Season chicken with salt and pepper.
Spread flour on a plate and roll chicken pieces in flour, shaking off excess.
Tie together herbs for bouquet garni.
Heat oil and butter in a large, heavy-based saucepan.
Add bacon, mushrooms and onion and fry until onions are slightly softened.
Remove from pan and set aside.
Add chicken pieces to heated butter and oil mixture and fry until golden brown.
Sprinkle cognac over and ignite, shaking the saucepan until flames subside.
Add remaining ingredients except cream and allow to simmer covered for 1 hour, stirring occasionally.
Add fried bacon and mushroom mixture and allow to simmer for a further 30 minutes.
Remove bouquet garni and set aside.
Transfer chicken, bacon, mushrooms and onions to a serving platter and boil sauce over high heat for 3 - 4 minutes or until thickened.
Add the cream and mix through.
Simmer for 2 minutes.
Pour sauce over chicken and serve immediately with rice.