CALGARY, Oct. 15, 2013 /CNW/ - Connacher Oil and Gas Limited (TSX:CLL)
("Connacher" or the "Company") provides the following operational
update for the third quarter 2013 ("Q3 2013") and the timing and
call-in details for the Q3 2013 investor conference call.
Connacher's Great Divide production for Q3 2013 averaged 11,800 bbl/d
based on field estimates. Production was 2% higher than the prior
quarter (Q2 2013 11,572 bbl/d).
September production averaged 12,100 bbl/d based on field estimates.
During the month the four infill wells at Pod One were converted to
production. The infill wells were each steamed for approximately 30
days and all four wells were on production by the end of September.
Connacher had previously expected that these wells would be on
production by the end of Q4 2013.
The Company began steaming the four new well pairs at Pad 104 at the end
of September. These wells are expected to be ready to convert to
production after approximately 90 days.
The SAGD+® process trial is continuing on 203-1 through to the end of 2013. The
trial on 203-4 was discontinued to allow for flexibility in the ongoing
trial at 203-1. Results from the SAGD+® process continue to demonstrate commerciality through increased
recovery and lower steam oil ratios.
A key operational focus has been to reduce the amount of diluent used in
our process and dilbit sales. The diluent blend ratio ("DBR") averaged
18.5% in Q3 2013 based on field estimates, which is the lowest average
ratio achieved in a quarter to date.
In Q3 2013 bitumen volumes moved to customers outside of Alberta
averaged approximately 10,850 bbl/d (92% of total bitumen sales)
compared to approximately 9,200 bbl/d (80% of total bitumen sales) in
Q2 2013. The balance of the bitumen sales were to intra-Alberta
Connacher successfully completed the first test of an 80 car unit train
in September. Moving dilbit utilizing unit trains can significantly
reduce the turnaround time of rail cars from customers and materially
reduce transportation costs.
For the balance of 2013, the Company has 7,650 bbl/d of production
hedged at minimum WTI prices ranging from US$89-$100. For 2014, the
Company has approximately 4,700 bbl/d hedged at minimum WTI prices
ranging from US$90-$96.
Q3 2013 Conference Call Details
Connacher will host its quarterly conference call on November 14, 2013
at 8AM MDT. Interested participants can call in to (888) 231-8191.
Please use the Conference ID# 87705434. Participants are encouraged to
call in 5 minutes prior to commencement.
Connacher is a Calgary-based in-situ oil sands developer, producer and
marketer of bitumen. The Company holds a 100 percent interest in
approximately 500 million barrels of proved and probable bitumen
reserves and operates two steam assisted gravity drainage ("SAGD")
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 timing of converting wells to production, the
continuation of SAGD+® process trials and the continued sustainability of the reduction in
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, 2012. 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
SOURCE: Connacher Oil and Gas Limited
For further information:
Chief Executive Officer
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