Certain statements in this report, including those appearing in Items 1 and 2 — Business and Properties and Item 7 — Management’s Discussion and Analysis of Financial Condition and Results of Operations, constitute “forward-looking statements” (within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) or “forward-looking information” (within the meaning of applicable Canadian securities legislation). Such statements or information (together “forward-looking statements”) are generally identifiable by the forward-looking terminology used such as “anticipate”, “believe”, “intend”, “plan”, “expect”, “estimate”, “budget”, “outlook”, “forecast” or other similar words and include statements relating to or associated with individual wells, regions or projects. Any statements regarding the following are forward-looking statements:

• future crude oil, natural gas or chemical prices;
• future production levels;
• future cost recovery oil revenues from our Yemen operations;
• future capital expenditures and their allocation to exploration and development activities;
• future earnings;
• future asset dispositions;
• future sources of funding for our capital program;
• future debt levels;
• availability of committed credit facilities;
• possible commerciality;
• development plans or capacity expansions;
• future ability to execute dispositions of assets or businesses;
• future cash flows and their uses;
• future drilling of new wells;
• ultimate recoverability of current and long-term assets;
• ultimate recoverability of reserves or resources;
• expected finding and development costs;
• expected operating costs;
• future demand for chemical products;
• estimates on a per share basis;
• sales;
• future expenditures and future allowances relating to environmental matters;
• dates by which certain areas will be developed or will come on stream; and
• changes in any of the foregoing.

Statements relating to “reserves” or “resources” are forward-looking statements, as they involve the implied assessment, based on estimates and assumptions that the reserves and resources described exist in the quantities predicted or estimated, and can be profitably produced in the future.

The forward-looking statements are subject to known and unknown risks and uncertainties and other factors which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Such factors include, among others:

• market prices for oil and gas and chemical products;
• our ability to explore, develop, produce and transport crude oil and natural gas to markets;
• the results of exploration and development drilling and related activities;
• volatility in energy trading markets;
• foreign-currency exchange rates;
• economic conditions in the countries and regions in which we carry on business;
• governmental actions including changes to taxes or royalties, changes in environmental and other laws and regulations;
• renegotiations of contracts;
• results of litigation, arbitration or regulatory proceedings; and
• political uncertainty, including actions by terrorists, insurgent or other groups, or other armed conflict, including conflict between states.

These risks, uncertainties and other factors and their possible impact are discussed more fully in the section, titled Risk Factors in Item 1A and Quantitative and Qualitative Disclosures about Market Risk in Item 7A. The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these factors are interdependent, and management’s future course of action would depend on our assessment of all information at that time.

Although we believe that the expectations conveyed by the forward-looking statements are reasonable based on information available to us on the date such forward-looking statements were made, no assurances can be given as to future results, levels of activity and achievements. Undue reliance should not be placed on the statements contained herein, which are made as of the date hereof and, except as required by law, we undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained herein are expressly qualified by this cautionary statement.