Connacher Oil and Gas
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Connacher Oil earns $5.54-million in Q1 2010 Connacher Oil and Gas Ltd (C:CLL) Shares Issued 427,907,086Last Close 5/10/2010 $1.65Tuesday May 11 2010 - News Release Mr. Richard Gusella reports CONNACHER OIL AND GAS REPORTS FIRST QUARTER 2010 ("Q1 2010") RESULTS; ALGAR COMPLETED, BEING COMMISSIONED, ANTICIPATE MAY 2010 STARTUP; SUCCESSFUL GREAT DIVIDE EXPLORATION DRILLING PROGRAM; CASH FLOW AND EARNINGS SHOW SIGNIFICANT IMPROVEMENT OVER Q1 2009 Connacher Oil and Gas has released its first quarter 2010 financial and operating results. The period was highlighted by the continuing successful construction of Algar, the company's second 10,000 bbl/d SAGD oil sands project on its Great Divide acreage in the Alberta oil sands. The plant is currently being commissioned and is expected to start up in the second half of May 2010. First production is anticipated during August 2010 after the normal 90 day steam circulation phase of the startup procedures. Thereafter rampup will occur through the end of 2010 and into 2011 and new production will materially impact on Connacher's financial and operating results for the balance of this year and into 2011. During the first quarter the company conducted an extensive and successful core hole drilling program on its 100 percent-owned Great Divide and 50 percent-owned Halfway Creek acreage blocks. Results will be incorporated along with the results of conventional drilling programs in a reserve report update to be prepared by GLJ Petroleum Consultants Ltd. ("GLJ") for release in early July 2010. We recently installed the first high temperature electrical submersible pump ("ESP") at one of our wells at Great Divide Pod One. Production levels are increasingly stable at this site and expected to average over 8,500 barrels per day in 2010, supplemented by new production from Algar. Our full year capital budget for 2010, including outlays for Algar, now stands at $247 million. Based on our outlook, it is management's opinion that we have sufficient cash balances, anticipated cash flow from operations and unutilized and available lines of credit to meet all our capital and financial requirements for 2010. As much of our capital program is now complete, our focus turns to the prospect of further expansions at Algar. To this end, we will shortly file our formal application ("EIA") with a view to securing regulatory approval to increase capacity at Algar to 34,000 bbl/d of bitumen, thus increasing our total plant design capacity to 44,000 barrels per day. We anticipate this process will take approximately 18 months, such that our 300 day construction cycle may be initiated as early as late 2011. We anticipate a much lower level of capital outlays for our basic business activities in 2011 as we plan our Algar expansion primarily for 2012, with possible startup in 2013. These results will be the subject of a Conference Call at 9:00 AM MT on May 12, 2010. To listen to or participate in the live conference call please dial either 1-647-427-7450 or 1-888-231-8191. A replay of the event will be available from Wednesday, May 12, 2010 at 12:00 MT until 21:59 MT on Wednesday, May 19, 2010. To listen to the replay please dial either 1-416-849-0833 or Toll Free at 1-800-642-1687 and enter the pass code 72048478. You can also listen to the conference call online, through the following webcast link: http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3057560 Highlights - Algar construction completed ahead of schedule and anticipated to be under budget; commissioning underway and bitumen production anticipated in second half of 2010; - Improved financial results; cash flow significantly higher; earnings reversal; - Hedge positions strengthened; - Successful winter exploration program - reserve and resource estimates being updated. Summary Results ------------------------------------------------------------------------- Three months ended and as at March 31 2010 2009 % Change ------------------------------------------------------------------------- FINANCIAL ( share amounts) ------------------------------------------------------------------------- Revenues $118,411 $61,757 92 ------------------------------------------------------------------------- Cash flow(1) $3,948 $(4,692) 184 ------------------------------------------------------------------------- Per share, basic and diluted(1) ------------------------------------------------------------------------- Net earnings (loss) $5,546 $(46,844) 112 ------------------------------------------------------------------------- Per share, basic and diluted ------------------------------------------------------------------------- Property and equipment expenditures $118,272 $64,255 84 ------------------------------------------------------------------------- Cash on hand $118,382 $96,220 23 ------------------------------------------------------------------------- Working capital $127,186 $120,035 6 ------------------------------------------------------------------------- Long-term debt $851,978 $803,915 6 ------------------------------------------------------------------------- Shareholders' equity $668,722 $428,276 56 ------------------------------------------------------------------------- Total assets $1,707,123 $1,385,674 23 ------------------------------------------------------------------------- OPERATIONAL ------------------------------------------------------------------------- Upstream daily production/sales volumes ------------------------------------------------------------------------- Bitumen (bbl/d) 6,936 6,170 12 ------------------------------------------------------------------------- Crude oil (bbl/d) 937 1,180 (21) ------------------------------------------------------------------------- Natural gas (Mcf/d) 9,662 12,828 (25) ------------------------------------------------------------------------- Equivalent (boe/d)(2) 9,483 9,488 - ------------------------------------------------------------------------- Upstream pricing(3) ------------------------------------------------------------------------- Bitumen ($/bbl) $51.98 $22.45 132 ------------------------------------------------------------------------- Crude oil ($/bbl) $71.08 $39.63 79 ------------------------------------------------------------------------- Natural gas ($/mcf) $4.86 $4.89 (1) ------------------------------------------------------------------------- Barrels of oil equivalent ($/boe)(2) $49.99 $26.13 91 ------------------------------------------------------------------------- Downstream ------------------------------------------------------------------------- Refining throughput crude charged (bbl/d) 9,347 6,867 36 ------------------------------------------------------------------------- Refinery utilization (%) 98% 72% 36 ------------------------------------------------------------------------- Margins (%) (8%) 7% (214) ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) Cash flow and cash flow per share do not have standardized meanings prescribed by Canadian generally accepted accounting principles ("GAAP") and therefore may not be comparable to similar measures used by other companies. Cash flow is calculated before changes in non- cash working capital, pension funding and asset retirement expenditures. The most comparable measure calculated in accordance with GAAP would be cash flow from operating activities. Cash flow is reconciled with cash flow from operating activities on the Consolidated Statement of Cash Flows and in the accompanying Management's Discussion & Analysis ("MD&A"). Commonly used in the oil and gas industry, management uses these non-GAAP measurements for its own performance measures and to provide its shareholders and investors with a measurement of the company's efficiency and its ability to internally fund future growth expenditures. (2) All references to barrels of oil equivalent (boe) are calculated on the basis of 6 Mcf: 1 bbl. This conversion is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Boes may be misleading, particularly if used in isolation. (3) Product pricing is net of transportation costs but before realized and unrealized risk management contracts gains/losses.
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sharky
City
Gent (Belgium)
Rank
President
Activity Points
5193
Rating
Your Rating
Date Joined
10/12/2007
Connacher Oil and Gas
Symbol
CLL
Exchange
TSX
Shares
403,000,000
Industry
Energy & Environment
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