CALGARY, Sept. 25, 2012 /CNW/ - Connacher Oil and Gas Limited (TSX: CLL); ("Connacher" or the "Company") announces that it has been advised that the Energy Resources Conservation Board ("ERCB") has granted approval (Approval 10587H) to application No. 1650859 for the development of its 24,000 bbl/d Great Divide Expansion Project.
The Great Divide Expansion Project is a steam assisted gravity drainage project ("SAGD") that will expand the existing Algar SAGD project site from 10,000 bbl/d bitumen capacity to 34,000 bbl/d. Total potential approved production capacity for the Great Divide area is now 44,000 bbl/d. The Algar SAGD project commenced operations in 2010.
This approval represents a significant milestone in the future development of the company's substantial reserve base and allows the company to advance its evaluation of the costs, timing and financing alternatives available to pursue this expansion project.
Connacher Oil and Gas Limited is a Calgary‐based bitumen exploration, development and production company. The Company's principal assets are holdings in the Great Divide oil sands project in northern Alberta.
This press release contains forward-looking information relating to the expansion of bitumen productive capacity at Great Divide.
Forward looking information is based on management's expectations regarding future growth, results of operations, 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 and uncertainties associated with maintaining the necessary regulatory approvals and obtaining and maintaining the financing to proceed with the operation and expansion of the Great Divide oil sands project.
In addition, design capacity is not necessarily indicative of the stabilized production levels that may ultimately be achieved at Connacher's Algar SAGD project site 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, 2011, which is available at www.sedar.com. 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
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