Fourth Quarter 2013 Operational Update Connacher Provides Fourth Quarter 2013 Operational Update and Conference Call Details (cnw)
CALGARY, Jan. 15, 2014 /CNW/ - Connacher Oil and Gas Limited (CLL - TSX; "Connacher" or the "Company") provides the following operational update for the fourth quarter 2013 ("Q4 2013"). All production related results disclosed herein are based on field estimates.
Production and Operations
Connacher's Great Divide production for Q4 2013 averaged 11,400 bbl/d. Production was 3% lower than the prior quarter (Q3 2013 11,788 bbl/d). Production in late November and early December was negatively impacted by a temporary reduction in natural gas supply in northern Alberta necessitating a turndown in steam generation, primarily at Algar. Preventative maintenance was advanced and performed during this period and also reduced production.
The four new infill wells at Pod One have been on production for 135 days and averaged 1,120 bbl/day in December. Steam injection on the four new SAGD well pairs at Pad 104 continued through the end of Q4 2013 and into early January. All of the wells are now on production. These wells have contributed to average Great Divide production to date in January of 13,200 bbl/day.
Marketing and Hedging
In Q4 2013, the volume of bitumen moved to customers outside of Alberta averaged approximately 7,426 bbl/d (65% of total bitumen sales) compared to approximately 10,850 bbl/d (92% of total bitumen sales) in Q3 2013. The balance of the bitumen sales were to intra-Alberta markets.
For 2014, the Company has approximately 6,000 bbl/d of production hedged at minimum WTI prices ranging from US$90 to US$96. Connacher has also hedged 2,000 bbl/d of WCS basis differentials for Q2 through Q4 2014 ranging between WTI less US$18.25 to US$22.50 and 2,500 bbl/d of MARS basis differentials for 2014 averaging WTI less US$1.60.
Q4 2013 Conference Call Details
Connacher will host its quarterly conference call on March 20, 2014 at 8AM MDT. 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.