Re: Shorts and Issues

Welcome to the Connacher Oil and Gas Hub on AGORACOM

Connacher is a growing exploration, development and production company with a focus on producing bitumen and expanding its in-situ oil sands projects located near Fort McMurray, Alberta

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jurek

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Re: Shorts and Issues

in response to

Shorts and Issues

marketbiggy

posted on Mar 05, 2008 08:44PM

marketbiggy The royalties are all approved and legislated by the government. They will be in efect starting Jan 2009.

In 2008 CLL will pay 1% rate on total POD1 revenue. In 2009 we will pay 6% rate on gross revenue . Assuming successful 10.000 bbl/d POD1 production of bitumen ($220M annually) cumulative NET revenue ($122M annually) from 2008 to 2010 ,CLL will exceed its cumulative cost of POD1 project and we will jumped in 2010/11 to 35% royalty's rate. Cumulative payout cost is apply project by project.