upon interim consolidated financial statements and the accompanying
management's discussion and analysis being filed by us with the applicable
securities regulatory authorities during the currency of this prospectus, all
interim consolidated financial statements and the accompanying management's
discussion and analysis filed prior to the new interim consolidated financial
statements shall be deemed no longer to be incorporated into this prospectus for
purposes of future offers and sales of debt securities under this prospectus.
In addition, you may obtain a copy of the Annual Information Form and other
information mentioned above by writing or calling us at the following address
and telephone number:
Canadian Natural Resources Limited
2500, 855 - 2 Street S.W.
Calgary, Alberta
Canada T2P 4J8
(403) 517-6700
Attention: Secretary
YOU SHOULD RELY ONLY ON THE INFORMATION CONTAINED IN OR INCORPORATED BY
REFERENCE IN THIS PROSPECTUS OR ANY APPLICABLE PROSPECTUS SUPPLEMENT AND ON THE
OTHER INFORMATION INCLUDED IN THE REGISTRATION STATEMENT OF WHICH THIS
PROSPECTUS FORMS A PART. WE HAVE NOT AUTHORIZED ANYONE TO PROVIDE YOU WITH
DIFFERENT OR ADDITIONAL INFORMATION. WE ARE NOT MAKING AN OFFER OF THESE DEBT
SECURITIES IN ANY JURISDICTION WHERE THE OFFER IS NOT PERMITTED BY LAW. YOU
SHOULD NOT ASSUME THAT THE INFORMATION CONTAINED IN OR INCORPORATED BY REFERENCE
IN THIS PROSPECTUS OR ANY APPLICABLE PROSPECTUS SUPPLEMENT IS ACCURATE AS OF ANY
DATE OTHER THAN THE DATE ON THE FRONT OF THE APPLICABLE PROSPECTUS SUPPLEMENT.
FORWARD LOOKING STATEMENTS
This prospectus contains or incorporates by reference forward looking
statements within the meaning of the United States Private Litigation Reform Act
of 1995. All statements other than statements of historical fact included or
incorporated by reference in this prospectus that address activities, events or
developments that we expect or anticipate may or will occur in the future are
forward looking statements, and indicate such things as:
o oil and natural gas reserve quantities and the discounted present value
of future net cash flows from these reserves;
o the amount and nature of our capital expenditures;
o plans for drilling wells;
o prices for oil and natural gas produced;
o timing and amount of future production, forecasts of capital
expenditures and the sources of financing thereof;
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o operating and other costs;
o business strategies and plans of management;
o anticipated benefits and enhanced shareholder value resulting from
prospect development and acquisitions.
Such forward looking statements are subject to risks, uncertainties and
other factors, many of which are beyond our control, including:
o the impact of general economic and business conditions in Canada, the
United States and internationally which will, among other things,
impact demand for and market prices of our products;
o industry conditions, including fluctuations in the price of crude oil
and natural gas, royalties payable in respect of our crude oil and
natural gas production, and changes in governmental regulation of the
crude oil and natural gas industry, including environmental regulation;
o the need to obtain required approvals from regulatory authorities;
o the marketability of oil and natural gas, including the proximity to
and capacity of oil and natural gas pipelines and processing equipment;
o the success of exploration and development activities;
o the timing and success of integrating the business and operations of
acquired companies;
o uncertainty of estimates of oil and natural gas reserves;
o impact of competition, availability and cost of seismic, drilling and
other equipment;
o operating hazards and other difficulties inherent in the exploration
for and production and sale of oil and natural gas;
o fluctuations in foreign exchange or interest rates and stock market
volatility;
o political instability and other risks of international operations; and
o uncertainties inherent in attracting capital;
o risks of war, hostilities, civil insurrection and terrorist threats;
o our ability to replace or expand reserves;
o our ability to either generate sufficient cash flow to meet current
future obligations or to obtain external debt or equity financing;
o our ability to enter into or renew leases;
o the timing and costs of pipeline and gas storage facility construction
and expansion;
o our ability to make capital investments and the amounts thereof;
o imprecision in estimating future production capacity, and the timing,
costs and levels of production and drilling;
o risks associated with existing and potential future lawsuits and
regulatory actions against us;
o uncertainty in amounts and timing of royalty payments; and
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o imprecision in estimating product sales.
Additional factors are described in our management's discussion and
analysis of financial condition and results of operations incorporated by
reference in our Annual Information Form dated March 30, 2005, which is filed
with the securities commissions or similar authorities in the provinces of
Canada and incorporated by reference in this prospectus. Events or circumstances
could cause our actual results to differ materially from those estimated or
projected and expressed in, or implied by, these forward looking statements. You
should also carefully consider the matters discussed under "Risk Factors" in
this prospectus.
DEFINITIONS
In this prospectus and in any applicable prospectus supplement:
o "Boe" means barrels of oil equivalent; and
o "NGLs" means natural gas liquids.
This prospectus contains disclosure respecting oil and gas production
expressed as "cubic feet of natural gas equivalent" and "barrels of oil
equivalent" or "boe". All equivalency volumes have been derived using the ratio
of six thousand cubic feet of natural gas to one barrel of oil. Equivalency
measures may be misleading, particularly if used in isolation. A conversion
ratio of six thousand cubic feet of natural gas to one barrel of oil is based on
an energy equivalence conversion method primarily applicable at the burner tip
and does not represent a value equivalency at the wellhead.
CANADIAN NATURAL RESOURCES LIMITED
We are a Canadian-based senior, independent energy company engaged in the
acquisition, exploration, development, production, marketing and sale of crude
oil and natural gas. Our core areas of operations are in the Western Canadian
Sedimentary Basin, the United Kingdom sector of the North Sea and Offshore West
Africa. Our head and principal office is located at 2500, 855 - 2 Street SW,
Calgary, Alberta, T2P 4J8.
Our common shares are listed for trading on the Toronto Stock Exchange and
on the New York Stock Exchange under the trading symbol "CNQ".
USE OF PROCEEDS
Unless otherwise indicated in an applicable prospectus supplement relating
to a series of debt securities, we will use the net proceeds we receive from the
sale of the debt securities for general corporate purposes relating to our
primary areas of operations in North America, the North Sea and Offshore West
Africa, which may include financing our capital expenditure program and working
capital requirements in those areas. We may also use the net proceeds for the
repayment of indebtedness. Pending such use of any proceeds, we may invest funds
in short-term marketable securities.
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INTEREST COVERAGE
The following coverage ratios have been prepared in accordance with
Canadian securities law requirements and are included in this prospectus in
accordance with Canadian disclosure requirements.
The following coverage ratios are calculated on a consolidated basis for
the twelve month periods ended March 31, 2005 and December 31, 2004. The
following ratios do not give effect to the issue of any debt securities pursuant
to this prospectus.
MARCH 31, 2005 DECEMBER 31, 2004
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Interest coverage on long-term debt (times):
Net earnings(1) .......................... 6.8 11.5
NOTE:
(1) Interest coverage on long-term debt on an earnings basis is equal to
net earnings plus income taxes and interest expense, divided by
interest expense.
DESCRIPTION OF DEBT SECURITIES
In this section, "we", "us", "our" or "Canadian Natural" refers only to
Canadian Natural Resources Limited without its subsidiaries or interest in
partnerships and other entities. The following describes certain general terms
and provisions of the debt securities. The particular terms and provisions of
the series of debt securities offered by any prospectus supplement, and the
extent to which the general terms and provisions described below may apply to
them, will be described in the applicable prospectus supplement. Accordingly,
for a description of the terms of a particular series of debt securities,
reference must be made to both the applicable prospectus supplement relating to
them and the description of the debt securities set forth in this prospectus.
The debt securities will be issued under a trust indenture (the
"Indenture") dated July 24, 2001 between us and The Bank of Nova Scotia Trust
Company of New York, as trustee (the "Trustee"). The Indenture is subject to and
governed by the United States Trust Indenture Act of 1939, as amended. A copy of
the form of the Indenture has been filed with the SEC as an exhibit to the
registration statement of which this prospectus is a part. The following
summaries of the Indenture and the debt securities are brief summaries of
certain provisions of the Indenture and do not purport to be complete; these
statements are subject to the detailed referenced provisions of the Indenture,
including the definition of capitalized terms used under this caption. Wherever
particular sections or defined terms of the Indenture are referred to, these
sections or defined terms are incorporated in this prospectus by reference as
part of the statement made, and the statement is qualified in its entirety by
the reference to the Indenture. References in parentheses are to section numbers
in the Indenture.
GENERAL
The Indenture does not limit the aggregate principal amount of debt
securities (which may include debentures, notes and other unsecured evidences of
indebtedness) that may be issued under the Indenture, and provides that debt
securities may be issued from time to time in one or more series and may be
denominated and payable in foreign currencies. The debt securities offered
pursuant to this prospectus will be issued in an amount up to US$2,000,000,000
or the equivalent. The Indenture also permits us to increase the principal
amount of any series of debt securities previously issued and to issue that
increased principal amount.
The applicable prospectus supplement will contain a description of the
following terms relating to the debt securities being offered:
(a) the title of the debt securities of such series;
(b) any limit on the aggregate principal amount of the debt securities of
such series;
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(c) the date or dates, if any, on which the principal (and premium, if any)
of the debt securities of such series will mature and the portion (if
less than all of the principal amount) of the debt securities of such
series to be payable upon declaration of acceleration of maturity
and/or the method by which such date or dates shall be determined;
(d) the rate or rates (which may be fixed or variable) at which the debt
securities of such series will bear interest, if any, the date or dates
from which that interest will accrue and on which that interest will be
payable and the Regular Record Dates for any interest payable on the
debt securities of such series which are Registered Securities and/or
the method by which such date or dates shall be determined;
(e) if applicable, any mandatory or optional redemption or sinking fund
provisions, including the period or periods within which, the price or
prices at which and the terms and conditions upon which the debt
securities of such series may be redeemed or purchased at the option of
Canadian Natural or otherwise;
(f) if applicable, whether the debt securities of such series will be
issuable in registered form or bearer form or both, and, if issuable in
bearer form, the restrictions as to the offer, sale and delivery of the
debt securities of such series in bearer form and as to exchanges
between registered and bearer form;
(g) whether the debt securities of such series will be issuable in the form
of one or more Registered Global Securities and, if so, the identity of
the Depository for those Registered Global Securities;
(h) the denominations in which any of the debt securities of such series
which are in registered form will be issuable, if other than
denominations of US$1,000 and any multiple thereof, and the
denominations in which any of the debt securities of such series which
are in bearer form will be issuable, if other than the denomination of
US$1,000;
(i) each office or agency where the principal of and any premium and
interest on the debt securities of such series will be payable, and
each office or agency where the debt securities of such series may be
presented for registration of transfer or exchange;
(j) if other than United States dollars, the foreign currency or the units
based on or relating to foreign currencies in which the debt securities
of such series are denominated and/or in which the payment of the
principal of and any premium and interest on the debt securities of
such series will or may be payable;
(k) any index pursuant to which the amount of payments of principal of and
any premium and interest on the debt securities of such series will or
may be determined;
(l) any applicable Canadian and U.S. federal income tax consequences;
(m) whether and under what circumstances we will pay Additional Amounts on
the debt securities of such series in respect of certain taxes (and the
terms of any such payment) and, if so, whether we will have the option
to redeem the debt securities of such series rather than pay the
Additional Amounts (and the terms of any such option);
(n) any deletions from, modifications of or additions to the Events of
Default or covenants of Canadian Natural with respect to such debt
securities, whether or not such Events of Default or covenants are
consistent with the Events of Default or covenants set forth herein;
and
(o) any other terms of the debt securities of such series.
