Connacher Oil & Gas Ltd CLLZF

RE: Q1 analysis - the untold story

[tankingfrank]

Average production for first quarter 2012 of 13,134 barrels of oil equivalent per day, consisting of 12,429 barrels per day of bitumen (13,200 bbl per day for first quarter 2011) and 705-barrel-of-oil-equivalent-per-day conventional production (1,674 boe per day for first quarter 2011), was down slightly from the comparable period in first quarter 2011. Reduction in conventional production was due primarily to the sale of mature natural gas properties. Reduction in bitumen production (decrease of 6 per cent) for the comparable period in 2011 was due primarily to normal and anticipated declines and curtailment of Connacher's capital program in the fourth quarter of 2011. The company is maintaining its previously announced production guidance of 12,600 to 13,900 boe per day for the full year 2012. Connacher has a number of approved projects designed to maintain and increase bitumen production, which will be undertaken as sufficient capital becomes available. These include new drills at Pad 104 and infill wells at Pod 1, two redrills, infill wells, a diluent recovery system, and the implementation of solvent injection (SAGD plus A) on a larger scale at Algar.