Canadian Natural began construction of Kirby North, shortly after receiving regulatory approval in May 2014. Kirby North operations located in the McMurray reservoir and will employ SAGD technology for the recovery of bitumen. In the first quarter of 2015, the Kirby North project was deferred due to the fall in commodity prices. Most of the major equipment has been purchased and the Company’s technical teams having been continuously working to identify opportunities to lower the cost structure of the project. In 2016, the Company worked through the Kirby North construction process and its targeted drilling plans in order to ensure cost savings identified can be captured. In late 2017, the Company reinitiated the Kirby North project with planned construction and well-pair drilling in 2018 and 2019, with targeted first oil Q1 2020.The project is targeted to include a central processing facility for bitumen with a peak production rate of 40,000 bbl/d of bitumen. The initial development plans for 2018 include drilling 49 producers and 44 injectors. The final drilling, targeted for 2019 will see 11 producers and 16 injectors drilled.