Legal

This website is owned and operated by Connacher Oil and Gas Limited ("Connacher") and may be changed or updated from time to time without notice. Your use of Connacher's website acknowledges your acceptance and consent to the practices described in this disclaimer and agree to hold Connacher and its affiliates harmless from and against any and all claims, expenses, damages, costs or any loss of any kind arising out of using this website or any material contained in or obtained through this website.

The Material contained in this website is deemed to be provided in Alberta and is subject to Alberta law. All monetary amounts mentioned on this website are in Canadian dollars unless otherwise stated. Website is provided as a service only.

The Material contained in this website is for informational purposes only and does not constitute a solicitation or an offering of securities in any jurisdiction. Material available in or through this website (e.g. annual reports, interim reports, AIFs or press releases) is not intended to modify, qualify, supplement or amend information disclosed under corporate and securities legislation of any jurisdiction applicable to Connacher and should not be used for the purpose of making investment decisions concerning Connacher securities.

Website Protected by Copyright and Trade-mark

All content included on the website (including, without limitation, the design, text, graphics, trade-marks, service marks, logos, slogans and internet domain names as well as any audio or video), and any selection or arrangement thereof (the "Material"), is the exclusive property of Connacher or its licensors and is protected by international copyright, trade-mark, service marks, patents, or other proprietary rights and laws.  All such rights therein are expressly reserved by Connacher.

None of the Material may be downloaded, copied, reproduced, republished, posted, transmitted, stored, sold or distributed without the prior written permission of Connacher.  The Connacher name and logo are trade-marks and copyrights of Connacher.

This Legal Notice does not apply to linked websites. Each website should be checked for the Legal Notice applicable to it. Connacher is not responsible for the terms and conditions of use in place on linked websites that Connacher does not control.

Third Party Websites

Connacher provides links to third party websites for your convenience only. The inclusion of these links does not imply that Connacher monitors, investigates, verifies or endorses these websites, and accordingly, their use is at your own risk.

Internet Software or Computer Viruses

Due to technical difficulties inherent in the Internet, Internet software or transmission problems could produce inaccurate or incomplete copies of material contained on this website when displayed or downloaded onto your computer. Computer viruses or other destructive programs may also be inadvertently downloaded from the website. Connacher recommends that you install appropriate anti-virus or other protective software.

Exclusion of Liability

Although Connacher updates this website with Material it believes to be accurate at the time it is posted, Connacher does not warrant the accuracy, completeness, timeliness or currency of the Material at all times. Connacher expressly disclaims any liability for errors or omissions in the Material contained in this website. All Material and information contained in this website is provided on an as-is and as-available basis. Your use of this website is at your own risk.

In addition, no warranty of any kind, whether implied, expressed or statutory, including but not limited to, warranties as to non-infringement of intellectual- property rights or third-party rights, title, latent defects, uninterrupted service, merchantability, fitness for a particular purpose and freedom from computer viruses is given by Connacher in conjunction with the use of this website, the Material contained in this website or software algorithms. The Material on this website is not intended to provide tax, business, investment or legal advice to any individual or entity. Connacher expressly disclaims liability for errors or omissions in any software algorithms. In no event shall Connacher be liable for any damages (including without limitation direct, indirect, special, moral, incidental or consequential damages), claims, expenses, costs, loss of profits, loss of opportunities or loss of information arising from the use of this website including, but not limited to, the use of or reliance on Material contained in or obtained through this website; any inaccuracy or omission in such Material or failure to keep the Material current; use of any third party websites linked to this website; any internet software or software algorithms used in connection with this website or computer viruses or other destructive programs encountered as a result of using this website; inability to use this website due to, among others, interruption, delay in operation or transmission, defect, computer virus or line or system failure; and any other matter connected with this website, even if Connacher is made aware of the possibility of such claims, expenses, damages, costs or losses.

Internet E-Mail

As the Internet is not a fully secure medium and any communication may be lost, intercepted, corrupted or altered, Connacher is not liable for any damages related to communications (personal, confidential or otherwise) to or from this website. You agree that with respect to any material provided to Connacher through this website, Connacher has no obligation of a ny kind concerning such material; the material is non-confidential and non-proprietary; Connacher shall be free to use, disclose, distribute, copy or reproduce the material to others and shall be free to use any ideas, concepts, know-how or techniques of any kind contained in the material for any purpose whatsoever; and the material is truthful legal and does not violate the rights of others.

