Breaking News


Connacher Announces Q1 2014 Results

 CALGARY, May 14, 2014 /CNW/ - Connacher Oil and Gas Limited (CLL - TSX;  "Connacher" or the "Company") announces its financial and operating results  for the quarter-ended March 31, 2014 ("Q1 2014") as outlined below (all  amounts are in Canadian dollars unless otherwise noted).  Q1 2014 Highlights:            --  Connacher's production for Q1 2014 increased by 8% to 13,433             bbl/d (Q1 2013 - 12,406 bbl/d). Production increases were             attributable to the Company's four new well pairs at Pad 104             and four infill wells at Pod One         --  Revenue, net of royalties, increased 4% to $105.0 million in Q1             2014 (Q1 2013 - $101.3 million)         --  Net realized bitumen sales price increased in Q1 2014 to             $54.28/bbl (Q1 2013 - $38.31/bbl) due to higher dilbit sales             prices, decreased diluent usage and lower transportation and             handling costs         --  Adjusted EBITDA increased 2% to $10.9 million in Q1 2014 (Q1             2013 - $10.7 million) due to higher bitumen netbacks, offset by             higher realized risk management losses         --  Operating costs increased 42% to $31.6 million in Q1 2014 (Q1             2013 - $22.4 million) due to higher natural gas prices,             temporary treating costs arising from the start-up of new SAGD             well pairs at Pod One and the costs to repair a natural gas             line leak at Algar         --  In order to mitigate volatility in natural gas costs, Connacher             is now hedging 60% of anticipated natural gas consumption for             the remainder of 2014 and 30% for 2015         --  Connacher closed Q1 2014 with a cash balance of $19.6 million             (Q4 2013 - $55.6 million) and available credit facilities of             $56.9 million (Q4 2013 - $76.7 million), net of cash drawings             of $10 million (Q4 2013 - $nil) and outstanding letters of             credit of $28.1 million (Q4 2013 - $18.3 million)         --  Q1 2014 capital expenditures totaled $18.1 million (Q1 2013 -             $20.3 million). Q1 2014 expenditures were focused primarily on             the drilling of six of nine planned new infill wells at Pod             One. As of May 11, all nine wells have been drilled and will             begin to impact production in the second half of 2014  Q1 2014 Financial and Operational Summary                                                                        FINANCIAL ($000 except per share                                 amounts)                                Q1 2014    Q1 2013   % Change     Revenue, net of royalties              $104,952   $101,320          4     Adjusted EBITDA (1)                      10,948     10,682          2     Net earnings (loss)                    (62,613)   (46,566)         34     Funds flow (used) (1)                  (10,185)    (9,111)         12     Per share, basic and diluted (total)     (0.14)     (0.10)         40     Capital expenditures                     18,085     20,251       (11)     Cash on hand                             19,631     81,714       (76)     Working capital surplus (deficiency)   (13,726)     76,957      (118)     Long-term debt                          913,764    861,828          6     Shareholders' equity                    159,529    296,746       (46)  ((1) Adjusted EBITDA and funds flow (used) are non-GAAP measures, which are  defined in the Advisory section of the Company's management's discussion and  analysis for the period ending March 31, 2014 )                                                                     OPERATIONAL                           Q1 2014   Q1 2013   % Change     Daily bitumen production (bbl/d)       13,433    12,406          8     Daily bitumen sales (bbl/d)            12,364    12,679        (2)     Pricing ($/bbl) (net of diluent and     54.28     38.31         42     transportation)  First Lien Financing  As previously announced, Connacher has engaged Credit Suisse to act as sole  lead arranger and bookrunner in the arrangement of a first lien term loan  facility in an aggregate principal amount of US dollar equivalent of C$140  million (the "Term Loan Facility"). The Company's intention is to concurrently  amend and reduce the existing $95 million amended and restated senior secured  revolving credit facility (the "Credit Facility") to $30 million.  Connacher received unanimous consent from the lenders under the Credit  Facility on May 2,( )2014 to extend the maturity date from May 31, 2014 to  July 31, 2014 and to waive the consolidated total debt to total capitalization  ratio covenant under the Credit Facility at March 31, 2014 and June 30, 2014.  Q1 2014 Conference Call Details  Connacher will host its quarterly conference call on May 15, 2014 at 8AM MDT.  Interested participants can call in to (888) 231-8191. Please use the  Conference ID# 27180361. Participants are encouraged to call in 5 minutes  prior to commencement of the call.  About Connacher  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 but not  limited to, the expectations relating to the arrangement of the Term Loan  Facility and the amendment and reduction of the existing Credit Facility and  the timing thereof .  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:  that the Company may not be successful in the syndication of the  Term Loan Facility, that the Term Loan Facility may not provide adequate funds  to fund the Company's growth capital program, 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  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 CONF  
Press spacebar to pause and continue. Press esc to stop.