CALGARY, Feb. 21, 2012 /CNW/ - Connacher Oil and Gas Limited (CLL - TSX) announced certain additions to its executive team and Board of Directors. Peter D. Sametz, formerly President and Chief Operating Officer of Connacher, has been appointed Interim Chief Executive Officer of Connacher effective immediately and Gregory A. Boland has been appointed to the Board of Directors of Connacher, filling one of the vacancies created early this year. Mr. Boland will also serve on the Audit Committee with D. Hugh Bessell, Chair, and W.C. (Mike) Seth. Mr. Boland is the President, CEO and Co-Chief Investment Officer of West Face Capital Inc., an 11.7% shareholder of Connacher.

Connacher also announced today that as of December 31, 2011 its estimated proved and probable ("2P") bitumen and conventional crude oil and natural gas reserves, as evaluated by GLJ Petroleum Consultants Ltd. ("GLJ"), independent qualified reserves evaluators, totaled approximately 504 million barrels of oil equivalent ("boe"). Despite a very modest capital program during 2011, bitumen reserve volumes held virtually constant in all reserve categories, with the exception of proved producing bitumen, of which approximately 4.9 million barrels were produced during the year. The ten percent present value ("10% PV") of 2P reserves decreased to $2.5 billion, due primarily to increased estimated future capital costs, adjusted near-term production forecasts and the re-configuration of the Great Divide Expansion Project to two 12,000 barrels of oil per day ("bopd") plants coming into service in 2014 and 2016 compared to one 24,000 bopd plant previously estimated to be in service in 2013. Contingent and prospective bitumen resources also declined, mainly as a result of the sale of the Company's Halfway Creek property. The Company expects formal Alberta Government approval for the Great Divide Expansion Project in the near future.

Detailed information included in the GLJ December 31, 2011 report ("Year-End 2011 Report") regarding Connacher's reserves and resources and associated present values is set forth in the tables below, including a comparison of year-end 2011 results to year-end 2010 results.

The Year-End 2011 Report was prepared using assumptions and methodology guidelines outlined in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and in accordance with National Instrument 51-101 ("NI 51-101"). Comparisons provided herein with respect to Connacher's conventional and bitumen reserves, bitumen resources and for 10% PV for December 31, 2011 are to estimates contained in the report, prepared by GLJ, with an effective date of December 31, 2010 ("Year-End 2010 Report").

Connacher owns a 100 percent working interest in approximately 87,000 net acres of oil sands leases, primarily located at its Great Divide project in northeastern Alberta, situated 80 kilometers southwest of Fort McMurray. Numerous oil accumulations in the McMurray formation have been identified for continuing and future development on Connacher's properties.

Connacher's first steam-assisted gravity drainage ("SAGD") project at Great Divide, Pod One, has been producing bitumen since late 2007, with commercial production commencing March 1, 2008. Algar commenced producing bitumen in August 2010 and commerciality was achieved October 1, 2010. Production from both projects since start up through December 31, 2011 has totaled approximately 12.6 million barrels of bitumen, of which 4.9 million barrels were produced in 2011. Such amounts have been deducted from earlier estimates of proved reserves prior to the calculation of reserves as at December 31, 2011. Connacher's conventional reserve base declined, due primarily to the sale of several mature conventional properties, totaling approximately 8.2 million boe. Subsequent to the Year-End 2010 Report, Connacher sold its Battrum oil properties, its Marten Creek and Latornell conventional gas properties and its 50% interest in the Halfway Creek oil sands property.

In this press release, unless otherwise stated, reserves refer to reserves of either bitumen or conventional crude oil, natural gas or natural gas liquids or barrels of oil equivalent. Resources refers to bitumen resources. Future net revenue is calculated after the deduction of forecast royalties, operating expenses, estimated future capital expenditures and well abandonment costs, but before corporate overhead or other indirect costs, including interest and income taxes, from forecast revenue. The 10 percent pre-tax present value of future net revenue is also referred to as "present value" or "PV". Certain amounts cited herein have been rounded for presentation purposes. Outstanding financial hedges were not included in the evaluation.

All references to barrel of oil equivalent ("boe") are calculated on the basis of 6 Mcf:1 bbl. Readers are cautioned that the conversion used in calculating barrels of oil equivalent is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Additionally, given the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion ratio of 6:1 may be misleading as an indication of value. Boe may be misleading, particularly if used in isolation. Future net revenues disclosed herein do not represent fair market value. Also, estimations of reserves, resources and future net revenue discussed in this press release constitute forward looking information. See "Forward Looking Information and Reserves Advisory" below.

The GLJ Year-End 2011 Report was prepared utilizing the GLJ January 1, 2012 price forecast, effective December 31, 2011. Readers are referred to the notes to the Summary Tables included in this press release for details regarding the price forecast used by GLJ. Earlier reports were prepared using the price forecasts then being applied by GLJ.

http://www.theglobeandmail.com/globe-investor/news-sources/?date=+20120221&archive=cnw&slug=C6026

Cheers; Scott