Forward-Looking Information

This website contains information that constitutes "forward-looking information" within the meaning of the applicable securities legislation. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated by Connacher. Forward-looking information specifically includes, among others, information regarding:

  • our objectives, goals and strategies;
  • the operation of our facilities, including Pod One and Algar, the refinery and our conventional oil and gas properties and planned optimization activities relating to Great Divide;
  • the development of additional oil sands resources;
  • future expansion of refining capacity and natural gas production;
  • estimates of reserves and resources and future net revenue associated therewith;
  • estimated future netbacks, EBITDA and general operational and financial performance in future periods;
  • expectations regarding oil and gas prices, light/heavy differentials, quality charges for bitumen and foreign exchange rates;
  • estimates of future sales and production of crude oil, bitumen and natural gas and anticipated throughput of the refinery and product mix associated therewith;
  • business plans for drilling, exploration and production;
  • the estimated amounts and timing of capital expenditures and sources of funding in respect thereof;
  • risk mitigation strategies;
  • receipt and maintenance of regulatory approvals associated with the environmental impact assessment;
  • anticipated reductions in carbon footprint of bitumen production;
  • potential changes in capitalization, including new sources of credit and increases in liquidity;
  • anticipated future debt levels, royalty rates and exchange rates; and
  • other expectations, plans, goals, objectives, assumptions or statements about future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimated", "forecasts", or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved).

Information regarding oil and gas reserves and resources contained on or through this website and elsewhere is forward-looking information as it involves the implied assessment, based on certain estimates and assumptions, that the reserves and resources described can be profitably produced in the future. 

With respect to forward looking information contained on or through this website, Connacher has made assumptions regarding, among other things:

  • production rates and production decline rates
  • our ability to recover reserves;
  • our ability to optimize operating costs;
  • future bitumen, natural gas and crude oil prices, heavy oil differentials, refining spreads, interest rates and foreign exchange rates;
  • future royalty and taxation rates;
  • the cost of expanding and maintaining our property holdings;
  • well abandonment costs and salvage values;
  • our ability to obtain qualified staffing and equipment in a timely and cost-efficient manner to meet its demand;
  • the timing for receipt of required regulatory approvals to proceed with future projects;
  • the impact of increasing competition; and
  • our ability to obtain financing on acceptable terms.

Many of the foregoing assumptions are subject to change and are beyond the Connacher's control. Additionally, estimates of future net revenue associated with our reserves and resources are based on price forecasts prepared by GLJ Petroleum Consultants Ltd. ("GLJ") as of the date of its report, with an effective date of June 30, 2010.

Some of the risks that could affect our  future results and could cause results to differ materially from those expressed in the forward-looking information include, but are not limited to:

  • the risks of the oil and gas industry (for example, operational risks in exploring for, developing and producing bitumen, crude oil and natural gas; changes in global supply and demand for crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; the uncertainty of reserve and resource estimates and reserves life; the uncertainty of estimates and projections relating to production, costs and expenses; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; and health, safety and environmental risks);
  • risks associated with the operation of a refinery; 
  • uncertainties as to the availability and cost of financing; 
  • fluctuations in general economic conditions; 
  • fluctuations in oil and gas prices and foreign currency exchange rates; and 
  • the possibility that government policies may change or governmental approvals may be delayed or withheld.

We caution that the foregoing list of risks and uncertainties is not exhaustive. Additional information on these and other factors which could affect our operations or financial results are included in Connacher's Annual Report under the headings "Management's Discussion and Analysis", "Business Risks", "Liquidity and Capital Resources", and "Outlook" and in Connacher's Annual Information Form under the heading "Forward Looking Information' and "Risk Factors". You can access the Annual Report and Annual Information Form from this website. In addition, information is available in Connacher's other reports on file with Canadian securities regulatory authorities.

Forward-looking statements are based on the estimates and opinions of Connacher's management at the time the statements are made. Connacher assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change unless required by law.

