Connacher Oil and Gas (TSX: CLL; 3.73)
Rating:
Risk Qualifier:
Price Target:
Outperform
Speculative Risk
5.00
A Junior with Integrated Oil Sands Growth
• In our view, Connacher shares should outperform their peer group during the next year for the following reasons:
• • An active exploration program that is not reflected in the current share price;
• Experienced management, which has done an impressive job of moving from lease acquisition to first production in under four years, while creating an
integrated business to mitigate risks;
• No reliance on partners for the timing and scope of projects due to 100% working interest in oil sands and refining assets;.
• No additional funding required for 2008 capital budget or the Algar oil sands project expected to be completed in 2009; and,
• A very attractive valuation, which, in our opinion, does not reflect the company's significant resources beyond Pod Two (Algar)
