                        CANADIAN NATURAL RESOURCES

                               6/13/94

                      Latest      52 week     YTD Pr    Div  Gross
                       Close   --- Range ---    Chg     Rate Yield
Canadian Natural Resou 22.13        n/a          0      0.00  0.0

                                 Est.        - Interim EPS -    -EBITDA 94-
          FY/IP       EPS93     EPS94 PE94   --Next- -YrAgo-    per/sh  p/e
CNQ       12/02Q      0.60R      1.00 22.1       n/a     n/a      2.65  8.3


1. CANADIAN NATURAL RESOURCES - A LARGE CAP, HIGH- GROWTH, LOW-COST CANADIAN
   E&P COMPANY THAT TRADES AT A PREMIUM VALUATION.  Canadian Natural
   Resources earned $.60 per share last year on cash flow of $1.64.  This
   year, analysts expect the company to earn $1.00 on cash flow of $2.65.  In
   1995, analysts expect earnings to increase to $1.40 and cash flow to
   $3.55.  Although analysts expect earnings and cash flow to continue to
   grow at a 30% annual rate, the stock trades at a multiple of 6.2 times
   1995 cash flow, a meaningful premium to the group's average.

2. $1.4 BILLION EQUITY MARKET CAP. PROVIDES HIGHER THAN AVERAGE LIQUIDITY.
   Canadian Natural Resources has 66 million common shares outstanding,
   trading at $22 per share.  The public float of the company totals over $1
   billion.

3. THE COMPANY'S COST STRUCTURE IS ONE OF THE BEST IN THE INDUSTRY.  CNQ's
   overall cash expenses are the third lowest in the Canadian E&P universe,
   at only $5.37 per BOE.  Cash flow per BOE, an important measure of future
   growth potential, is $8.25 per BOE.

4. CANADIAN NATURAL HAS BEEN EXTREMELY SUCCESSFUL IN ADDING LOW-COST
   RESERVES, AND SHOULD CONTINUE TO DO SO.  Canadian Natural's five-year
   finding costs from all sources are only $2.48 per BOE, easily giving CNQ
   the top position among the Canadian E&P universe.  However, a large
   portion of the company's historical success has come through
   acquisition/exploitation operations as well as pure exploration.  Over the
   next several years, as CNQ adds a higher percentage of reserves through
   the drillbit by drilling up its extensive 1.3 million acre undeveloped
   land position, finding costs may rise into the $3.50 range. However, even
   assuming these higher finding costs, CNQ would still have an implied
   reserve replacement of 235% (DCF per BOE of $8.25 divided by finding costs
   of $3.50).  Using CNQ's actual 5-year finding cost of $2.48 per BOE, the
   company's implied reserve replacement rate is a phenomenal 333%.

5. CONCENTRATED POSITION ALLOWS EFFICIENT OPERATIONS.  CNQ's reserves are
   fairly well concentrated in two areas of Western Canada: a Northeastern
   British Columbia/Northwestern Alberta Area, and a Northeastern Alberta
   area which extends southeast into Saskatchewan.  In all, over 80% of the
   company's reserves are located in these two core areas.

6. AGGRESSIVE CAPITAL PROGRAM WILL DRIVE STRONG VOLUME GROWTH.  CNQ's capital
   program for this year totals $290 million.  Even assuming that finding
   costs increase 40% from the company's five-year historical average,
   reserve replacement this year will be over 400%.  Therefore, the company's
   production volumes, which should average 255 mmcf/d of gas and 13,000 b/d
   of oil this year, should increase dramatically next year. Analysts
   estimate that oil volumes will increase 23% to 16,000 b/d and that gas
   volumes will increase 33% to 340 mmcf/d.  Analysts would expect overall
   production growth to exceed 25% per year for each of the next 3-5 years.

7. BALANCE SHEET VERY STRONG WITH DEBT LESS THAN ONE YEAR OF CASH FLOW.
   Pro-forma for a recent equity offering, CNQ has approximately $95 million
   in net debt, versus expected 1994 cash flow of $167 million.  In other
   words, CNQ could pay down its debt in about 6 and a half months if all
   cash flow were dedicated to debt repayment.

8. A VERY GOOD CANADIAN GAS COMPANY, BUT ITS NO BARGAIN.  CNQ clearly
   possesses the key attributes of a focused, high-quality management team,
   concentrated property portfolio, high level of operatorship, and a low
   cost structure.  The company is an industry leader in adding low-cost
   reserves, and should enjoy continued success in this area with its large
   land position and skilled exploration team.  However, the stock does trade
   at 6.2 times 1995 cash flow versus a universe average of 5.5 times, a 13%
   premium.  This is on the high side of the company's historical average
   premium.  On a debt-adjusted basis, CNQ trades at 6.3 times 1995 cash flow
   versus a universe average of 5.8 times.  Analysts believe that CNQ shares
   offer upside in the range of 15-20% over the next 6-12 months.  The shares
   are very appropriate for investors looking to build exposure to the
   Canadian gas story.
