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
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 email@example.com www.connacheroil.com
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