Connacher Announces Q4 2013 and 2013 Year End Results

 CALGARY, March 19, 2014 /CNW/ - Connacher Oil and Gas Limited (CLL - TSX;  "Connacher" or the "Company") today released its financial and operating  results for 2013, a summary of which is set out below (all amounts are in  Canadian dollars unless otherwise noted). The quarterly conference call and  annual general meeting details are provided below. The Company's consolidated  annual financial statements for the year ended December 31, 2013 and the  related management's discussion and analysis of the operating and financial  results can be accessed on Connacher's website at and on  SEDAR at  2013 Highlights:            --  Adjusted EBITDA increased 31 per cent to $14.6 million in Q4             2013 (Q4 2012 - $11.2 million) and increased 112 per cent to             $86.5 million in 2013 (2012 - $40.7 million). For both periods,             the increase is attributable to higher bitumen netbacks and             reduced general and administrative costs, offset by realized             risk management losses         --  Q4 2013 funds flow used in continuing operations was $5.7             million (Q4 2012 - funds flow used $7.8 million). In 2013,             funds flow from continuing operations was $6.9 million (2012 -             funds flow used $40.9 million)         --  Connacher ended the year with a cash balance of $55.6 million             (2012 - $126.8 million), working capital of $19.6 million (2012             - $111.7 million which included net proceeds from the sale of             Montana Refining Inc. and conventional oil and gas assets)         --  The 2013 capital program was completed within budget and on             schedule. Capital expenditures of $93.7 million (2012 - $37.1             million) included $69.7 million focused primarily on four new             infill wells and four new SAGD well pairs and related             facilities at Pod One, and $22.6 million for maintenance             requirements. Q4 2013 capital expenditures totaled $9.7 million             (Q4 2012 - $11.4 million) mainly for completion of surface             facilities to tie in the four new well pairs at Pad 104         --  Full year production averaged 11,783 bbl/d (2012 - 11,881             bbl/d). Production was slightly below 2012, as the impact of             our 2013 capital program wasn't realized until the fourth             quarter of 2013. Q4 2013 production averaged 11,375 bbl/d (Q4             2012 - 11,945 bbl/d), and was lower due to scheduled             interruptions during the commissioning of the new well pairs at             Pad 104 and a temporary reduction in natural gas supply in             Northern Alberta necessitating a turndown in steam generation             at Algar. Preventative maintenance was advanced and performed             during Q4 2013 and also reduced production         --  Connacher's proved producing reserves as at December 31, 2013             increased by 13 per cent over the prior year. The Company also             received reserve recognition in the year end 2013 reserve             report for the approved commercial SAGD+® process project at             Algar         --  The Company's diverse customer portfolio resulted in net             realized bitumen prices in 2013 of $53.93 bbl (2012 - $41.35             bbl) and in Q4 $50.70 bbl (Q4 2012 - $41.55 bbl)  2013 Financial and Operational Highlights  The Company fully exited its downstream refining business and its conventional  oil and gas business ("Discontinued Operations"), effective October 1, 2012  and September 14, 2012, respectively. The following highlights focus on the  financial and operating results of Connacher's continuing oil sands business  ("Continuing Operations").                                                                                      FINANCIAL                                                                  ($000 except     per share     amounts)          Q4 2013    Q4 2012       %        2013        2012       %     Revenue, net                                                               of royalties     (Continuing     Operations)       $93,209    $94,959     (2)     427,861    $384,946      11     Adjusted                                                                   EBITDA     (Continuing     Operations)     (1)                14,609     11,181      31      86,470      40,699     112     Net earnings                                                               (loss)     (Continuing     Operations)      (41,350)   (40,527)       2   (122,390)   (109,172)      12     Net earnings                                                               (loss)     (Discontinued     Operations)             -     33,360   (100)           -      24,703   (100)     Net earnings                                                               (loss)           (41,350)    (7,167)     477   (122,390)    (84,469)      45     Per share,                                                                 basic and     diluted     (Continuing     Operations)(2)     (0.09)     (0.09)       -      (0.27)      (0.24)      13     Per share,                                                                 basic and     diluted     (total) (2)        (0.09)     (0.02)     350      (0.27)      (0.19)      42     Capital                                                                    expenditures        9,736     11,423    (15)      93,727      37,129     152     Cash on hand       55,610    126,844    (56)                                     Working                                                                    capital            19,574    111,686    (82)                                     Long-term debt    890,751    849,938       5                                     Shareholders'                                                              equity            222,022    342,900    (35)                                                                                                                      OPERATIONAL       Q4 2013    Q4 2012       %        2013        2012       %     Daily     production     volumes                                                                    Bitumen     (bbl/d)            11,375     11,945     (5)      11,783      11,881     (1)     Pricing     ($/bbl), net                                                               of diluent and     transportation      50.70      41.55      22       53.94       41.35      30                    (1)      Adjusted EBITDA is a non-GAAP measure, which is defined in the              Advisory section of the Company's management's discussion and              analysis for the years ended December 31, 2013 and December              31, 2012 ("MD&A"). Adjusted EBITDA is reconciled to EBITDA and              net loss in the MD&A     (2)      Basic and diluted amounts are the same as options are not              in-the-money                 Reserves  Proved producing reserves increased by 13 per cent to 22.5 million barrels  with the inclusion of the recently drilled infill wells and well pairs at Pod  One. Production in 2013 totaled 4.3 million barrels.  