I occasionally hear this.

Problem:
“Conversate” is a slang verb that makes the speaker sound dumb.

Explanation:
“Conversate” is a back-formation of the noun “conversation”.

Maybe some people who use “conversate” know that the noun “obligation” and the verb “obligate” go together and therefore believe that “conversation” and “conversate” go together.

I have heard “conversate” or one of its ‘conjugations’ in sentences such as these:

• “Let’s conversate about the ladder that I borrowed from you.”
• “I was conversating with her yesterday about the weather.”
• “I conversated with him about the outrageous telephone bill.”

At least in my experience, it seems as if some of those who say “conversate” are trying to sound more intelligent than those who are listening to them. After all, “conversate” is longer than “converse”, so the former must be a “fancier” word than the latter (or at least that’s their reasoning).

Whatever the reason, “conversate” makes the speaker sound dumb.

Solution:
“Converse” (or — keeping it simple — “Chat”)