CALGARY, May 13, 2015 /CNW/ - Connacher Oil and Gas Limited (CLL - TSX; "Connacher" or the "Company") announces its financial and operating results for the quarter-ended March 31, 2015 ("Q1 2015") (all amounts are in Canadian dollars unless otherwise noted).

As previously announced, the Company closed its recapitalization on May 8, 2015.

At the opening of trading on Thursday, May 14, 2015, the common shares of Connacher will commence trading on a 1-for-800 consolidated basis under the new stock symbol "CLC".

Q1 2015 Highlights

• Revenue, net of royalties decreased 49% to $53.8 million (Q1 2014 - $105.0 million), primarily due to the decline in crude oil prices, partially offset by higher sales volumes
• Production and operating costs decreased 30% to $22.3 million (Q1 2014 - $31.6 million), primarily as a result of lower natural gas costs and reduced fluid handling and disposal costs
• Adjusted EBITDA decreased to a deficit of $18.8 million in Q1 2015 (Q1 2014 - $10.9 million), primarily due to lower revenue, net of royalties, partially offset by lower blending and operating costs
• Net loss increased to $139.9 million (Q1 2014 - net loss of $62.6 million), primarily due to lower revenue, net of royalties; higher foreign exchange losses primarily on the translation of long-term US dollar denominated debt; offset by lower blending and operating costs and risk management contract gains
• Q1 2015 funds flow used was $42.1 million (Q1 2014 - funds flow used of $10.2 million). The decrease in funds flow in Q1 2015 was primarily due to lower revenue, net of royalties and the translation of a strengthened US dollar on interest payments associated with US dollar denominated long-term debt
• Capital expenditures totaled $6.1 million (Q1 2014 - $18.1 million). The reduction in growth capital was due to the continued delay of the completion of the SAGD+® process commercial project implementation at Algar and of the mini-steam expansion project at Pod One and to the deferral of discretionary maintenance capital expenditures
• Connacher closed Q1 2015 with a cash balance of $49.3 million (Q4 2014 - $87.7 million)
• Production increased 12% to 15,078 bbl/d (Q1 2014 - 13,433 bbl/d). Production increases were attributable to the Company's five infill wells at Pod One that were brought on production in Q3 2014
• Subsequent to Q1 2015, the Company closed out its remaining hedging contracts

Q1 2015 Financial and Operating Highlights

About Connacher

Connacher is a Calgary-based in situ oil sands developer, producer, and marketer of bitumen. The Company holds a 100 per cent interest in approximately 440 million barrels of proved and probable bitumen reserves and operates two steam-assisted gravity drainage facilities located on the Company's Great Divide oil sands leases near Fort McMurray, Alberta.