Connacher Announces New First Lien Term Loan Facility

 CALGARY, May 22, 2014 /CNW/ - Connacher Oil and Gas Limited (CLL - TSX;  "Connacher" or the "Company") stated today that it has placed the previously  announced first lien term loan facility in an aggregate principal amount of US  dollar equivalent of C$140 million (the "Term Loan Facility"). The Term Loan  Facility will be placed with a syndicate of institutional investors, bears  interest at LIBOR plus 6% (1% LIBOR floor) and is expected to close and be  funded on or about May 27, 2014, subject to customary closing conditions.  The Company also requested lender consent to amend and restate the existing  senior secured revolving credit facility (the "Credit Facility") to $30  million and extend the maturity date to December 31, 2016.  Connacher will use the net proceeds to repay outstanding borrowings under the  existing Credit Facility, fund the development of its in situ oil sands  properties, pay fees and expenses related to the transaction and for general  corporate purposes.  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.  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  inquiries@connacheroil.com www.connacheroil.com  To view this news release in HTML formatting, please use the following URL:  http://www.newswire.ca/en/releases/archive/May2014/22/c9368.html  CO: Connacher Oil and Gas Limited ST: Alberta NI: OIL  
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