CALGARY, July 17, 2014 /CNW/ - Connacher Oil and Gas Limited (CLL - TSX; "Connacher" or the "Company") provides an operational update for the second quarter 2014 ("Q2 2014"), a finalized 2014-2015 capital plan ("Capital Plan"), AGM voting results and Q2 2014 conference call details.
Based on field estimates, Connacher's Great Divide production for Q2 2014 averaged 13,700 bbl/d. Production was two per cent higher than the prior quarter (Q1 2014 - 13,433 bbl/d).
Pads 101 and 102 at Pod One were taken offline on July 3rd for approximately one day to complete tie-ins for the 9 new infill wells. Steaming began on infills 101-F9 and 101-F10 on July 7th. These wells are expected to be on production by August. The remaining wells will be brought on sequentially in pairs and all of the new infill wells are expected to be on production in the fourth quarter.
During the second quarter we achieved the lowest diluent blend ratio ("DBR") in the history of Great Divide at 14.4%. The DBR averaged 20% for 2013 and 19% for the first quarter of 2014.
Following closing of the first lien financing in May 2014 the Company has finalized its Capital Plan, excluding maintenance capital, at $113 million. This includes the previously announced initial 2014 capital expenditures of $50 million (nine new infill wells at Pod One). The remaining $63 million will be spent primarily on the commercialization of the SAGD+® process at Algar to be on stream in 2015 and the mini‐steam expansion project at Pod One, which is expected to be implemented in 2015. Funding for the Capital Plan will come from cashflow and proceeds from the first lien term loan facility.
Annual General Meeting
A total of 166,675,747 Common Shares or 37% of our issued and outstanding Common Shares were voted in connection with the annual general meeting held on May 15, 2014. Shareholders voted in favour of each item of business. Each director nominee was elected by a substantial majority as follows:
|For (%)||Withheld (%)|
|D. Hugh Bessell||92.73||7.27|
|Christopher J. Bloomer||92.62||7.38|
|Gregory A. Boland||99.19||.81|
|Colin M. Evans||92.55||7.45|
|Jennifer K. Kennedy||92.39||7.61|
|Garry P. Mihaichuk||92.60||7.40|
|Kelly J. Ogle||98.53||1.47|
|Glen D. Roane||98.60||1.40|
Q2 2014 Conference Call Details
Connacher will host its quarterly conference call on August 14, 2014 at 8AM MDT. Interested participants can call in to (888) 231-8191. Please use the Conference ID# 64220765. Participants are encouraged to call in five minutes prior to commencement.
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 450 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.
Forward Looking Information
This press release contains forward looking information, including expectations for the anticipated timing for bringing the infill wells on production.
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, 2013. 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