The following should be read in conjunction with the Consolidated Financial Statements included in this report. The Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles (GAAP) in Canada. The impact of significant differences between Canadian and United States (US) accounting principles on the financial statements is disclosed in Note 23 to the Consolidated Financial Statements. The date of this discussion is February 11, 2009. Unless otherwise noted, tabular amounts are in millions of Canadian dollars. Our discussion and analysis of our oil and gas activities include our Syncrude activities since the product produced from Syncrude competes in the oil and gas market. Oil and gas volumes, reserves and related performance measures are presented on a working interest before-royalties basis. We measure our performance in this manner consistent with other Canadian oil and gas companies. Where appropriate, we have provided information on an after-royalty basis in tabular format.

1 Investors should read the Special Note Regarding Forward-Looking Statements.
2 Canadian investors should read the Special Note to Canadian Investors which highlights differences between our reserve estimates and related disclosures that are otherwise required by Canadian regulatory authorities.