Non-GAAP Financial Measure

Included on this website are references to financial measures commonly used in the oil and gas industry such as netbacks, EBITDA, cash flow and cash flow per share. These financial measures are not defined by generally accepted accounting principles in Canada. Consequently these are referred to as non-GAAP measures. 

Netbacks are calculated by dividing related revenue less costs by the total production produced. Netbacks are used by management as a performance measure and provide shareholders and investors with a measurement of Connacher's efficiency and ability to fund future growth through capital expenditures. The most comparable Canadian GAAP measure is net earnings and actual 2011 netbacks will be reconciled to net earnings during the applicable quarterly period in 2011. Future netbacks are calculated on an annualized basis and may not reflect actual quarterly netbacks. Volatility in quarterly netbacks will occur due to, among other things, seasonality factors affecting our operations. 

EBITDA refers to net earnings (loss) before current income tax provision, future income tax provision (recovery), depletion, depreciation, accretion, foreign exchange gains and losses, financing charges, stock-based compensation, dilution gains and Connacher's share of earnings (losses) in Petrolifera Petroleum Limited based on its equity interest ownership. EBITDA is used by management as a performance measure and provide shareholders and investors with a measurement of the Connacher's efficiency and ability to fund future growth through capital expenditures. The most comparable Canadian GAAP measure is net earnings and actual 2011 EBITDA will be reconciled to net earnings during the applicable quarterly period in 2011. Future EBITDA is calculated on an annualized basis and may not reflect actual quarterly EBITDA. Volatility in quarterly EBITDA will occur due to, among other things, seasonality factors affecting our operations. 

Cash flow, as commonly used, appears as a separate caption on the Company's cash flow statement and is reconciled to both net income and cash flow from operations. Cash flow is used by the Company to assess operating results between years and between peer companies with different accounting policies. Our reported amounts may not be comparable to similarly titled measures reported by other companies. Cash flow should not be considered an alternative to, or more meaningful than, cash provided by operating, investing and financing activities or net income as determined in accordance with Canadian GAAP as an indicator of the Company's performance or liquidity.

Other Oil and Gas Information

Throughout this website, the calculation of barrels of oil equivalent (boe) is calculated at a conversion rate of six thousand cubic feet (mcf) of natural gas for one barrel of oil and is based on an energy equivalence conversion method. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Estimated values of future net revenue do not represent fair market value.

The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties given the effects of aggregation.  Connacher's most current annual information form contains details of reserves and future net revenues for all of its properties.

Contingent resources throughout  this website were assigned in regions with lower core-hole drilling density than the reserve regions and are outside Connacher's current areas of application for development. These resource estimates are not classified as reserves at this time, pending further reservoir delineation, project application, facility and reservoir design work. Contingent resources entail additional commercial risk than reserves.  Adjustments for commercial risks were not incorporated in the estimates of contingent resources disclosed throughout this website.  A range of Contingent Resource estimates (Low, Best and High) were prepared to reflect a range of technical uncertainty.  Low Estimate Contingent Resources were assigned to mapped regions of oil-in-place with at least 12 m of continuous bitumen pay along with a conservative estimate of recovery factor. The Low Estimate was also restricted to the Algar Project.  Best Estimate Contingent Resources were assigned to mapped regions of oil-in-place of identified pods outside areas of application for development with at least 10 m of continuous bitumen pay along with a best estimate of recovery factor. High Estimate Contingent Resources were assigned to mapped regions of oil-in-place of identified pods outside areas of application for development with at least 9 m of continuous bitumen pay along with a more optimistic estimate of recovery factor. 

Prospective resources disclosed throughout this website were attributable to undiscovered pods in unexplored regions, utilizing average parameters from the pods discovered to date and the statistical success within the explored regions of the leases. Prospective resources entail additional commercial and exploration risks than reserves and contingent resources.  A range of prospective resources estimates were prepared to reflect a range of technical uncertainty. Best and High estimates of prospective resources were assigned using net pay thresholds of 10 m and 9 m, respectively.  No Low Estimate prospective resources were assigned, given the risk of not encountering an undiscovered pod of sufficient size to be considered commercial. Adjustments for commercial risks were not incorporated in the estimates of prospective resources disclosed throughout  this website.