CALGARY, Jan. 20, 2012 /CNW/ - After the recently announced management
changes, Connacher Oil and Gas Limited (TSX: CLL) wishes to update
shareholders and other investors regarding its future plans. The
company continues to experience strong financial results and expects to
continue to do so assuming crude oil and bitumen prices, as well as
favorable heavy oil differentials, continue at or near current levels.
The company has sufficient liquidity to meet all of its current
financial obligations, including the repayment of its convertible
debentures in June, interest payments on its Senior Secured Notes in
February and August and funding its announced 2012 capital program.
The company's Board of Directors has initiated a process to review
Connacher's business plan and to identify, examine and consider all
strategies available to the company, both near and long term, in order
to prudently determine the optimal course of action for the company.
Goldman Sachs has been engaged to assist the Board of Directors in
connection with this strategic review. Connacher does not intend to
make any further announcements regarding its review unless and until
its Board of Directors has approved a particular course of action or
otherwise deems disclosure of developments is appropriate.
In the meantime, the Company would like to reassure shareholders and
other stakeholders that the company's day-to-day operations are stable
with no compromise in operating activities, thanks to the many
dedicated and qualified Officers and staff of the company.
Ms. Brenda Hughes was appointed Chief Financial Officer of the company
in January 2012. Ms. Hughes is a Chartered Accountant with in excess
of 15 years experience with a variety of Canadian crude oil and natural
gas companies. Ms. Hughes joined the company in May 2010.
Mr. Merle Johnson is Vice President Engineering and has been with the
company since June 2007. Mr. Johnson is a Professional Engineer with
extensive oil sands and heavy oil experience and is currently
responsible for all engineering disciplines in Canada, with a primary
emphasis on the management and development of Connacher's oil sands
properties at Great Divide.
Mr. Stephen Marston is Vice President Exploration, a position he has
held since January 2006. Mr. Marston is a Professional Geophysicist
with 25 years of industry experience with both major and independent
oil companies. Mr. Marston is responsible for the company's overall
exploration activity, acquisitions and divestitures and provides
leadership in the implementation of the company's growth strategy.
Mr. Mike Dusterhoff is Senior Vice President Marketing and Downstream
Development of Montana Refining Company, Inc., the company's
wholly-owned subsidiary, ("Montana Refining"). Mr. Dusterhoff has over
40 years of experience in the oil and gas industry and has spent the
last 25 years with Montana Refining in various positions, including
transportation, logistics, supply, marketing and downstream
development. Mr. Dusterhoff is currently responsible for the movement
of diluent and dilbit in and out of Connacher's oil sands projects and
all of the marketing for Montana Refining.
Mr. Dana Leach is the Vice President, Refining Operations of Montana
Refining and has been with Montana Refining for 37 years in increasing
positions of seniority. His first nine years at the Refinery were with
Phillips Petroleum Company where he worked in multiple operating
positions; his last 28 years have been in various management roles at
Montana Refining including Operations Supervisor, Operations Manager
and Refinery Manager. Mr. Leach is responsible for all the daily
operations at the Refinery.
Mr. Hans Kramer is the company's Oil Sands Manager, a position he has
held for more than five years. Mr. Kramer has been involved with the
oil industry for 26 years, and his operating experience is extensive
and expands to all facets of heavy oil extraction. Mr. Kramer is
responsible for the company's day to day operations at the Pod One and
Algar facilities at Great Divide.
As part of its review process, the Board of Directors will also be
assessing its future executive and managerial requirements. During this
interim period, Colin M. Evans and Kelly J. Ogle will continue as
co-Managing Directors of the company.
Connacher is a Calgary-based energy company with an integrated strategy.
Its primary asset is its 100 percent ownership of bitumen reserves and
production from two steam-assisted gravity drainage ("SAGD") projects,
Pod One and Algar, at its Great Divide oil sands lease block in
northeastern Alberta. Connacher also owns and operates a profitable
9,500 bbl/d heavy crude oil refinery in Great Falls, Montana.
Conventional lands, reserves and production are also owned in central
Forward Looking Information
This press release contains forward‐looking information including but
not limited to, anticipated future operating and financial results,
liquidity and capital resources, the planned review of the company's
business plan and the identification, examination and consideration of
strategies available to the company, including an assessment of future
executive and managerial requirements.
Forward‐looking information is based on management's expectations
regarding future growth, results of operations, production, future
commodity prices, heavy oil differentials 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 operational risks in development,
exploration, production and start‐up activities; 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 estimates and projections relating to production, costs
and expenses, and health, safety and environmental risks; the risk of
commodity price and foreign exchange rate fluctuations; risks
associated with the impact of general economic conditions; sales
volumes and risks and uncertainties associated with securing and
maintaining the necessary regulatory approvals and financing to proceed
with the continued expansion of the Great Divide oil sands project.
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 in this press release is made as of January 19,
2012 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
For further information:
Colin M. Evans or Kelly J. Ogle
Phone: 403 538-6201