Unless otherwise indicated in the applicable prospectus supplement, the
Indenture does not afford the Holders the right to tender debt securities to us
for repurchase, or provide for any increase in the rate or rates of interest per
annum at which the debt securities will bear interest, in the event we become
involved in a highly leveraged transaction or in the event that we undergo a
change in control.
Debt securities may be issued under the Indenture bearing no interest or
interest at a rate below the prevailing market rate at the time of issuance and
may be offered and sold at a discount below their stated principal amount. The
Canadian and U.S. federal income tax consequences and other special
considerations applicable to those
8
discounted debt securities or other debt securities offered and sold at par
which are treated as having been issued at a discount for Canadian and/or U.S.
federal income tax purposes will be described in the prospectus supplement
relating to the debt securities.
RANKING AND OTHER INDEBTEDNESS
The debt securities will be unsecured obligations of ours and, unless
otherwise provided in the prospectus supplement relating to such debt
securities, will rank PARI PASSU with all our other unsecured and unsubordinated
debt from time to time outstanding and PARI PASSU with other debt securities
issued under the Indenture. The debt securities will be structurally
subordinated to all existing and future liabilities of any of our corporate or
partnership subsidiaries, including trade payables and other indebtedness.
REGISTERED GLOBAL SECURITIES
Unless otherwise indicated in a prospectus supplement, a series of debt
securities will be issued in the form of one or more Registered Global
Securities which will be registered in the name of and be deposited with a
Depository, or its nominee, each of which will be identified in the prospectus
supplement relating to that series. Unless and until exchanged, in whole or in
part, for debt securities in definitive registered form, a Registered Global
Security may not be transferred except as a whole by the Depository for a
Registered Global Security to a nominee of that Depository, by a nominee of that
Depository to that Depository or another nominee of that Depository or by that
Depository or any nominee of that Depository to a successor of that Depository
or a nominee of a successor of that Depository.
The specific terms of the depository arrangement with respect to any
portion of a particular series of debt securities to be represented by a
Registered Global Security will be described in the prospectus supplement
relating to that series. Canadian Natural anticipates that the following
provisions will apply to all depository arrangements.
Upon the issuance of a Registered Global Security, the Depository or its
nominee will credit, on its book entry and registration system, the respective
principal amounts of the debt securities represented by that Registered Global
Security to the accounts of those persons having accounts with that Depository
or its nominee ("participants") as shall be designated by the underwriters,
investment dealers or agents participating in the distribution of those debt
securities or by us if those debt securities are offered and sold directly by
us. Ownership of beneficial interests in a Registered Global Security will be
limited to participants or persons that may hold beneficial interests through
participants. Ownership of beneficial interests in a Registered Global Security
will be shown on, and the transfer of the ownership of those beneficial
interests will be effected only through, records maintained by the Depository
therefor or its nominee (with respect to beneficial interests of participants)
or by participants or persons that hold through participants (with respect to
interests of persons other than participants).
The laws of some states in the United States require certain purchasers of
securities to take physical delivery of the debt securities in definitive form.
These depository arrangements and these laws may impair the ability to transfer
beneficial interests in a Registered Global Security.
So long as the Depository for a Registered Global Security or its nominee
is the registered owner of the debt securities, that Depository or its nominee,
as the case may be, will be considered the sole owner or Holder of the debt
securities represented by that Registered Global Security for all purposes under
the Indenture. Except as provided below, owners of beneficial interests in a
Registered Global Security will not be entitled to have debt securities of the
series represented by that Registered Global Security registered in their names,
will not receive or be entitled to receive physical delivery of debt securities
of that series in definitive form and will not be considered the owners or
Holders of those debt securities under the Indenture.
Principal, premium, if any, and interest payments on a Registered Global
Security registered in the name of a Depository or its nominee will be made to
that Depository or nominee, as the case may be, as the registered owner of that
Registered Global Security. Neither we, the Trustee nor any paying agent for
debt securities of the series represented by that Registered Global Security
will have any responsibility or liability for any aspect of the records relating
to or payments made on account of beneficial interests in that Registered Global
Security or for maintaining, supervising or reviewing any records relating to
those beneficial interests.
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We expect that the Depository for a Registered Global Security or its
nominee, upon receipt of any payment of principal, premium or interest, will
immediately credit participants' accounts with payments in amounts proportionate
to their respective beneficial interests in the principal amount of that
Registered Global Security as shown on the records of that Depository or its
nominee. We also expect that payments by participants to owners of beneficial
interests in that Registered Global Security held through those participants
will be governed by standing instructions and customary practices, as is the
case with securities held for the accounts of customers registered in "street
name", and will be the responsibility of those participants.
If the Depository for a Registered Global Security representing debt
securities of a particular series is at any time unwilling or unable to continue
as Depository, or if the Depository is no longer eligible to continue as
Depository, and a successor Depository is not appointed by us within 90 days, or
if an Event of Default described in clauses (a) or (b) of the first sentence
under "Events of Default" below with respect to a particular series of debt
securities has occurred and is continuing, we will issue Registered Securities
of that series in definitive form in exchange for that Registered Global
Security. In addition, we may at any time and in its sole discretion determine
not to have the debt securities of a particular series represented by one or
more Registered Global Securities and, in that event, will issue Registered
Securities of that series in definitive form in exchange for all of the
Registered Global Securities representing debt securities of that series.
DEBT SECURITIES IN DEFINITIVE FORM
If indicated in an applicable prospectus supplement, the debt securities
may be issued in definitive form without coupons. Debt securities in definitive
form may be presented for exchange and for registration of transfer in the
manner, at the places and, subject to the restrictions set forth in the
Indenture and in the applicable prospectus supplement, without service charge,
but upon payment of any taxes or other governmental charges due in connection
therewith. We have appointed the Trustee as Security Registrar. Debt securities
in bearer form and the coupons appertaining thereto, if any, will be
transferable by delivery.
Unless otherwise indicated in the applicable prospectus supplement, payment
of the principal of and any premium and interest on debt securities in
definitive form will be made at the office or agency of the Trustee at One
Liberty Plaza, New York, New York 10006, except that, at our option, payment of
any interest may be made (a) by check mailed to the address of the Person
entitled thereto as that Person's address will appear in the Security Register
or (b) by wire transfer to an account maintained by the Person entitled thereto
as specified in the Security Register.
NEGATIVE PLEDGE
The Indenture includes our covenant that, so long as any of the debt
securities remain outstanding, we will not, and will not permit any Subsidiary
to, create, assume or otherwise have outstanding any Security Interest, except
for Permitted Encumbrances, on or over its or their respective assets (present
or future) securing any Indebtedness of any Person without also at the same time
or prior to that time securing equally and ratably with other Indebtedness all
of the debt securities then Outstanding under the Indenture.
CERTAIN DEFINITIONS
Set forth below is a summary of certain of the defined terms used in the
Indenture. Reference is made to the Indenture for the full definitions of all
such terms.
The term "CAPITAL LEASE OBLIGATION" means the obligation of a Person, as
lessee, to pay rent or other amounts to the lessor under a lease of real or
personal property which is required to be classified and accounted for as a
capital lease on a consolidated balance sheet of such Person in accordance with
GAAP.
The term "CONSOLIDATED NET TANGIBLE ASSETS" means the total amount of
assets on a consolidated basis (less applicable reserves and other properly
deductible items) after deducting therefrom:
(a) all current liabilities (excluding any current liabilities which are by
their terms extendible or renewable at the option of the obligor
thereon to a time more than 12 months after the time as of which the
amount thereof is being computed);
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(b) all goodwill, trade names, trademarks, patents, unamortized debt
discount and expense and other like intangibles (and for greater
certainty does not include deferred foreign exchange gains or losses on
long-term monetary items); and
(c) appropriate adjustments on account of minority interests of other
Persons holding stock of our Subsidiaries,
all as set forth on our most recent quarterly balance sheet and our consolidated
Subsidiaries and computed in accordance with GAAP.
The term "CURRENT ASSETS" means current assets as determined in accordance
with GAAP.
The term "FINANCIAL INSTRUMENT OBLIGATIONS" means obligations arising
under:
(a) interest rate swap agreements, forward rate agreements, floor, cap or
collar agreements, futures or options, insurance or other similar
agreements or arrangements, or any combination thereof, entered into by
a Person of which the subject matter is interest rates or pursuant to
which the price, value or amount payable thereunder is dependent or
based upon interest rates in effect from time to time or fluctuations
in interest rates occurring from time to time;
(b) currency swap agreements, cross-currency agreements, forward
agreements, floor, cap or collar agreements, futures or options,
insurance or other similar agreements or arrangements, or any
combination thereof, entered into by a Person of which the subject
matter is currency exchange rates or pursuant to which the price, value
or amount payable thereunder is dependent or based upon currency
exchange rates in effect from time to time or fluctuations in currency
exchange rates occurring from time to time; and
(c) commodity swap or hedging agreements, floor, cap or collar agreements,
commodity futures or options or other similar agreements or
arrangements, or any combination thereof, entered into by a Person of
which the subject matter is one or more commodities or pursuant to
which the price, value or amount payable thereunder is dependent or
based upon the price of one or more commodities in effect from time to
time or fluctuations in the price of one or more commodities occurring
from time to time.
The term "GAAP" means generally accepted accounting principles which are in
effect from time to time in Canada.
The term "INDEBTEDNESS" means at any time, and whether or not contingent,
all items of indebtedness in respect of any amounts borrowed which, in
accordance with GAAP, would be recorded as indebtedness in the consolidated
financial statements of Canadian Natural as at the date as of which Indebtedness
is to be determined, and in any event including, without duplication (i) any
obligation for borrowed money, (ii) any obligation evidenced by bonds,
debentures, notes, guarantees or other similar instruments, including, without
limitation, any such obligations incurred in connection with the acquisition of
property, assets or businesses, (iii) any Purchase Money Obligation, (iv) any
reimbursement obligation with respect to letters of credit, bankers' acceptances
or similar facilities, (v) any obligation issued or assumed as the deferred
purchase price of property or services, (vi) any Capital Lease Obligation, (vii)
any obligation to pay rent or other payment amounts with respect to any Sale and
Leaseback Transaction, (viii) any payment obligation under Financial Instrument
Obligations at the time of determination, (ix) any indebtedness in respect of
any amounts borrowed or any Purchase Money Obligation secured by any Security
Interest existing on property owned subject to such Security Interest, whether
or not the indebtedness or Purchase Money Obligation secured thereby shall have
been assumed and (x) guarantees, indemnities, endorsements (other than
endorsements for collection in the ordinary course of business) or other
contingent liabilities in respect of obligations of another Person for
indebtedness of that other Person in respect of any amounts borrowed by that
other Person.
