CALGARY, Jan. 29, 2014 /CNW/ - Connacher Oil and Gas Limited (TSX:CLL) ("Connacher" or the "Company") announces its initial capital plan for 2014.
With the completion of its 2013 capital plan and the successful results from new in-fill and SAGD wells the Company has committed to a near term capital plan aimed at increasing production and advancing the commercial SAGD+® process and mini-steam expansion projects. The initial 2014 capital plan is estimated to be up to $50 million. It is anticipated that the Company will drill up to 9 new in-fill wells at Pod One. Up-front engineering work would also continue on the commercial SAGD+® process project at Algar and the mini-steam expansion at Pod One and the ordering of long-lead items would begin. Funding for the initial capital plan will come from cashflow and, as necessary, the Revolving Credit Facility and first lien capability.
Based upon field estimates, production from Great Divide for January to date is 13,800 bbl/day.
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 drilling new in-fill wells, the advancement of the commercial SAGD+® process and the availability of financing.
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 by law.
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