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Connacher is a growing exploration, development and production company with a focus on producing bitumen and expanding its in-situ oil sands projects located near Fort McMurray, Alberta

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Message: Okay jurek - I'll bite
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Okay jurek - I'll bite

posted on Sep 04, 2009 10:22AM

jurek - you wanted to know where the money went, here's my attempt. I used the Consolidated Statements of Cash Flow for year ends 2008 and 2007 (by default the 2006 is required for this statement). I combined the activity in excel for an easier view. For those not familiar with this statement, cash flow is divided into 3 parts: a) Operating; 2) Financing, and 3) Investing. I colour coded the three sections separately. (I cut and paste this from excel - I hope it retains the proper format - otherwise I can provide in excel and pdf formats).

You'll note that a good portion of the Senior Notes went to retire older debt (previous investments like Luke, etc) as well as provide funding for POD1. Note that I wasn't able (or wasn't willing to invest the time) to decipher the information from Dec 31-08 to June 30-09 (end of 2nd qtr). But below does provide a good trail of CASH from 2006 to the Dec 31-08 year end. The trail leads to our cash position of $223M before the 2009 financing activity to date.

Hope this helps - good luck,

Booster

Connacher Oil and Gas Limited
Consolidated Statements of Cash Flow
Years Ended December 31
Cash provided by (used in) the following activities: 2008 2007 2006
OPERATING
Net earnings (loss) (26,603) 40,961 6,953
Items not involving cash:
Depletion, depreciation and accretion 56,448 31,061 32,949
Stock-based compensation (Note 13) 4,575 6,071 8,293
Financing charges - non-cash portion 8,934 2,168 2,237
Employee future benefits (Note 12a) 730 447 381
Future income tax provision 7,623 27 (3,535)
Unrealized foreign exchange loss 122,342 2,854 4,287
Gain on repurchase of Second Lien Senior Notes (2,769) 0 0
Dilution gain (7,964) (1,917) (23)
Equity interest in Petrolifera earnings (3,085) (6,953) (11,078)
Realized foreign exchange transactions (105,414) (29,754) 0
Lease inducement amortization 0 0 (268)
Cash flow from operations before working capital and other changes 54,817 44,965 40,196
Changes in non-cash working capital (Note 16(b)) (27,583) 6,464 (9,271)
Pension funding (Note 12) 0 (781) 0
Asset retirement expenditures (209) (311) 0
27,025 50,337 30,925
FINANCING
Repayment of oil sands term loan 0 (180,000) 0
Issue of common shares, net of share issue costs 761 50,968 123,188
Increase in bank debt 0 135,856 280,078
Repayment of bank debt 0 (154,963) (57,707)
Issuance of Convertible Debentures, net of issue costs (Note 10) 0 96,010 0
Issuance of Second Lien Senior Notes, net of issue costs (Note 10) 0 575,449 0
Repurchase of Second Lien Senior Notes (6,262) 0 0
Deferred financing costs (77) (3,848) 0
Proceeds on unwinding of cross currency swap 97,600 0 0
92,022 519,472 345,559
INVESTING
Development of upstream and downstream properties (351,320) (301,877) (175,033)
Proceeds on disposal of oil and gas properties 0 0 10,000
Decrease in restricted cash (Note 16(c)) 72,113 59,627 (122,788)
Acquisition of Luke Energy Ltd. (Note 4) 0 0 (92,692)
Acquisition of refining assets (Note 4) 0 0 (61,273)
Acquisition of other assets 0 0 (5,185)
Exercise of Petrolifera warrants 0 (5,143) 0
Change in non-cash working capital (Note 16(b)) 50,789 (8,669) 14,122
(228,418) (256,062) (432,849)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (109,371) 313,747 (56,365)
Impact of foreign exchange on foreign currency denominated cash balances 3,924 (4,240) 457
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 329,110 19,603 75,511
CASH AND CASH EQUIVALENTS, END OF YEAR 223,663 329,110 19,603
Supplementary information - Note 16
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