Estimated proved ("1P") bitumen reserves totaled approximately 212 million  barrels, a decrease of one per cent over year-end 2012 reserves. The ten per  cent present value ("10% PV") of 1P bitumen reserves is approximately $900  million as compared to $1.0 billion in 2012.  Proved and probable ("2P") reserve volumes were approximately 446 million  barrels of bitumen, down one per cent from a year earlier. The 10% PV of these  2P bitumen reserves decreased by four per cent to approximately $1.69 billion,  due to GLJ's estimates for future capital and operating costs, slightly lower  future commodity prices, and the timing of the Algar expansion.  Connacher has been successfully piloting the SAGD+® process for three years.  Based on its success and recent AER regulatory approvals for a commercial  project, GLJ assigned 2P reserves at Algar reflecting implementation of that  process in addition to steam-assisted gravity drainage ("SAGD"). A commercial  project of the SAGD+® process at the Algar facility is planned for 2015. Pod  One and the Algar expansion areas do not have SAGD+® process reserves  assigned at this time. These areas are assumed to continue to have infill  wells in addition to SAGD in the 2P reserves category.  Please refer to the Company's media release dated February 25, 2014 for  additional details with respect to the 2013 reserve report and the annual  information form for 2013 which will be available on Connacher's website at and SEDAR at  2014 Update  During the first quarter of 2014 Connacher successfully completed drilling a  water disposal well at Great Divide. When operational in late 2014, the water  disposal well should contribute to decreasing operating costs for Great  Divide. The Company also commenced drilling the planned nine infill wells at  Pod One.  Actual Great Divide production averaged 13,661 bbl/d for the first two months  of 2014.  Shareholders Meeting  The annual meeting of shareholders of the Company is scheduled to be held in  Calgary at 2 P.M. on May 15, 2014 at the Hyatt Regency Calgary, Alberta. At  the Meeting, shareholders will be voting on the election of directors and the  appointment of auditors.  Year End 2013 and Q4 Conference Call Details  Connacher will host its year end 2013 and Q4 conference call on March 20, 2014  at 8AM (Calgary time). Interested participants can call in to (888) 231-8191.  Please use the Conference ID# 35536113. Participants are encouraged to call in  5 minutes prior to commencement.  For those wishing to access the call online, the webcast URL is:  About Connacher  Connacher Oil and Gas Limited is a focused in situ oil sands developer,  producer and marketer of bitumen. The Company's principal assets are holdings  in the Great Divide oil sands project in northern Alberta, south of Fort  McMurray. Connacher's first SAGD project at Great Divide, Pod One, has been  producing bitumen since late 2007, with commercial production commencing March  1, 2008. Algar commenced producing bitumen in August 2010 and commerciality  was achieved October 1, 2010. Production from Great Divide since startup  through December 31, 2013 has totaled approximately 21.5 million barrels of  bitumen. Such amounts have been deducted from earlier estimates of proved  reserves prior to the calculation of reserves as at December 31, 2013.  Forward Looking Information  This press release contains forward looking information including but not  limited to the expectations for future capital expenditures and the funding  thereof, the timing of the future development of the SAGD+® process  commercial project and mini-steam expansion at Pod One and the anticipated  impact thereof, future production and the timing thereof, future well drilling  and development activities and the timing of production therefrom,  expectations regarding future commodity prices, future capital expenditures, ,  and general operational and financial performance in future periods.  Forward looking information is based on management's expectations regarding  the Company's future financial position, 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  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),  the risk of commodity price and foreign exchange rate fluctuations, risks  associated with the impact of general economic conditions, risks and  uncertainties associated with securing and maintaining the necessary  regulatory approvals and financing to proceed with the operation and continued  expansion of the Great Divide oil sands project.  Information relating to "reserves" are deemed to be forward-looking  information, as they involve the implied assessment, based on certain  estimates and assumptions, that the reserves described exist in the quantities  predicted or estimated, and can be profitably produced in the future to  achieve the future net revenue calculated in accordance with certain  assumptions. The assumptions relating to the reserves reported herein are  contained in the reports of GLJ Petroleum Consultants Ltd. December 31, 2013  and December 31, 2012 and are summarized in Connacher's Annual Information  Form for the year ended December 31, 2013 and December 31, 2012, both of which  are available on the System for Electronic Document Analysis and Retrieval  (SEDAR) at Future net revenues associated with reserves do not  necessarily represent fair market value.  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  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  To view this news release in HTML formatting, please use the following URL:  CO: Connacher Oil and Gas Limited ST: Alberta NI: OIL ERN