Connacher closes equity financing and eliminates debt
Summary
CALGARY, Nov. 29 /CNW/ Connacher Oil and Gas Limited (CLL TSX) announced today that it has completed the first closing of its previously-announced private placement financing. Following final approval of Connachers board, up to $4.5 million is planned to be invested on the continuing evaluation of Pod 1 on the companys landholdings at Great Divide, including drilling of up to 16 additional core holes, a 3D seismic program and various reservoir, environmental and engineering design studies. This program is expected to position Connacher to submit a mid-year 2005 application to the Alberta Energy Utilities Board and other regulatory authorities seeking approval to exploit this accumulation. In a report prepared for Connacher by DeGolyer & MacNaughton Canada Limited (D&M) in accordance with National Instrument 51-101, with an effective date of October 1, 2004, Petroliferas initial proved and probable crude oil and natural gas reserve base, before deducting production since the effective date of the report, was estimated to be 577,000 barrels of crude oil and three billion cubic feet (Bcf) of natural gas. It holds 100 percent interest in 83 sections of oil sands leases at its Great Divide project, situated approximately 50 miles southwest of Fort McMurray, Alberta.