Connacher at risk of default as it misses another loan payment
Connacher Oil & Gas missed another debt payment this week and entered into a forbearance agreement, allowing it to delay payments to the end of April. The company is at serious risk of default if it misses the next loan payment.
Connacher restructured $1 billion worth of debt in 2015, allowing its debt-holders to take an equity stake in the junior oil sands player. The company reported a $56 million loss in the fourth quarter of 2015 earlier this week, an improvement over the previous quarter. Connacher has two SAGD facilities in operation at its Great Divide facility. Fourth quarter production was reported at 13,900 bbl/day. First quarter production is expected to be 5,900 bbl/day. Great Divide has the capacity to produce approximate 15,000 bbl/day but the company has reduced output in order to save operating costs.