Connacher Provides Second Quarter 2013 Operational Update

CALGARY, July 16, 2013 /CNW/ - Connacher Oil and Gas Limited (CLL - TSX; 
"Connacher" or the "Company") is pleased to provide the following operational 
update for Q2 2013 and confirms the timing of its Q2 2013 conference call and 
call-in details. 
Production 
Connacher's production for Q2 2013 averaged 11,500 bbl/d based on field 
estimates. Production was 7% lower than the prior quarter (Q1 2013 12,406 
bbl/d) due to planned interruptions associated with steam generator upgrades 
completed at Algar in May. Following completion of the upgrades, field 
estimates for June production averaged 12,500 bbl/d. 
Operations 
Our 2013 drilling program was completed in Q2 2013 and consisted of four 
infill wells on Pad 102 and four new well pairs at Pad 104. All of the wells 
were completed in Q2 2013 and construction of surface facilities and tie-in is 
continuing at both pads. 
We expect to begin steaming the new well pairs at Pad 104 at the end of Q3 
2013 for approximately 90 days. These wells will then be converted to 
production by the end of Q4 2013. The Pad 102 infill wells are expected to be 
on steam for 30 to 60 days. The first well will begin steaming in July. All 
four wells are expected to be placed on production by the end of Q4 2013. The 
replacement well pair on Pad 202 at Algar was placed on production in early 
July. 
As a result of the SAGD+ trial on well pair 203-1 at Algar, average bitumen 
production rates were approximately 30% higher in the first four months of 
2013 than the four months prior to the beginning of the test in May 2012. 
Steam injection was approximately 10% less over the same comparative period. 
Solvent injection rates over the entire test period have averaged 6% of the 
steam volume injected and it is estimated that 92% of the cumulative solvent 
injected has been recovered. Five months into the test on 203-1, the SOR 
reached a level approximately 33% lower than SORs prior to the test and have 
remained at these lower values despite changes to the steam rate. In May 2013 
the producer well was converted from gas lift to a submersible pump and the 
results of this change are being assessed. 
We have been piloting SAGD+ at a fourth well at Algar, 203-4, since July 2nd. 
The trial will continue on both 203-1 and 203-4 pairs through the end of 2013. 
We are also planning to add an additional trial on at least one of the new 
well pairs at Pad 104. 
Regulatory approval for the SAGD+ commercial project was received on June 5th. 
We are currently evaluating the feasibility of a SAGD+ commercial project as 
part of our 2014 capital plan. 
During Q2 2013 a key focus of our operations was to reduce the amount of 
diluent in our dilbit. As a result, we have reduced the diluent blend ratio 
("DBR") from 25% to 20% and have seen reductions as low as 18%. We expect this 
reduction in the DBR to be sustainable. Due to this success, we do not plan to 
complete the Diluent Recovery Unit (the "DRU") in 2013. Tankage previously 
completed for the DRU will be tied in to increase storage capacity at Pod One. 
We will continue to evaluate the future of the DRU as part of our 2014 capital 
plan. 
Marketing 
In Q2 2013 bitumen volumes shipped to rail destinations outside of Alberta 
averaged approximately 9,200 bbl/d (80% of sales) compared to approximately 
6,800 bbl/d (55% of sales) in Q1 2013. The balance of the dilbit sales were to 
intra-Alberta markets. 
For the balance of 2013 the Company has approximately 7,500 bbl/d of 
production hedged at WTI prices ranging from US$90-$105. For 2014 the Company 
has approximately 4,700 bbl/d hedged at WTI prices ranging from US$90-$96. 
Q2 2013 Conference Call Details 
Connacher will host its quarterly conference call on August 15, 2013 at 8AM 
MDT. Interested participants can call in to (888) 231-8191. Please use the 
Conference ID# 98592661. Participants are encouraged to call in 5 minutes 
prior to commencement. 
About Connacher 
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 placing wells on steam injection and the anticipated 
timing for converting such wells to production, the commissioning of 
additional SAGD+ trials, the continued sustainability in the reduction in the 
DBR and future plans for the DRU. 
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.  
Contact 
Chris Bloomer Chief Executive Officer 
Greg Pollard 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 inquiries@connacheroil.com www.connacheroil.com 
SOURCE: Connacher Oil and Gas Limited 
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CO: Connacher Oil and Gas Limited
ST: Alberta
NI: OIL CONF  
-0- Jul/16/2013 22:00 GMT
 
 
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