The term "PERMITTED ENCUMBRANCES" means any of the following:
(a) any Security Interest existing as of the date of the first issuance by
us of the debt securities issued pursuant to the Indenture;
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(b) any Security Interest on pipelines, pumping stations or other pipeline
facilities, drilling equipment, production equipment and platforms;
tank cars, tankers, barges, ships, trucks, automobiles, airplanes or
other marine, automotive, aeronautical or other similar moveable
facilities or equipment, computer systems and associated programs;
office equipment; weather stations; townsites; housing facilities,
recreation halls, stores and other related facilities; gasification or
natural gas liquefying facilities and burning towers, flares or stacks;
retail service stations, bulk plants, storage facilities, terminals or
warehouses; or similar facilities and equipment of or associated with
any of the foregoing; provided, in each case, that such Security
Interest is incurred to finance the acquisition of such property or
assets within 90 days after such acquisition and such Security Interest
shall be limited to the specified property or assets being financed;
(c) (i) any Security Interest on any specific properties or any interest
therein, construction thereon or improvement thereto, and on any
receivables, inventory, equipment, chattel paper, contract rights,
intangibles and other assets, rights or collateral specifically
connected with such properties, incurred (A) to secure all or any part
of the financing for acquisition, surveying, exploration, drilling,
extraction, development, operation, production, construction,
alteration, repair or improvement of, in, under or on such properties
and the plugging and abandonment of wells located thereon (it being
understood that, in the case of oil and natural gas producing
properties (including oil sands properties), or any interest therein,
financing incurred for "development" shall include financing incurred
for all facilities relating to such properties or to projects, ventures
or other arrangements of which such properties form a part or which
relate to such properties or interests), or (B) for acquiring ownership
of any Person which owns any such property or interest therein,
provided that such Security Interest is limited to such property or
such interest therein owned by any such Person; and (ii) any Security
Interest on an oil and/or natural gas producing property (including oil
sands properties) to secure Indebtedness incurred in connection with or
necessarily incidental to commitments for the purchase or sale of, or
the transportation or distribution of, the products derived from such
property;
(d) any Security Interest in favor of Canadian Natural or any of its
wholly-owned Subsidiaries;
(e) any Security Interest existing on the property of any Person at the
time such Person becomes a Subsidiary, or arising thereafter pursuant
to contractual commitments entered into prior to and not in
contemplation of such Person becoming a Subsidiary;
(f) any Security Interest on property of a Person which Security Interest
exists at the time such Person is merged into, or amalgamated or
consolidated with, Canadian Natural or a Subsidiary, or such property
is otherwise acquired by Canadian Natural or a Subsidiary, provided
such Security Interest does not extend to property owned by Canadian
Natural or such Subsidiary immediately prior to such merger,
amalgamation, consolidation or acquisition;
(g) any Security Interest on Current Assets securing any Indebtedness to
any bank or banks or other lending institution or institutions incurred
in the ordinary course of business and for the purpose of carrying on
the same, repayable on demand or maturing within 12 months of the date
when such Indebtedness is incurred or the date of any renewal or
extension thereof, provided that such security is given at the time
that the Indebtedness is incurred;
(h) any Security Interest in respect of (i) liens for taxes and assessments
not at the time overdue or any liens securing workmen's compensation
assessments, unemployment insurance or other social security
obligations; provided, however, that if any such liens, duties or
assessments are then overdue, Canadian Natural or the Subsidiary, as
the case may be, shall be prosecuting an appeal or proceedings for
review with respect to which it shall have secured a stay in the
enforcement of any such obligations, (ii) any liens for specified taxes
and assessments which are overdue but the validity of which is being
contested at the time by Canadian Natural or the Subsidiary, as the
case may be, in good faith, and with respect to which Canadian Natural
or the Subsidiary shall have secured a stay of enforcement thereof, if
applicable, (iii) any liens or rights of distress reserved in or
exercisable under any lease for rent and for compliance with the terms
of such lease, (iv) any obligations or duties, affecting the property
of Canadian Natural or that of a Subsidiary to any municipality or
governmental, statutory or public authority, with respect to any
franchise, grant, license, lease or permit and any defects in title to
structures or other facilities arising solely from the fact that such
structures or facilities are constructed or installed on lands held by
Canadian Natural or the
12
Subsidiary under government permits, licenses, leases or other grants,
which obligations, duties and defects in the aggregate do not
materially impair the use of such property, structures or facilities
for the purpose for which they are held by Canadian Natural or the
Subsidiary, (v) any deposits or liens in connection with contracts,
bids, tenders or expropriation proceedings, surety or appeal bonds,
costs of litigation when required by law, public and statutory
obligations, liens or claims incidental to current construction,
builders', mechanics', laborers', materialmen's, warehousemen's,
carrier's and other similar liens, (vi) the right reserved to or vested
in any municipality or governmental or other public authority by any
statutory provision or by the terms of any lease, license, franchise,
grant or permit, that affects any land, to terminate any such lease,
license, franchise, grant or permit or to require annual or other
periodic payments as a condition to the continuance thereof, (vii) any
Security Interest the validity of which is being contested at the time
by Canadian Natural or a Subsidiary in good faith or payment of which
has been provided for by deposit with the Trustee of an amount in cash
sufficient to pay the same in full, (viii) any easements, rights-of-way
and servitudes (including, without in any way limiting the generality
of the foregoing, easements, rights-of-way and servitudes for railways,
sewers, dykes, drains, pipelines, natural gas and water mains or
electric light and power or telephone conduits, poles, wires and
cables) that, in the opinion of Canadian Natural, will not in the
aggregate materially and adversely impair the use or value of the land
concerned for the purpose for which it is held by Canadian Natural or
the Subsidiary, as the case may be, (ix) any security to a public
utility or any municipality or governmental or other public authority
when required by such utility or other authority in connection with the
operations of Canadian Natural or the Subsidiary, as the case may be,
and (x) any liens and privileges arising out of judgments or awards
with respect to which Canadian Natural or the Subsidiary shall be
prosecuting an appeal or proceedings for review and with respect to
which it shall have secured a stay of execution pending such appeal or
proceedings for review;
(i) any Security Interest arising under partnership agreements, oil and
natural gas leases, overriding royalty agreements, net profits
agreements, production payment agreements, royalty trust agreements,
master limited partnership agreements, farm-out agreements, division
orders, contracts for the sale, purchase, exchange, transportation,
gathering or processing of oil, natural gas or other hydrocarbons or
by-product thereof, unitizations and pooling designations,
declarations, orders and agreements, development agreements, operating
agreements, production sales contracts (including security in respect
of take or pay or similar obligations thereunder), area of mutual
interest agreements, natural gas balancing or deferred production
agreements, injection, repressuring and recycling agreements, salt
water or other disposal agreements, seismic or geophysical permits or
agreements, which in each of the foregoing cases is customary in the
oil and natural gas business, and other agreements which are customary
in the oil and natural gas business, provided in all instances that
such Security Interest is limited to the assets that are the subject of
the relevant agreement;
(j) any Security Interest on cash or marketable securities of Canadian
Natural or any Subsidiary granted in the ordinary course of business in
connection with Financial Instrument Obligations;
(k) any Security Interest in respect of the sale (including any forward
sale) or other transfer, in the ordinary course of business, of (i)
oil, natural gas, other hydrocarbons or by-product thereof, or other
minerals, whether in place or when produced, for a period of time
until, or in an amount such that, the purchaser will realize therefrom
a specified amount of money (however determined) or a specified amount
of such minerals and (ii) any other interests in property of a
character commonly referred to as a "production payment";
(l) any extension, renewal, alteration or replacement (or successive
extensions, renewals, alterations or replacements) in whole or in part,
of any Security Interest referred to in the foregoing clauses (a)
through (k) inclusive, provided the principal amount thereof is not
increased and provided that such extension, renewal, alteration or
replacement shall be limited to all or a part of the property or other
assets which secured the Security Interest so extended, renewed,
altered or replaced (plus improvements on such property or other
assets); and
(m) any Security Interests that would otherwise be prohibited (including
any extensions, renewals, alterations or replacements thereof) provided
that the aggregate Indebtedness outstanding and secured under this
13
clause (m) does not (calculated at the time of the granting of the
Security Interest) exceed an amount equal to 10 percent of Consolidated
Net Tangible Assets.
The term "PERSON" means any individual, corporation, limited liability
company, partnership, association, joint-stock company, trust, unincorporated
organization or government or any agency or political subdivision thereof.
The term "PURCHASE MONEY OBLIGATION" means any monetary obligation created
or assumed as part of the purchase price of real or tangible personal property,
whether or not secured, any extensions, renewals or refundings of any such
obligation, provided that the principal amount of such obligation on the date of
such extension, renewal or refunding is not increased and further provided that
any security given in respect of such obligation shall not extend to any
property other than the property acquired in connection with which such
obligation was created or assumed and fixed improvements, if any, thereto or
erected or constructed thereon.
The term "SALE AND LEASEBACK TRANSACTION" means any direct or indirect
arrangement (excluding, however, any such arrangement between Canadian Natural
and a Subsidiary or between one or more Subsidiaries) pursuant to which property
is sold or transferred and is thereafter leased back from the purchaser or
transferee thereof.
The term "SECURITY INTEREST" means any security by way of an assignment,
mortgage, charge, pledge, lien, encumbrance, title retention agreement or other
security interest whatsoever, howsoever created or arising, whether absolute or
contingent, fixed or floating, perfected or not; however, for purposes of the
"Negative Pledge" covenant only, such term shall not include any encumbrance
that may be deemed to arise solely as a result of entering into an agreement,
not in violation of the terms of the Indenture, to sell or otherwise transfer
assets or property.
The term "SHAREHOLDERS' EQUITY" means, with respect to any Person, at any
date, the aggregate of the Dollar amount of outstanding share capital, the
amount, without duplication, of any surplus, whether contributed or capital, and
retained earnings, subject to any currency translation adjustment, all as set
forth in such Person's most recent annual consolidated balance sheet.
The term "SIGNIFICANT SUBSIDIARY" means a Subsidiary that constitutes a
"significant subsidiary" as defined in Rule 1-02 of Regulation S-X of the
Exchange Act.
The term "SUBSIDIARY" means any corporation or other Person of which there
are owned, directly or indirectly, by or for Canadian Natural or by or for any
corporation or other Person in like relation to Canadian Natural, Voting Shares
or other interests which, in the aggregate, entitle the holders thereof to cast
more than 50 percent of the votes which may be cast by the holders of all
outstanding Voting Shares of such first mentioned corporation or other Person
for the election of its directors or, in the case of any Person which is not a
corporation, Persons having similar powers or (if there are no such persons)
entitle the holders thereof to more than 50 percent of the income or capital
interests (however called) thereon and includes any corporation in like relation
to a Subsidiary; provided, however, that such term will not include, for
purposes of the "Negative Pledge" covenant only, any Subsidiary if the assets of
the Subsidiary do not at the time exceed 2 percent of Consolidated Net Tangible
Assets.
The term "VOTING SHARES" means shares of capital stock of any class of a
corporation and other interests of any other Persons having under all
circumstances the right to vote for the election of the directors of such
corporation or in the case of any Person which is not a corporation, Persons
having similar powers or (if there are no such Persons) income or capital
interests (however called), provided that, for the purpose of this definition,
shares or other interests which only carry the right to vote conditionally on
the happening of an event shall not be considered Voting Shares whether or not
such event shall have happened.
