Connacher Oil & Gas lives to fight another day

Connacher Oil & Gas lives to fight another day

Bankrupt oil sands producer Connacher Oil & Gas was granted another stay of its creditor protection by an Alberta court, this time to June 29, 2018.

Connacher owns and operates the 15,000 bbl/day Great Divide SAGD facility, which is still running normally despite the company's financial distress.

The courts have allowed the company to grant a bitumen royalty to Burgess Energy Holdings in its oil sands rights in exchange for cash, which will be used to repay its US$16.5 million interim revolving credit facility. Royalties will be calculated on a sliding scale, based on the net realized bitumen price, excluding cost of diluent, transportation and storage.

Burgess has a similar royalty agreement in place with Athabasca Oil Corp, owner of the Hangingstone SAGD facility.

 

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