Connacher Provides Third Quarter 2013 Operational Update and Conference Call
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
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 markets.
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
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 the DBR.
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
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
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
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