CALGARY, Nov. 28, 2011 /CNW/ - Connacher Oil and Gas Limited (CLL - TSX) announced today that it has increased its cash balances to $120.3 million as of the close of business on Friday, November 25, 2011, principally as a result of the successful sale of its Latornell properties and its shares of Gran Tierra Energy Inc.

"With our increased cash balances and liquidity-raising initiatives, we remain confident that we will meet all of our 2012 financial obligations, including the repayment of $100 million in convertible debentures due in June 2012," said Richard A. Gusella, Chairman and Chief Executive Officer. "Without diluting our existing shareholders we can reduce debt, deal with any adversities that might arise from weak general economic conditions and properly maintain our valuable oil sands, conventional and refining assets."

"Connacher also continues to advance two other liquidity-raising initiatives, a joint venture or sell-down of our Great Divide oil sands project in Alberta and a farm-out or sell-down of our conventional crude oil and natural gas properties at Twining and Penhold, Alberta," added Mr. Gusella. "On conclusion, which we anticipate will now occur next year, these initiatives could result in further debt reduction and an acceleration of growth activities on our assets."

Cash Balance Update

The latest cash balance represents an increase of $38.6 million, or 47 percent, compared with the company's cash balances of $81.7 million at September 30, 2011. The increase in overall cash balances also includes a contribution from our operations since September 30, 2011. The contribution is partially attributable to stronger crude oil and bitumen prices so far in the fourth quarter of 2011, compared to the most recent quarter.

Latornell and GTE Update

Connacher's Latornell properties were largely undeveloped lands situated in the Deep Basin of northwestern Alberta. Sayer Securities assisted Connacher in the transactions, which were conducted by way of an auction process.

Connacher sold its entire shareholding in TSX-listed Gran Tierra in a series of market transactions. These shares were received by Connacher in early 2011 when Petrolifera Petroleum Limited was sold to Gran Tierra.

http://www.theglobeandmail.com/globe-investor/news-sources/?date=+20111128&archive=cnw&slug=C9668

Cheers; Scott