EVENTS OF DEFAULT
The occurrence of any of the following events with respect to the debt
securities of any series will constitute an "Event of Default" with respect to
the debt securities of that series:
(a) default by Canadian Natural in payment of all or any part of the
principal of any of the debt securities of that series when the same
becomes due under any provision of the Indenture or of those debt
securities;
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(b) default by Canadian Natural in payment of any interest due on any of
the debt securities of that series, or Additional Amounts on any of the
debt securities of that series when they become due and payable, and
continuance of that default for a period of 30 days;
(c) default by Canadian Natural in observing or performing any of the
covenants described below under "Consolidation, Merger, Amalgamation
and Sale of Assets";
(d) default by Canadian Natural in observing or performing any other of its
covenants or conditions contained in the Indenture or in the debt
securities of that series and continuance of that default for a period
of 60 days after written notice as provided in the Indenture;
(e) default by Canadian Natural or any Subsidiary in payment of the
principal of, premium, if any, or interest on any Indebtedness for
borrowed money having an outstanding principal amount in excess of the
greater of $75 million and 2 percent of the Shareholders' Equity of
Canadian Natural in the aggregate at the time of default or default in
the performance of any other covenant of Canadian Natural or any
Subsidiary contained in any instrument under which that indebtedness is
created or issued and the holders thereof, or a trustee, if any, for
those holders, declare that indebtedness to be due and payable prior to
the stated maturities of that indebtedness ("accelerated
indebtedness"), and such acceleration shall not be rescinded or
annulled, or such default under such instrument shall not be remedied
or cured, whether by payment or otherwise, or waived by the holders of
such indebtedness, provided that if such accelerated indebtedness is
the result of an event of default which is not related to the failure
to pay principal or interest on the terms, at the times and on the
conditions set forth in such instrument, it will not be considered an
Event of Default under this clause (e) until 15 days after such
acceleration;
(f) certain events of bankruptcy, insolvency, winding up, liquidation or
dissolution relating to Canadian Natural or any Significant Subsidiary;
(g) the taking or entry of certain judgments or decrees against Canadian
Natural or any Subsidiary for the payment of money in excess of the
greater of $75 million and 2 percent of the Shareholders' Equity of
Canadian Natural in the aggregate, if Canadian Natural or such
Subsidiary, as the case may be, fails to file an appeal or, if Canadian
Natural or such Subsidiary, as the case may be, does file an appeal,
that judgment or decree is not and does not remain vacated, discharged
or stayed as provided in the Indenture; or
(h) any other Event of Default provided with respect to debt securities of
that series.
If an Event of Default described in clause (a) or (b) above occurs and is
continuing with respect to debt securities of any series, unless the principal
of all of the debt securities of that series shall have already become due and
payable, the Trustee may, in its discretion, and shall upon request in writing
made by the Holders of not less than 25 percent in aggregate principal amount of
the debt securities of that series then Outstanding, declare the principal of
(and premium, if any, on) all the debt securities of that series then
Outstanding and the interest accrued thereon and all other money, if any, owing
under the provisions of the Indenture in respect of those debt securities to be
due and payable immediately on demand. If an Event of Default described in
clause (d) or (h) above occurs and is continuing with respect to the debt
securities of one or more series, unless the principal of all of the debt
securities of the affected series shall have already become due and payable, the
Trustee may, in its discretion, and shall upon request in writing made by the
Holders of not less than 25 percent in aggregate principal amount of the debt
securities of all such affected series then Outstanding (voting as one class),
declare the principal of (and premium, if any, on) all the debt securities of
all the affected series then Outstanding and the interest accrued thereon and
all other money, if any, owing under the provisions of the Indenture in respect
of those debt securities to be due and payable immediately on demand. If an
Event of Default described in clause (c), (e), (f) or (g) above occurs and is
continuing, unless the principal of all debt securities then Outstanding shall
have already become due and payable, the Trustee may, in its discretion, and
shall upon request in writing made by the Holders of not less than 25 percent in
aggregate principal amount of all the debt securities then Outstanding (voting
as one class), declare the principal of (and premium, if any, on) all the debt
securities then Outstanding and the interest accrued thereon and all other
money, if any, owing under the provisions of the Indenture in respect of those
debt securities to be due and payable immediately on demand.
15
Upon certain conditions, any declaration of this kind may be cancelled if
all Events of Default with respect to the debt securities of all those affected
series then Outstanding shall have been cured or waived as provided in the
Indenture by the Holders of not less than a majority in aggregate principal
amount of the debt securities of the affected series then Outstanding (voting as
one class, except in the case of Events of Default described in clauses (a) and
(b) of the first sentence of the preceding paragraph, as to which each series so
affected will vote as a separate class). See "Modification and Waiver" below.
Reference is made to the applicable prospectus supplement or supplements
relating to any series of Original Issue Discount Securities for the particular
provisions relating to the acceleration of a portion of the principal amount
thereof upon the occurrence and continuance of an Event of Default with respect
thereto.
The Indenture provides that the Trustee will be under no obligation to
exercise any of its rights or powers under the Indenture at the request or
direction of the Holders, unless those Holders shall have provided to the
Trustee reasonable indemnity. Subject to those provisions for indemnity and
certain other limitations contained in the Indenture, the Holders of a majority
in aggregate principal amount of the debt securities of all affected series then
Outstanding (voting as one class) will have the right to direct the time, method
and place of conducting any proceeding for any remedy available to the Trustee,
or exercising any trust or power conferred on the Trustee, with respect to the
debt securities of those affected series.
The Indenture provides that no Holder of the debt securities of any series
will have any right to institute any proceeding with respect to the Indenture or
for any remedy thereunder, unless (a) that Holder shall have previously given to
the Trustee written notice of a continuing Event of Default with respect to the
debt securities of that series, (b) the Holders of not less than 25 percent in
aggregate principal amount of the debt securities of all affected series then
Outstanding (voting as one class) shall have made written request, and provided
reasonable indemnity, to the Trustee to institute that proceeding, (c) the
Trustee shall have failed to institute that proceeding within 60 days after that
notification, request and offer of indemnity and (d) the Trustee shall not have
received from the Holders of a majority in aggregate principal amount of the
debt securities of all affected series then Outstanding (voting as one class) a
direction inconsistent with that request during such 60 day period. However, the
Holder of any Security will have an absolute right to receive payment of the
principal of and any premium and interest on that Security on or after the due
dates expressed in that Security and to institute suit for the enforcement of
any of these payments. The Indenture requires Canadian Natural to furnish to the
Trustee annually an Officers' Certificate as to the compliance by Canadian
Natural with certain covenants, conditions or other requirements contained in
the Indenture and as to any non-compliance therewith.
The Indenture provides that the Trustee may withhold notice to the Holders
of the debt securities of one or more series of any default affecting those
series (except defaults as to payment of principal or interest) if it, in good
faith, considers that withholding to be in the best interests of the Holders of
the debt securities of those series.
CONSOLIDATION, MERGER, AMALGAMATION AND SALE OF ASSETS
Canadian Natural shall not enter into any transaction (whether by way of
reorganization, reconstruction, consolidation, amalgamation, merger, lease,
transfer, sale or otherwise) whereby all or substantially all of its assets
would become the property of any other Person (the "Successor Corporation")
unless (a) the Successor Corporation shall, prior to or contemporaneously with
the consummation of that transaction, execute those instruments, which may
include a supplemental indenture, and do those things as shall be necessary or
advisable to establish that upon the consummation of that transaction (i) the
Successor Corporation will have assumed all of the covenants and obligations of
Canadian Natural under the Indenture in respect of the debt securities of every
series, and (ii) the debt securities of every series will be valid and binding
obligations of the Successor Corporation entitling the Holders thereof, as
against the Successor Corporation, to all the rights of Holders of debt
securities under the Indenture; (b) the Successor Corporation is a corporation,
partnership, or trust organized and validly existing under the laws of Canada or
any province thereof or of the United States, any state thereof or the District
of Columbia, (c) Canadian Natural has delivered to the Trustee, within 60 days
thereof, an Officer's Certificate and an Opinion of Counsel each stating that
such transaction and such supplemental indenture comply with this covenant and
all conditions precedent to Section 7.1 relating to such transaction have been
complied with, and (d) immediately before and after giving effect to such
transaction, no Event of Default, and no event which, after notice or lapse of
time or both, would become an Event of Default, shall have occurred and be
continuing.
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ADDITIONAL AMOUNTS
Unless otherwise specified in the applicable prospectus supplement, all
payments made by Canadian Natural under or with respect to the debt securities
will be made free and clear of and without withholding or deduction for or on
account of any present or future tax, duty, levy, impost, assessment or other
governmental charge (including penalties, interest and other liabilities related
thereto) imposed or levied by or on behalf of the Government of Canada or of any
province or territory thereof or by any authority or agency therein or thereof
having power to tax (hereinafter "Canadian Taxes"), unless Canadian Natural is
required to withhold or deduct Canadian Taxes by law or by the interpretation or
administration thereof. If Canadian Natural is so required to withhold or deduct
any amount for or on account of Canadian Taxes from any payment made under or
with respect to the debt securities, Canadian Natural will pay to each Holder as
additional interest such additional amounts ("Additional Amounts") as may be
necessary so that the net amount received by each Holder after such withholding
or deduction (and after deducting any Canadian Taxes on such Additional Amounts)
will not be less than the amount the Holder would have received if such Canadian
Taxes had not been withheld or deducted. However, no Additional Amounts will be
payable with respect to a payment made to a Holder (such Holder, an "Excluded
Holder") in respect of the beneficial owner thereof:
(a) with which Canadian Natural does not deal at arm's length (within the
meaning of the INCOME TAX ACT (Canada)) at the time of making such
payment;
(b) which is subject to such Canadian Taxes by reason of the Holder being a
resident, domicile or national of, or engaged in business or
maintaining a permanent establishment or other physical presence in or
otherwise having some connection with Canada or any province or
territory thereof otherwise than by the mere holding of debt securities
or the receipt of payments thereunder; or
(c) which is subject to such Canadian Taxes by reason of the Holder's
failure to comply with any certification, identification, information,
documentation or other reporting requirements if compliance is required
by law, regulation, administrative practice or an applicable treaty as
a precondition to exemption from, or a reduction in the rate of
deduction or withholding of, such Canadian Taxes.
Canadian Natural will also:
(a) make such withholding or deduction; and
(b) remit the full amount deducted or withheld to the relevant authority in
accordance with applicable law.
Canadian Natural will furnish to the Holders of the debt securities, within
60 days after the date the payment of any Canadian Taxes is due pursuant to
applicable law, certified copies of tax receipts or other documents evidencing
such payment by Canadian Natural.
Canadian Natural will indemnify and hold harmless each Holder (other than
an Excluded Holder) and upon written request reimburse each such Holder for the
amount of:
(a) any Canadian Taxes so levied or imposed and paid by such Holder as a
result of payments made under or with respect to the debt securities;
(b) any liability (including penalties, interest and expenses) arising
therefrom or with respect thereto; and
(c) any Canadian Taxes imposed with respect to any reimbursement under
clause (i) or (ii) above, but excluding any such Canadian Taxes on such
Holder's net income.
