Connacher invites bids on its oil sands assets
Connacher Oil and Gas Ltd (2) (C:CLC)
Shares Issued 28,329,037
Last Close 5/16/2016 $0.14
Thursday May 19 2016 - News Release
An anonymous director reports
CONNACHER OIL AND GAS LIMITED ANNOUNCES THAT ITS OIL SANDS ASSETS ARE FOR SALE PURSUANT TO A SALE AND INVESTMENT SOLICITATION PROCESS
On May 17, 2016, Connacher Oil and Gas Ltd. commenced proceedings and obtained court protection under the Companies' Creditors Arrangement Act (CCAA) pursuant to an initial order granted by the Court of Queen's Bench in Alberta. Ernst & Young Inc. has been appointed monitor of the corporation for the CCAA proceedings.
Pursuant to the initial order, the corporation obtained approval to initiate a sale and investment solicitation process (SISP) to be conducted in conjunction with the CCAA proceedings. The SISP is intended to generate interest in either the business or the assets of the corporation. The initial order provides that the monitor will assist the corporation in conducting the SISP.
Connacher and the monitor are currently seeking parties interested in acquiring or investing in the business or the assets of the corporation.
The assets of Connacher include a 100-per-cent working interest in approximately 87,000 net acres of oil sands leases located southwest of Fort McMurray, Alta., with estimated gross 2P (proven and probable) reserves of 436 million barrels. The company has two SAGD (steam-assisted gravity drainage) facilities at Great Divide -- Pod One and Algar -- that produced approximately 14,500 barrels per day in 2015 (and are currently producing approximately 8,000 barrels per day due to low commodity prices), with the opportunity for medium-term development to increase capacity to 20,000 barrels per day. Connacher has 41 existing SAGD well pairs and 13 infill wells at Algar and Pod One and an approximately 40-year reserve life at 2015 production rates.
Under the SISP, the deadline for delivery of initial non-binding letters of intent is 12 p.m. MT on June 30, 2016.
Interested parties are invited to contact the monitor by phone or e-mail or to go to the monitor's website for further information on the SISP.
We seek Safe Harbor.