CALGARY , July 17, 2014 /CNW/ - Connacher Oil and Gas Limited (CLL - TSX;
"Connacher" or the "Company") provides an operational update for the
second quarter 2014 ("Q2 2014"), a finalized 2014-2015 capital plan
("Capital Plan"), AGM voting results and Q2 2014 conference call
details.
Operational Update
Based on field estimates, Connacher's Great Divide production for Q2
2014 averaged 13,700 bbl/d. Production was two per cent higher than the
prior quarter (Q1 2014 - 13,433 bbl/d).
Pads 101 and 102 at Pod One were taken offline on July 3 rd for approximately one day to complete tie-ins for the 9 new infill
wells. Steaming began on infills 101-F9 and 101-F10 on July 7 th. These wells are expected to be on production by August. The remaining
wells will be brought on sequentially in pairs and all of the new
infill wells are expected to be on production in the fourth quarter.
During the second quarter we achieved the lowest diluent blend ratio
("DBR") in the history of Great Divide at 14.4%. The DBR averaged 20%
for 2013 and 19% for the first quarter of 2014.
Capital Plan
Following closing of the first lien financing in May 2014 the Company
has finalized its Capital Plan, excluding maintenance capital, at $113
million . This includes the previously announced initial 2014 capital
expenditures of $50 million (nine new infill wells at Pod One). The
remaining $63 million will be spent primarily on the commercialization
of the SAGD+® process at Algar to be on stream in 2015 and the mini‐steam expansion
project at Pod One, which is expected to be implemented in 2015.
Funding for the Capital Plan will come from cashflow and proceeds from
the first lien term loan facility.
Annual General Meeting
A total of 166,675,747 Common Shares or 37% of our issued and
outstanding Common Shares were voted in connection with the annual
general meeting held on May 15, 2014 . Shareholders voted in favour of
each item of business. Each director nominee was elected by a
substantial majority as follows:
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For (%)
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Withheld (%)
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D. Hugh Bessell
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92.73
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7.27
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Christopher J. Bloomer
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92.62
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7.38
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Gregory A. Boland
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99.19
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.81
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Colin M. Evans
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92.55
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7.45
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Jennifer K. Kennedy
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92.39
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7.61
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Garry P. Mihaichuk
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92.60
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7.40
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Kelly J. Ogle
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98.53
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1.47
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Glen D. Roane
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98.60
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1.40
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Q2 2014 Conference Call Details
Connacher will host its quarterly conference call on August 14, 2014 at
8AM MDT . Interested participants can call in to (888) 231-8191. Please
use the Conference ID# 64220765. Participants are encouraged to call in five minutes prior to
commencement.
About Connacher
Connacher is a Calgary -based in situ oil sands developer, producer and marketer of bitumen. The Company
holds a 100 per cent interest in approximately 450 million barrels of
proved and probable bitumen reserves and operates two steam assisted
gravity drainage facilities located on the Company's Great Divide oil
sands leases near Fort McMurray, Alberta .
Forward Looking Information
This press release contains forward looking information, including
expectations for the anticipated timing for bringing the infill wells
on production.
Forward looking information is based on management's expectations
regarding the Company's future financial position, the Company's future
growth, results of operations and production, future commodity prices
and foreign exchange rates, future capital and other expenditures
(including the amount, nature and sources of funding thereof), plans
for and results of drilling activity, environmental matters, business
prospects and opportunities and future economic conditions. Forward
looking information involves significant known and unknown risks and
uncertainties, which could cause actual results to differ materially
from those anticipated. These risks include, but are not limited to:
the risks associated with the oil and gas industry (e.g., operational
risks in development, exploration and production; delays or changes in
plans with respect to exploration or development projects or capital
expenditures; the uncertainty of reserve and resource estimates, the
uncertainty of geological interpretations, the uncertainty of estimates
and projections relating to production, costs and expenses, and health,
safety and environmental risks), risk of commodity price and foreign
exchange rate fluctuations, risks associated with the impact of general
economic conditions, risks and uncertainties associated with
maintaining the necessary regulatory approvals and securing the
financing to proceed with the operation and continued expansion of the
Great Divide oil sands project.
In addition, reported average production levels may not be reflective of
sustainable production rates and future production rates may differ
materially from the production rates reflected in this press release
due to, among other factors, difficulties or interruptions encountered
during the production of bitumen.
Additional risks and uncertainties affecting Connacher and its business
and affairs are described in further detail in Connacher's Annual
Information Form for the year ended December 31, 2013 . Although
Connacher believes that the expectations in such forward looking
information are reasonable, there can be no assurance that such
expectations shall prove to be correct. The forward looking information
included in this press release is expressly qualified in its entirety
by this cautionary statement. The forward looking information included
herein is made as of the date of this press release and Connacher
assumes no obligation to update or revise any forward looking
information to reflect new events or circumstances, except as required
by law.
SOURCE Connacher Oil and Gas Limited