Wherever in the Indenture there is mentioned, in any context, the payment
of principal (and premium, if any), interest or any other amount payable under
or with respect to a Security, such mention shall be deemed to include mention
of the payment of Additional Amounts to the extent that, in such context,
Additional Amounts are, were or would be payable in respect thereof.
17
TAX REDEMPTION
The debt securities will be subject to redemption in whole, but not in
part, at the option of Canadian Natural, at any time, on not less than 30 nor
more than 60 days prior written notice, at 100 percent of the principal amount,
together with accrued interest thereon to the redemption date, in the event that
we have become or would become obligated to pay, on the next date on which any
amount would be payable with respect to the debt securities, any Additional
Amounts as a result of an amendment to or change in the laws (including any
regulations promulgated thereunder) of Canada (or any political subdivision or
taxing authority thereof or therein), or any amendment to or change in any
official position regarding the application or interpretation of such laws or
regulations, which change is announced or becomes effective on or after the date
of this prospectus.
MODIFICATION AND WAIVER
The Indenture permits Canadian Natural and the Trustee to enter into
supplemental indentures without the consent of the Holders of the debt
securities to, among other things: (a) secure the debt securities of one or more
series, (b) evidence the assumption by the Successor Corporation of Canadian
Natural's covenants and obligations under the Indenture and the debt securities
then Outstanding, (c) add covenants or Events of Default for the benefit of the
Holders of one or more series of the debt securities, (d) cure any ambiguity or
correct or supplement any defective provision in the Indenture which correction
will not be prejudicial to the interests of the Holders of the debt securities,
(e) establish the form and terms of the debt securities of any series, (f)
evidence the acceptance of appointment by a successor Trustee, (g) to comply
with any requirements of the SEC in order to effect and maintain the
qualification of the Indenture under the Trust Indenture Act of 1939, as
amended, (h) to supplement any of the provisions of the Indenture to the extent
necessary to permit or facilitate defeasance and discharge of any series of debt
securities, provided, however, such action shall not adversely affect the
interests of the Holders of any debt securities in any material respect, and (i)
make any other modifications which will not be prejudicial to the interests of
the Holders of the debt securities.
The Indenture also permits Canadian Natural and the Trustee, with the
consent of the Holders of a majority in aggregate principal amount of the debt
securities of each series then Outstanding and affected (voting as one class),
to add any provisions to, or change in any manner or eliminate any of the
provisions of, the Indenture or modify in any manner the rights of the Holders
of the debt securities of each such affected series; provided, however, that
Canadian Natural and the Trustee may not, among other things, without the
consent of the Holder of each Security then Outstanding and affected thereby:
(a) change the Stated Maturity of the principal amount of, or any installment of
the principal of or the interest on, that Security, (b) reduce the principal
amount of or the rate of interest on or any premium payable upon the redemption
of that Security, (c) reduce the amount of principal of an Original Issue
Discount Security payable upon acceleration of the Maturity thereof, (d) change
the place or currency of payment of the principal of or any premium or interest
on that Security, (e) impair the right to institute suit for the enforcement of
payment of this kind with respect to that Security on or after the Stated
Maturity thereof, (f) reduce the percentage in principal amount of the
Outstanding Securities of the affected series, the consent of whose Holders is
required for modification or amendment of the Indenture, or for any waiver with
respect to defaults, breaches, Events of Default or declarations of
acceleration, (g) change the time at which any Security may or shall be
redeemable or repayable, (h) change any obligation of Canadian Natural to pay
additional amounts provided for pursuant to the Indenture, with certain
exceptions, or (i) modify any provisions of the Indenture relating to modifying
or amending the Indenture or the waiving of past defaults or covenants except as
otherwise specified in the Indenture.
Prior to the acceleration of the Maturity of any debt securities, the
Holders of a majority in aggregate principal amount of the debt securities of
all series at the time Outstanding with respect to which a default or breach or
an Event of Default shall have occurred and be continuing (voting as one class)
may on behalf of the Holders of all such affected debt securities waive any past
default or breach or Event of Default and its consequences, except a default in
the payment of the principal of or premium or interest on any Security of any
series or an Event of Default in respect of a covenant or provision of the
Indenture or of any Security which cannot be modified or amended without the
consent of the Holder of each Security affected.
DEFEASANCE AND COVENANT DEFEASANCE
Unless otherwise specified in the applicable prospectus supplement, the
Indenture provides that, at the option of Canadian Natural, Canadian Natural
will be discharged from any and all obligations with respect to the debt
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securities of any series (except for certain obligations to register the
transfer or exchange of the debt securities of that series, to replace
mutilated, destroyed, lost or stolen debt securities of that series, to maintain
paying agencies, to compensate and indemnify the Trustee and to maintain the
trust and payments under the trust described below and the defeasance provisions
of the Indenture) (hereinafter called a "defeasance") upon the irrevocable
deposit with the Trustee, in trust, of money, and/or Government Obligations
which, through the payment of the principal thereof and the interest thereon in
accordance with their terms, will provide money, in an amount sufficient, in the
opinion of a nationally recognized firm of independent chartered accountants, to
pay all the principal of and any premium and interest on the debt securities of
that series on the Stated Maturity of those payments in accordance with the
terms of the debt securities of that series. Such a defeasance may be effected
only if, among other things, (i) Canadian Natural has delivered to the Trustee
an Opinion of Counsel in the United States (who may be counsel for Canadian
Natural) stating that Canadian Natural has received from, or there has been
published by, the Internal Revenue Service a ruling, since the date of the
Indenture, or there has been a change in the applicable laws or regulations, in
either case to the effect that the Holders of the debt securities of that series
will not recognize income, gain or loss for United States federal income tax
purposes as a result of that defeasance and will be subject to United States
federal income tax on the same amounts, in the same manner and at the same times
as would have been the case if that defeasance had not occurred, and (ii)
Canadian Natural has delivered to the Trustee an Opinion of Counsel in Canada
(who may be counsel for Canadian Natural) or a ruling from the Canada Customs
and Revenue Agency to the effect that the Holders of the debt securities of that
series will not recognize income, gain or loss for Canadian federal or
provincial income or other Canadian tax purposes as a result of that defeasance
and will be subject to Canadian federal or provincial income and other Canadian
tax (including withholding tax) on the same amounts, in the same manner and at
the same times as would have been the case if that defeasance had not occurred
(and for the purposes of such opinion, such Canadian counsel shall assume that
Holders of the debt securities include holders who are not resident in Canada).
In addition, Canadian Natural may also obtain a discharge of the Indenture with
respect to the debt securities of all series issued under the Indenture by
depositing with the Trustee, in trust, an amount of money and government
securities as shall be sufficient to pay, at Stated Maturity or upon redemption,
all of those debt securities, provided that those debt securities are by their
terms to become due and payable within one year or are to be called for
redemption within one year.
The Indenture also provides that Canadian Natural may omit to comply with
the restrictive covenants described under the caption "Negative Pledge" and
certain other covenants and no Event of Default shall arise with respect to the
debt securities of that series by reason of this failure to comply (hereinafter
called a "covenant defeasance"), upon the irrevocable deposit with the Trustee,
in trust, of money and/or Government Obligations which, through the payment of
the principal thereof and the interest thereon in accordance with their terms,
will provide money, in an amount sufficient, in the opinion of a nationally
recognized firm of independent chartered accountants, to pay all the principal
of and any premium and interest on the debt securities of that series on the
Stated Maturity of those payments in accordance with the terms of the debt
securities of that series. Canadian Natural's other obligations with respect to
the debt securities of that series would remain in full force and effect. A
covenant defeasance may be effected only if, among other things, (i) Canadian
Natural has delivered to the Trustee an Opinion of Counsel in the United States
(who may be counsel for Canadian Natural) to the effect that the Holders of debt
securities of that series will not recognize income, gain or loss for United
States federal income tax purposes as a result of the covenant defeasance and
will be subject to United States federal income tax on the same amounts, in the
same manner and at the same times as would have been the case if that covenant
defeasance had not occurred, and (ii) Canadian Natural has delivered to the
Trustee an Opinion of Counsel in Canada (who may be counsel for Canadian
Natural) or a ruling from the Canada Customs and Revenue Agency to the effect
that the Holders of the debt securities of that series will not recognize
income, gain or loss for Canadian federal or provincial income or other Canadian
tax purposes as a result of that covenant defeasance and will be subject to
Canadian federal or provincial income and other Canadian tax (including
withholding tax) on the same amounts, in the same manner and at the same times
as would have been the case if that covenant defeasance had not occurred (and
for the purposes of such opinion, such Canadian counsel shall assume that
Holders of the debt securities include holders who are not resident in Canada).
In the event that Canadian Natural exercises its option to effect a
covenant defeasance with respect to the debt securities of any series and the
debt securities of that series are thereafter declared due and payable because
of the occurrence of another Event of Default, the amount of money and
securities on deposit with the Trustee would be sufficient, in the opinion of a
nationally recognized firm of independent chartered accountants, to pay the
amounts due on the debt securities of that series at their respective Stated
Maturities, but may not be sufficient, in the opinion
19
of a nationally recognized firm of independent chartered accountants, to pay the
amounts due on the debt securities of that series at the time of the
acceleration resulting from that Event of Default. However, Canadian Natural
would remain liable for this deficiency.
PROVISION OF FINANCIAL INFORMATION
We will file with the Trustee, within 15 days after we file them with the
SEC, copies of our annual report and other information (or copies of such
portions of any of the foregoing as the SEC may by rules and regulations
prescribe) which we are required to file with the SEC pursuant to Section 13 or
15(d) of the Exchange Act. Notwithstanding that we may not be required to remain
subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act
or otherwise report on an annual and quarterly basis on forms provided for such
annual and quarterly reporting pursuant to rules and regulations promulgated by
the SEC, we will continue to provide the Trustee (i) within 140 days after the
end of each fiscal year, the information required to be contained in annual
reports on Form 20-F or Form 40-F as applicable (or any successor form) and (ii)
within 60 days after the end of each of the first three fiscal quarters of each
fiscal year, the information required to be contained in reports on Form 6-K (or
any successor form), which, regardless of applicable requirements shall, at a
minimum, consist of such information required to be provided in quarterly and
annual reports under the laws of Canada or any province thereof to security
holders of a corporation with securities listed on the TSX Inc., whether nor not
we have any or our securities listed on such exchange. Such information will be
prepared in accordance with Canadian disclosure requirements and Canadian GAAP.
RESIGNATION OF TRUSTEE
The Trustee may resign or be removed with respect to one or more series of
debt securities and a successor Trustee may be appointed to act with respect to
such series. In the event that two or more persons are acting as Trustee with
respect to different series of debt securities, each such Trustee shall be a
Trustee of a trust under the Indenture separate and apart from the trust
administered by any other such Trustee, and any action described herein to be
taken by the "Trustee" may then be taken by each such Trustee with respect to,
and only with respect to, the one or more series of debt securities for which it
is Trustee.
