CALGARY, March 11, 2016 /CNW/ - Connacher Oil and Gas Limited (CLC – TSX; "Connacher" or the "Company") announced today that its Board of Directors has initiated a process to investigate, evaluate and consider possible financing and restructuring alternatives available to the Company and has formed a special committee to assist the Board in this process. Connacher does not intend to make any further announcements in respect of this matter unless and until its Board of Directors has approved a particular course of action or otherwise determines that disclosure of such developments is material. There can be no assurance that this process will result in the completion of any financing or restructuring transaction.
The Company also announced that in accordance with the terms and conditions of the indenture dated May 8, 2015 relating to the issuance by Connacher of US$35 million of 12% convertible notes due 2018 (the "Notes"), it has elected to exercise its right to defer the cash payment of interest payable on March 31, 2016 upon all such Notes until June 30, 2016 (or such other interest payment date as Connacher may subsequently elect).
No cash interest will be due or paid on the Notes on March 31, 2016 related to the US$34,989,711 aggregate principal amount of Notes currently outstanding nor the US$2,492,142.17 of interest previously deferred.
For the three months ending March 31, 2016, deferred interest relating to the aggregate principal amount of Notes is US$1,124,455.59 and incremental deferred interest is US$181,409.27.
At March 31, 2016, total deferred interest will be US$3,804,007.03.
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 440 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.
SOURCE Connacher Oil and Gas Limited
For further information: Merle Johnson, Chief Executive Officer; Jeff Beeston, Vice President of Finance and Interim Chief Financial Officer, Connacher Oil and Gas Limited, Phone: (403) 538-6201, Fax: (403) 538-6225, Suite 900, 332 - 6th Avenue SW, Calgary, Alberta, T2P 0B2, email@example.com, www.connacheroil.com