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CLC - Connacher Oil And Gas News Story

C$0.14 0.0  0.0%

Last Trade - 16/05/16

Sector
Energy
Size
Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £111.0m
Position in Universe th / 2698

Oil sands junior producer Connacher files for creditor protection

Mon 16th May, 2016 9:25pm
CALGARY, Alberta, May 16 (Reuters) - Junior oil sands 
producer Connacher Oil and Gas Ltd  CLC.TO  filed for protection 
from creditors at an Alberta court on Monday, making it the 
latest Canadian victim of the two-year slump in global crude 
prices. 
    The Calgary-based company said depressed oil prices and 
difficulties accessing capital markets had prompted directors to 
seek protection under the Companies' Creditors Arrangement Act 
(CCAA). 
    CCAA is an insolvency law in Canada that allows companies to 
restructure their finances and stay in business. 
    Connacher temporarily cut production at its Great Divide oil 
sands project in northern Alberta earlier in the first quarter 
of this year to around 3,000-4,000 barrels per day from 8,000 
bpd in response to tumbling oil prices. 
    The company also briefly shut some production two weeks ago 
as a precaution against a massive wildfire burning around Fort 
McMurray. 
    Connacher said some of its existing lenders had committed to 
providing up to $20 million in interim financing to support 
operations, and obligations will continue to be met as it goes 
through the CCAA process. 
 
 (Reporting by Nia Williams; Editing by Sandra Maler) 
 ((nia.williams@thomsonreuters.com; +1 403 531 1624; Reuters 
Messaging: nia.williams.thomsonreuters.com@reuters.net)) 
 
Keywords: CONNACHER O&G RESTRUCTURING/
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