PAYMENT AND PAYING AGENTS
Unless otherwise provided in the applicable prospectus supplement,
principal, premium, if any, and interest, if any, on debt securities will be
payable at an office or agency of the Trustee in New York, New York, except that
at our option interest, if any, may be paid (i) by check mailed to the address
of the Person entitled thereto as such address shall appear in the Security
Register or (ii) by wire transfer to an account located in the United States
maintained by the Person entitled thereto as specified in the Security Register.
Unless otherwise provided in the applicable prospectus supplement, payment of
any instalment of interest on debt securities will be made to the Person in
whose name such debt security is registered at the close of business on the
Regular Record Date for such interest.
Any Paying Agents outside the United States and any other Paying Agents in
the United States initially designated by us for the debt securities will be
named in the applicable prospectus supplement. We may at any time designate
additional Paying Agents or rescind the designation of any Paying Agent or
approve a change in the office through which any Paying Agent acts, except that
we will be required to maintain a Paying Agent in each Place of Payment for such
series.
CONSENT TO SERVICE AND JURISDICTION
We have designated CT Corporation System, 111-8th Avenue, 13th Floor, New
York, New York 10011 as our authorized agent for service of process in the
United States in any action, suit or proceeding arising out of or relating to
the Indenture or the debt securities. Any such action may be brought in any
Federal court (or, if such court refuses to take jurisdiction, in any New York
state court) located in the Borough of Manhattan in The City of New York, or
brought under United States federal or state securities laws or brought by the
Trustee, and that Canadian Natural has irrevocably submitted to the jurisdiction
of such courts.
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GOVERNING LAW
The Indenture and the debt securities will be governed by and construed in
accordance with the laws of the State of New York.
ENFORCEABILITY OF JUDGMENTS
Since a significant portion of all of our assets, as well as the assets of
a number of our directors and officers, are outside the United States, any
judgment obtained in the United States against us or certain of our directors or
officers, including judgments with respect to the payment of principal on any
debt securities, may not be collectible within the United States.
We have been informed by Parlee McLaws LLP that the laws of the Province of
Alberta and the federal laws of Canada applicable therein permit an action to be
brought in a court of competent jurisdiction in the Province of Alberta on any
final and conclusive judgment in PERSONAM of any federal or state court located
in the State of New York (a "New York Court") against us, which judgment is
subsisting and unsatisfied for a sum certain with respect to enforceability of
the Indenture and the debt securities that is not impeachable as void or
voidable under the internal laws of the State of New York if (i) the New York
Court rendering such judgment had jurisdiction over the judgment debtor, as
recognized by the courts of the Province of Alberta (and submission by us in the
Indenture to the jurisdiction of the New York Court will be sufficient for that
purpose with respect to the debt securities), (ii) the judgment debtor was
properly served in connection with any action leading to such judgment, (iii)
such judgment was not obtained by fraud or in a manner contrary to natural
justice and the enforcement thereof would not be inconsistent with public
policy, as such terms are understood under the laws of the Province of Alberta
and enforcement thereof will not be contrary to any order made by the Attorney
General of Canada under the FOREIGN EXTRATERRITORIAL MEASURES ACT (Canada) or by
the Competition Tribunal under the COMPETITION ACT (Canada), (iv) the
enforcement of such judgment would not be contrary to the laws of general
application limiting the enforcement of creditors' rights including any other
rule of law, whether equitable, legal or statutory, bankruptcy, reorganization,
winding up, moratorium and similar laws and does not constitute, directly or
indirectly, the enforcement of foreign revenue, expropriatory or penal laws in
the Province of Alberta, (v) no new admissible evidence relevant to the action
is discovered prior to the rendering of judgment by the court in the Province of
Alberta, (vi) interest payable on the debt securities is not characterized by a
court in the Province of Alberta as interest payable at a criminal rate within
the meaning of section 347 of the CRIMINAL CODE (Canada) and (vii) the action to
enforce such judgment is commenced within the appropriate limitation periods,
except that any court in the Province of Alberta may only give judgment in
Canadian dollars. We have been advised by such counsel that there is doubt as to
the enforceability in Canada in original actions, or in motions to enforce
judgments of United States courts, of civil liabilities predicated solely upon
United States federal securities laws.
CERTAIN INCOME TAX CONSIDERATIONS
The applicable prospectus supplement will describe the material Canadian
federal income tax consequences to an investor who is a citizen or resident of
the United States purchasing the debt securities, including whether payments of
principal, premium, if any, and interest will be subject to Canadian
non-resident withholding tax.
The applicable prospectus supplement will also describe certain United
States federal income tax consequences of the purchase, ownership and
disposition of the debt securities by an investor who is a United States person
(as defined in the applicable prospectus supplement), including, to the extent
applicable, certain relevant United States federal income tax rules pertaining
to capital gains and ordinary income treatment, original issue discount, backup
withholding and the foreign tax credit, and any consequences relating to debt
securities payable in a currency other than U.S. dollars, issued at an original
discount for United States federal income tax purposes or containing early
redemption provisions or other special terms.
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RISK FACTORS
PROSPECTIVE PURCHASERS OF THE DEBT SECURITIES SHOULD CONSIDER CAREFULLY THE
RISK FACTORS SET FORTH BELOW AS WELL AS THE OTHER INFORMATION CONTAINED IN AND
INCORPORATED BY REFERENCE IN THIS PROSPECTUS AND IN THE PROSPECTUS SUPPLEMENT
BEFORE PURCHASING THE DEBT SECURITIES IN THIS OFFERING.
A SUBSTANTIAL OR EXTENDED DECLINE IN OIL AND GAS PRICES COULD HAVE A MATERIAL
ADVERSE EFFECT ON US.
Our financial condition will be substantially dependent on, and highly
sensitive to, the prevailing prices of crude oil and natural gas. Fluctuations
in crude oil or natural gas prices could have a material adverse effect on our
operations and financial condition and the value and amount of our reserves.
Prices for crude oil and natural gas fluctuate in response to changes in the
supply of and demand for, crude oil and natural gas, market uncertainty and a
variety of additional factors beyond our control. Oil prices are determined by
international supply and demand. Factors which affect crude oil prices include
the actions of the Organization of Petroleum Exporting Countries, the condition
of the Canadian, United States and Asian economies, government regulation,
political stability in the Middle East and elsewhere, the foreign supply of oil,
the price of foreign imports, the availability of alternate fuel sources and
weather conditions. Natural gas prices realized by us will be affected primarily
in North America by supply and demand, weather conditions and prices of
alternate sources of energy. Any substantial or extended decline in the prices
of crude oil or natural gas could result in a delay or cancellation of existing
or future drilling, development or construction programs or curtailment in
production at some properties or resulting unutilized long-term transportation
commitments, all of which could have a material adverse effect on our revenues,
profitability and cash flows.
We conduct an annual assessment of the carrying value of our assets in
accordance with Canadian generally accepted accounting principles. If oil and
natural gas prices decline, the carrying value of our assets could be subject to
downward revisions, and our earnings could be adversely affected.
Approximately 27 percent of our 2004 production on a Boe basis was heavy
oil. The market prices for heavy oil differ from the established market indices
for light and medium grades of oil, due principally to the higher transportation
and refining costs associated with heavy oil. As a result, the price received
for heavy oil is generally lower than the price for medium and light oil, and
the production costs associated with heavy oil are relatively higher than for
lighter grades. Future differentials are uncertain and any increase in the heavy
oil differentials could have a material adverse effect on our business.
OUR BUSINESS IS SUBJECT TO ENVIRONMENTAL LEGISLATION IN ALL JURISDICTIONS IN
WHICH WE OPERATE AND ANY CHANGES IN SUCH LEGISLATION COULD NEGATIVELY AFFECT OUR
RESULTS OF OPERATIONS.
All phases of the oil and natural gas business are subject to environmental
regulation pursuant to a variety of Canadian, United States, United Kingdom,
European Union and other federal, provincial, state and municipal laws and
regulations, as well as international conventions (collectively, "environmental
legislation").
Environmental legislation imposes, among other things, restrictions,
liabilities and obligations in connection with the generation, handling,
storage, transportation, treatment and disposal of hazardous substances and
waste and in connection with spills, releases and emissions of various
substances to the environment. Environmental legislation also requires that
wells, facility sites and other properties associated with our operations be
operated, maintained, abandoned and reclaimed to the satisfaction of applicable
regulatory authorities. In addition, certain types of operations, including
exploration and development projects and significant changes to certain existing
projects, may require the submission and approval of environmental impact
assessments or permit applications. Compliance with environmental legislation
can require significant expenditures and failure to comply with environmental
legislation may result in the imposition of fines and penalties. The costs of
complying with environmental legislation in the future may have a material
adverse effect on our financial condition or results of operations.
We anticipate that changes in environmental legislation may require, among
other things, reductions in emissions to the air from our operations which may
result in increased capital expenditures. Future changes in environmental
legislation could occur and result in stricter standards and enforcement, larger
fines and liability, and
22
increased capital expenditures and operating costs, which could have a material
adverse effect on our financial condition or results of operations.
IF WE FAIL TO ACQUIRE OR FIND ADDITIONAL RESERVES, OUR RESERVES AND PRODUCTION
WILL DECLINE MATERIALLY FROM CURRENT LEVELS.
Our future oil and natural gas reserves and production, and therefore our
cash flows and results of operations, are highly dependent upon our success in
exploiting our current reserve base and acquiring or discovering additional
reserves. Without additions to our reserves through exploration, acquisition or
development activities, our reserves and production will decline over time as
reserves are depleted. The business of exploring for, developing or acquiring
reserves is capital intensive. To the extent our cash flows from operations are
insufficient to fund our capital expenditures and external sources of capital
become limited or unavailable, our ability to make the necessary capital
investments to maintain and expand our oil and natural gas reserves will be
impaired. In addition, we may be unable to find and develop or acquire
additional reserves to replace our oil and natural gas production at acceptable
costs.
WE OPERATE IN A HIGHLY COMPETITIVE INDUSTRY.
The energy industry is highly competitive in all aspects, including the
exploration for, and the development of, new sources of supply, the construction
and operation of crude oil and natural gas pipelines and facilities, the
acquisition of oil and natural gas interests and the transportation and
marketing of crude oil, natural gas, natural gas liquids and electricity. We
will compete not only among participants in the energy industry, but also
between petroleum products and other energy sources. Our competitors will
include integrated oil and natural gas companies and numerous other senior oil
and natural gas companies, some of which may have greater financial and other
resources than us.
WE ARE SUBJECT TO A NUMBER OF BUSINESS RISKS THAT COULD AFFECT OUR RESULTS OF
OPERATIONS.
Other business risks include operational risks, the cost of capital
available to fund exploration and development programs, regulatory issues and
taxation and the requirements of new environmental laws and regulations.
Exploring for, producing and transporting petroleum substances involves many
risks, which even a combination of experience, knowledge and careful evaluation
may not be able to overcome. These activities are subject to a number of hazards
which may result in fires, explosions, spills, blow-outs or other unexpected or
dangerous conditions causing personal injury, property damage, environmental
damage and interruption of operations. Our liability, property and business
interruption insurance may not provide adequate coverage in certain unforeseen
circumstances.
