Connacher Oil and Gas Limited (CLL – TSX) achieved significant operational and financial progress during 2006. Connacher made big steps in 2006 on their oil sands properties at Great Divide, Alberta.
The development of the high quality oil sands reservoir at Great Divide’s Pod One project is well advanced. Start up is expected to commence in the summer of 2007. Meanwhile, other pods have been identified for future growth. Connacher also plans to submit an application to regulators (including due consultation with all stakeholders) to proceed with an additional 10,000 bbl/d project (the “Algar Project”) at its Pod Two located east of Pod One at Great Divide. The company’s conventional natural gas production and their oil refinery are supporting their oil sands initiative as planned. Connacher’s investment in Petrolifera Petroleum has performed exceptionally well, with significant growth in market value.
2006 Highlights
• Conventional production more than tripled to 2,725 boe/d
• Revenues expanded approximately 25 times to reach $245 million
• Cash flow from operations before working capital adjustments(1) increased 9 fold to $40 million
• Cash flow per share(1) increased 450 percent, despite a 75 percent increase in weighted average outstanding shares issued to finance growth
• Capital spending including acquisitions reached $452 million
• Almost $600 million of debt and equity financing was completed during the year, assuring control of Great Divide
• Great Divide Pod One 10,000 bbl/d SAGD oil sands development project approved, financed and underway, on time and on budget
• Pod Two development application being finalized – subject to regulatory and final approval by Connacher’s Board of Directors, another 10,000 bbl/d project to follow completion of Pod One
• Proved conventional and bitumen reserves up 30 times over 2005 level