OUR OWNERSHIP INTERESTS IN FOREIGN OIL AND NATURAL GAS PROPERTIES INVOLVE A
NUMBER OF RISKS AND COULD ADVERSELY AFFECT OUR RESULTS OF OPERATIONS.
Our foreign investments involve risks typically associated with investments
in developing countries such as uncertain political, economic, legal and tax
environments. These risks may include, among other things, currency restrictions
and exchange rate fluctuations, loss of revenue, property and equipment as a
result of hazards such as expropriation, nationalization, war, insurrection and
other political risks, risks of increases in taxes and governmental royalties,
renegotiation of contracts with governmental entities and quasi-governmental
agencies, changes in laws and policies governing operations of foreign-based
companies and other uncertainties arising out of foreign government sovereignty
over our international operations. In addition, if a dispute arises in our
foreign operations, we may be subject to the exclusive jurisdiction of foreign
courts or may not be successful in subjecting foreign persons to the
jurisdiction of a court in the United States or Canada.
Our private ownership of oil and natural gas properties in Canada differs
distinctly from our ownership interests in foreign oil and natural gas
properties. In some foreign countries in which we do and may do business in the
future, the state generally retains ownership of the minerals and consequently
retains control of, and in many cases participates in, the exploration and
production of reserves. Accordingly, operations outside of Canada may be
materially affected by host governments through royalty payments, export taxes
and regulations, surcharges, value added taxes, production bonuses and other
charges. In addition, changes in prices and costs of operations, timing of
production and other factors may affect estimates of oil and natural gas reserve
quantities and future net cash flows
23
attributable to foreign properties in a manner materially different than such
changes would affect estimates for Canadian properties. Agreements covering
foreign oil and natural gas operations also frequently contain provisions
obligating us to spend specified amounts on exploration and development or to
perform certain operations, or forfeit all or a portion of the acreage subject
to the contract.
OUR OIL AND NATURAL GAS RESERVE DATA AND FUTURE NET REVENUE ESTIMATES ARE
UNCERTAIN.
There are numerous uncertainties inherent in estimating quantities of
reserves, including many factors beyond our control. The reserve information set
forth and incorporated by reference in this prospectus is our estimate. In
general, estimates of economically recoverable oil and natural gas reserves and
the future net cash flow therefrom are based upon a number of factors and
assumptions made as of the date on which the reserve estimates were determined,
such as geological and engineering estimates which have inherent uncertainties,
the assumed effects of regulation by governmental agencies and estimates of
future commodity prices and operating costs, all of which may vary considerably
from actual results. All such estimates are, to some degree, uncertain and
classifications of reserves are only attempts to define the degree of
uncertainty involved. For these reasons, estimates of the economically
recoverable oil and natural gas reserves attributable to any particular group of
properties, the classification of such reserves based on risk of recovery and
estimates of future net revenues expected therefrom, prepared by different
engineers or by the same engineers at different times, may vary substantially.
Our actual production, revenues, taxes and development, abandonment and
operating expenditures with respect to its reserves will likely vary from such
estimates, and such variances could be material.
Estimates with respect to reserves that may be developed and produced in
the future are often based upon volumetric calculations and upon analogy to
similar types of reserves, rather than upon actual production history. Estimates
based on these methods generally are less reliable than those based on actual
production history. Subsequent evaluation of the same reserves based upon
production history will result in variations, which may be material, in the
estimated reserves.
THE DEBT SECURITIES WILL BE STRUCTURALLY SUBORDINATED TO ANY INDEBTEDNESS OF OUR
SUBSIDIARIES.
We carry on our business through corporate and partnership subsidiaries.
The majority of our assets are held in one or more corporate or partnership
subsidiaries. Our results of operations and ability to service indebtedness,
including the debt securities, are dependent upon the results of operations of
these subsidiaries and the payment of funds by these subsidiaries to us in the
form of loans, dividends or otherwise. In the event of the liquidation of any
corporate or partnership subsidiary, the assets of the subsidiary would be used
first to repay the indebtedness of the subsidiary, including trade payables or
obligations under any guarantees, prior to being used by us to pay our
indebtedness, including any debt securities. Such indebtedness and any other
future indebtedness of our subsidiaries would be structurally senior to the debt
securities. The Indenture pursuant to which the debt securities will be issued
does not limit our ability or the ability of our subsidiaries to incur
additional unsecured indebtedness. See "Description of Debt Securities--Ranking
and Other Indebtedness".
PLAN OF DISTRIBUTION
We may sell the debt securities to or through underwriters or dealers or to
one or more other purchasers directly or through agents.
The applicable prospectus supplement will describe the terms of the
offering, including the name or names of any underwriters or agents, the
purchase price or prices of the debt securities to be offered, the proceeds to
us from the sale of the debt securities to be offered, any initial public
offering price, any underwriting discount or commission and any discounts,
concessions or commissions allowed or reallowed or paid by any underwriter to
other dealers. Any initial public offering price and any discounts, concessions
or commissions allowed or reallowed or paid to dealers may be changed from time
to time.
The debt securities may be sold from time to time in one or more
transactions at a fixed price or fixed prices, which may be changed, or at
market prices prevailing at the time of sale, at prices related to these
prevailing market prices or at negotiated prices.
24
If indicated in the applicable prospectus supplement, we may authorize
dealers or other persons acting as our agents to solicit offers by certain
institutions to purchase the debt securities directly from us pursuant to
contracts providing for payment and delivery on a future date. These contracts
will be subject only to the conditions described in the applicable prospectus
supplement or supplements, which will also describe the commission payable for
solicitation of these contracts.
We may enter into agreements to indemnify underwriters, dealers and agents
who participate in the distribution of the debt securities against certain
liabilities, including liabilities under the U.S. Securities Act of 1933, as
amended, or to contribution with respect to payments which the underwriters,
dealers or agents may be required to make in respect of these liabilities. The
underwriters, dealers and agents with whom we enter into agreements may be
customers of, engage in transactions with or perform services for us in the
ordinary course of business.
The debt securities will not be qualified for sale under the securities
laws of any province or territory of Canada and may not be offered, sold or
delivered, directly or indirectly, in Canada or to any resident of Canada in
contravention of the securities laws of any province or territory of Canada.
Each underwriter and each dealer participating in the distribution of debt
securities will agree that it will not, directly or indirectly, offer, sell or
deliver any such debt securities purchased by it in connection with that
distribution in Canada or to any resident of Canada in contravention of the
securities laws of any province or territory of Canada.
Each series of the debt securities will be a new issue of securities with
no established trading market. Unless otherwise specified in an applicable
prospectus supplement relating to a series of debt securities, the debt
securities will not be listed on any securities exchange or on any automated
dealer quotation system. Some broker-dealers may make a market in the debt
securities, but they will not be obligated to do so and may discontinue any
market-making activities at any time without notice. We cannot assure you that
there will be liquidity in the trading market for the debt securities of any
series or that an active public market for the debt securities of any series
will develop. If an active public trading market for the debt securities of any
series does not develop, the market price and liquidity of the series of debt
securities may be adversely affected.
LEGAL MATTERS
Unless otherwise specified in the applicable prospectus supplement relating
to a series of debt securities, the validity of the debt securities will be
passed upon for us by Parlee McLaws LLP, Calgary, Alberta, and by Paul, Weiss,
Rifkind, Wharton & Garrison LLP, New York, New York. As to all matters of
Canadian federal and Alberta law, Paul, Weiss, Rifkind, Wharton & Garrison LLP
may rely upon the opinion of Parlee McLaws LLP. As to all matters of U.S.
federal and New York law, Parlee McLaws LLP may rely upon the opinion of Paul,
Weiss, Rifkind, Wharton & Garrison LLP.
We are advised that, as of the date hereof, the partners and associates of
Parlee McLaws LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP as a group
beneficially own, directly or indirectly, less than one percent of our
outstanding securities.
EXPERTS
Our consolidated balance sheets as at December 31, 2004 and 2003 and the
consolidated statements of earnings, retained earnings and cash flows for each
of the years in the three year period ended December 31, 2004 have been audited
by PricewaterhouseCoopers LLP, Chartered Accountants, Calgary, Alberta as stated
in their report incorporated by reference in this prospectus.
The information relating to our proved and probable reserves as at December
31, 2004 incorporated by reference in this prospectus has been compiled by us
based on reports prepared by independent petroleum engineering consultants
retained by us as to 100 percent of our reserves. Reports estimating our proved
and probable reserves were obtained from Sproule Associates Limited and Ryder
Scott Company. The reports are prepared February 18, 2005 and are effective
December 31, 2004.
25
Gilbert Laustsen Jung Associates Ltd., an independent reserves evaluator,
prepared a report dated February 9, 2005 effective February 9, 2005 with respect
to the Horizon oil sands mining reserves, details of which have been
incorporated by reference in this prospectus.
We are advised that, as of the date hereof, the directors and officers of
Sproule Associates Limited, Ryder Scott Company and Gilbert Laustsen Jung
Associates Ltd. as a group beneficially own, directly or indirectly, less than
one percent of our outstanding securities.
DOCUMENTS FILED AS PART OF THE REGISTRATION STATEMENT
The following documents have been filed with the SEC as part of the
registration statement of which this prospectus is a part insofar as required by
the SEC's Form F-9:
o the documents listed in the second paragraph under "Where You Can Find
More Information" in this prospectus to the extent not previously filed
with the SEC;
o the consents of our accountants PricewaterhouseCoopers LLP;
o the consent of our counsel Parlee McLaws LLP;
o the consent of our independent petroleum consultants Sproule Associates
Limited;
o the consent of our independent petroleum consultants Ryder Scott
Company;
o the consent of our independent petroleum consultants Gilbert Laustsen
Jung Associates Ltd.;
o powers of attorney from directors and officers of Canadian Natural;
o the indenture relating to the debt securities;
o statement of eligibility of the Trustee on Form T-1; and
o certificate respecting interest coverage ratios.
26
CONSENT OF PRICEWATERHOUSECOOPERS LLP
We have read the base shelf prospectus of Canadian Natural Resources
Limited (the "Company") dated June 3, 2005 relating to the issue and sale of up
to US$2,000,000,000 of Debt Securities of the Company. We have complied with
Canadian generally accepted standards for an auditor's involvement with offering
documents.
We consent to the incorporation by reference in the above-mentioned
prospectus of our report to the shareholders of Canadian Natural Resources
Limited on the consolidated balance sheets of Canadian Natural Resources Limited
as at December 31, 2004 and 2003 and the consolidated statements of earnings,
retained earnings and cash flows for each of the years in the three-year period
ended December 31, 2004. Our report is dated February 18, 2005.
(signed) "PricewaterhouseCoopers LLP" Chartered Accountants
June 3, 2005
27
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[LOGO - CANADIAN NATURAL]
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PART II
INFORMATION NOT REQUIRED TO BE DELIVERED
TO OFFEREES OR PURCHASERS
INDEMNIFICATION
Under the BUSINESS CORPORATIONS ACT (ALBERTA) (the "ABCA"), the
Registrant may indemnify a present or former director or officer or a person who
acts or acted at the Registrant's request as a director or officer of a body
corporate of which the Registrant is or was a shareholder or creditor, and his
heirs and legal representatives, against all costs, charges and expenses,
including an amount paid to settle an action or satisfy a judgment, reasonably
incurred by him in respect of any civil, criminal or administrative action or
proceeding to which he is made a party by reason of being or having been a
director or officer of the Registrant or that body corporate, if the director or
officer acted honestly and in good faith with a view to the best interests of
the Registrant, and, in the case of a criminal or administrative action or
proceeding that is enforced by a monetary penalty, had reasonable grounds for
believing that his conduct was lawful. Such indemnification may be in connection
with a derivative action only with court approval. A director or officer is
entitled to indemnification from the Registrant as a matter of right if he or
she was substantially successful on the merits, fulfilled the conditions set
forth above, and is fairly and reasonably entitled to indemnity.
The by-laws of the Registrant provide that, subject to the limitations
contained in the ABCA, the Registrant shall indemnify a director or officer, a
former director or officer, or a person who acts or acted at the Registrant's
request as a director or officer of a body corporate of which the Registrant is
or was a shareholder or creditor, and his heirs, executors, administrators and
other legal representatives, to the fullest extent which may from time to time
be permitted by the ABCA, from and against, (a) all costs, charges and expenses
that he incurs in respect of any civil, criminal or administrative action or
proceeding that is proposed or commenced against him by reason of being or
having been a director or officer of the Registrant, and (b) all other costs,
charges and expenses that he sustains or incurs in respect of the affairs of the
Registrant, except in respect of an action by or on behalf of the Registrant, or
such body corporate, to procure a judgment in its favor.
The by-laws of the Registrant provide that the Registrant may, subject
to the limitations contained in the ABCA, purchase and maintain insurance for
the benefit of any director or officer as such against any liability incurred by
him in his capacity as a director or officer of the Registrant or as a director
or officer of any body corporate where he acts or acted in that capacity at the
Registrant's request. The Registrant has not purchased any director and officer
liability insurance from a third party but rather self-insures against any such
liabilities.
Insofar as indemnification for liabilities arising under the Securities
Act of 1933 may be permitted to directors, officers or persons controlling the
Registrant pursuant to the foregoing provisions, the Registrant has been
informed that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Securities Act of
1933 and is therefore unenforceable.
II-1
EXHIBITS
EXHIBIT
NUMBER DESCRIPTION
------- -----------
4.1* The Annual Information Form of the Registrant, dated March 30,
2005, for the fiscal year ended December 31, 2004 (incorporated
by reference to the Registrant's Annual Report on Form 40-F for
the fiscal year ended December 31, 2004, as filed with the
Securities and Exchange Commission on April 1, 2005).
4.2* The Information Circular of the Registrant, dated March 17,
2005 issued in connection with the Annual Meeting of
Shareholders of the Registrant held on May 5, 2005 excluding
those portions which appear under the headings "Performance
Graph," "Report on Executive Compensation by the Compensation
Committee" and "Statement of Corporate Governance Practices"
(which portions shall be deemed not to be incorporated by
reference in this Registration Statement on Form F-9)
(incorporated by reference to the Registrant's Report on Form
6-K, as filed with the Securities and Exchange Commission on
May 12, 2005).
4.3* "Management's Discussion and Analysis" of the Registrant for
the fiscal year ended December 31, 2004 (incorporated by
reference to the Registrant's Annual Report on Form 40-F for
the fiscal year ended December 31, 2004, as filed with the
Securities and Exchange Commission on April 1, 2005).
4.4* The annual audited comparative consolidated financial
statements of the Registrant, together with the notes thereto
and Auditors' Report thereon, as at and for the fiscal year
ended December 31, 2004 (incorporated by reference to the
Registrant's Annual Report on Form 40-F for the fiscal year
ended December 31, 2004, as filed with the Securities and
Exchange Commission on April 1, 2005).
4.5* The unaudited interim comparative consolidated financial
statements of the Registrant, together with the notes thereto,
as at March 31, 2005 and for the three months ended March 31,
2005 and March 31, 2004 (incorporated by reference tthe
Registrant's Report on Form 6-K, filed with the Securities and
Exchange Commission on May 12, 2005).
4.6* "Management's Discussion and Analysis" of the Registrant as at
March 31, 2005 and for the three months ended March 31, 2005
and March 31, 2004 (incorporated by reference to the
Registrant's Report on Form 6-K, filed with the Securities and
Exchange Commission on May 12, 2005).
4.7* Material Change Report dated February 15, 2005 respecting the
Horizon Oil Sands Project.
5.1 Consent of PricewaterhouseCoopers LLP.
5.3 Consent of Parlee McLaws LLP.
5.4 Consent of Sproule Associates Limited.
5.5 Consent of Ryder Scott Company
II-2
5.6 Consent of Gilbert Laustsen Jung Associates Ltd.
6.1* Powers of Attorney.
7.1* Indenture dated as of July 24, 2001, between the Registrant and
The Bank of Nova Scotia Trust Company New York, as Trustee
(incorporated by reference to the Registrant's Registration
Statement on Form F-9, as filed with the Securities and
Exchange Commission on August 12, 2002).
7.2* Statement of Eligibility of the Trustee of Form T-1
(incorporated by reference to the Registrant's Registration
Statement on Form F-9, as filed with the Securities and
Exchange Commission on August 12, 2002).
9.1* Interest Coverage calculations as at December 31, 2004 and
March 31, 2005.
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* PREVIOUSLY FILED.
II-3
PART III
UNDERTAKING AND CONSENT TO SERVICE OF PROCESS
ITEM 1. UNDERTAKING
The Registrant undertakes to make available, in person or by telephone,
representatives to respond to inquiries made by the Commission staff, and to
furnish promptly, when requested to do so by the Commission staff, information
relating to the securities registered pursuant to Form F-9 or to transactions in
said securities.
ITEM 2. CONSENT TO SERVICE OF PROCESS
The Registrant has previously filed with the Commission a written
irrevocable consent and power of attorney on Form F-X.
Any change to the name or address of the agent for service of process
of the Registrant shall be communicated promptly to the Securities and Exchange
Commission by an amendment to the Form F-X referencing the file number of the
relevant registration statement.
III-1
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933,
the Registrant certifies that it has reasonable grounds to believe that it meets
all of the requirements for filing on Form F-9 and has duly caused this
Amendment to its Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Calgary, Province of
Alberta, Canada, on June 3, 2005.
CANADIAN NATURAL RESOURCES LIMITED
By: /s/ John G. Langille
---------------------------
Name: John G. Langille
Title: Vice Chairman
Pursuant to the requirements of the Securities Act of 1933,
this Amendment to the Registration Statement has been signed by the following
persons in the capacities and on the dates indicated.
SIGNATURE CAPACITY DATE
--------- -------- ----
* President and Chief Operating June 3, 2005
------------------------ Officer (Principal Executive Officer)
Steve W. Laut
* Senior Vice-President, Finance and June 3, 2005
------------------------ Chief Financial Officer (Principal
Douglas A. Proll Financial and Accounting Officer)
Chairman and Director
------------------------
Allan P. Markin
* Director June 3, 2005
------------------------
Catherine M. Best
* Vice-Chairman and Director June 3, 2005
------------------------
N. Murray Edwards
III-2
SIGNATURE CAPACITY DATE
--------- -------- ----
Director
------------------------
Gordon D. Giffin
* Vice-Chairman and Director June 3, 2005
------------------------
John G. Langille
* Director June 3, 2005
------------------------
Keith A. J. MacPhail
* Director June 3, 2005
------------------------
James S. Palmer
* Director June 3, 2005
------------------------
Eldon R. Smith, M.D.
* Director June 3, 2005
------------------------
David A. Tuer
AUTHORIZED REPRESENTATIVE
Pursuant to the requirements of Section 6(a) of the Securities
Act of 1933, the Authorized Representative has duly caused this Amendment to its
Registration Statement to be signed on its behalf by the undersigned, solely in
its capacity as the duly authorized representative of Canadian Natural Resources
Limited in the United States, on June 3, 2005.
CANNAT ENERGY INC.
By: /s/ John G. Langille
---------------------------
Name: John G. Langille
Title: President
*By: /s/ Douglas A. Proll
--------------------
Douglas A. Proll
Attorney-in-fact
III-3
EXHIBIT INDEX
EXHIBIT
NUMBER DESCRIPTION
------- -----------
4.1* The Annual Information Form of the Registrant, dated March 30,
2005, for the fiscal year ended December 31, 2004 (incorporated
by reference to the Registrant's Annual Report on Form 40-F for
the fiscal year ended December 31, 2004, as filed with the
Securities and Exchange Commission on April 1, 2005).
4.2* The Information Circular of the Registrant, dated March 17,
2005 issued in connection with the Annual Meeting of
Shareholders of the Registrant held on May 5, 2005 excluding
those portions which appear under the headings "Performance
Graph," "Report on Executive Compensation by the Compensation
Committee" and "Statement of Corporate Governance Practices"
(which portions shall be deemed not to be incorporated by
reference in this Registration Statement on Form F-9)
(incorporated by reference to the Registrant's Report on Form
6-K, as filed with the Securities and Exchange Commission on
May 12, 2005).
4.3* "Management's Discussion and Analysis" of the Registrant for
the fiscal year ended December 31, 2004 (incorporated by
reference to the Registrant's Annual Report on Form 40-F for
the fiscal year ended December 31, 2004, as filed with the
Securities and Exchange Commission on April 1, 2005).
4.4* The annual audited comparative consolidated financial
statements of the Registrant, together with the notes thereto
and Auditors' Report thereon, as at and for the fiscal year
ended December 31, 2004 (incorporated by reference to the
Registrant's Annual Report on Form 40-F for the fiscal year
ended December 31, 2004, as filed with the Securities and
Exchange Commission on April 1, 2005).
4.5* The unaudited interim comparative consolidated financial
statements of the Registrant, together with the notes thereto,
as at March 31, 2005 and for the three months ended March 31,
2005 and March 31, 2004 (incorporated by reference tthe
Registrant's Report on Form 6-K, filed with the Securities and
Exchange Commission on May 12, 2005).
4.6* "Management's Discussion and Analysis" of the Registrant as at
March 31, 2005 and for the three months ended March 31, 2005
and March 31, 2004 (incorporated by reference to the
Registrant's Report on Form 6-K, filed with the Securities and
Exchange Commission on May 12, 2005).
4.7* Material Change Report dated February 15, 2005 respecting the
Horizon Oil Sands Project.
5.1 Consent of PricewaterhouseCoopers LLP.
5.3 Consent of Parlee McLaws LLP.
5.4 Consent of Sproule Associates Limited.
5.5 Consent of Ryder Scott Company
5.6 Consent of Gilbert Laustsen Jung Associates Ltd.
6.1* Powers of Attorney.
7.1* Indenture dated as of July 24, 2001, between the Registrant and
The Bank of Nova Scotia Trust Company New York, as Trustee
(incorporated by reference to the Registrant's Registration
Statement on Form F-9, as filed with the Securities and
Exchange Commission on August 12, 2002).
7.2* Statement of Eligibility of the Trustee of Form T-1
(incorporated by reference to the Registrant's Registration
Statement on Form F-9, as filed with the Securities and
Exchange Commission on August 12, 2002).
9.1* Interest Coverage calculations as at December 31, 2004 and
March 31, 2005.
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* PREVIOUSLY FILED.