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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Message: Results look pretty positive. No Movement on the TSX

There was lots of mention of Algar. From very 'quick' scan of the NR I located the following. No mention from management of any problems with approval. See below:

page 2-We applied to regulators, including the Alberta Energy Resources Conservation Board (“ERCB”), Alberta Environment (“AE”) and Alberta Sustainable Resources and Development (“ASRD”) for permission to proceed with the construction of our second 10,000 bbl/d oil sands plant at Great Divide Pod Two (“Algar” or “Algar project”).

page 5/6-We are pleased to report that we are presently producing more natural gas than we consume, so we are ahead of the curve in terms of our future needs at Algar.

page 6-Based on our successful first quarter 2007 core hole program at Great Divide, we were able to confirm our decision to submit an application for our second 10,000 bbl/d oil sands plant at Algar, anticipated to be located approximately eight kilometers east of Pod One. This was submitted to regulators, including ERCB, AE, and ASRD in mid-2007. Based on prior experience, we anticipate a decision on our application will be forthcoming by mid-year 2008. We have alreadypreordered certain key long lead items in anticipation of approval and to ensure we can remain on our preferred timeline for completion in 2009. We estimate the cost of this second plant, which incorporates some scope changes, increased outlays for infrastructure, including access roads and utilities and a higher level of contingencies excluding sunk costs and capitalizations, will approximate $326 million.

page6-The considerable cash balance from our Notes issue was added to working capital, primarily to complete Algar.

page8-We continue to believe our integrated strategy and our operating platform of repeatability, sustainability and expandability make sense in the present environment. We believe our approach to prefunding our financial requirements for major projects such as Pod One and Algar is prudent, especially in light of the recent severe deterioration in credit conditions. Upon receipt of regulatory approval, Connacher, in proceeding with Algar, will continue to adopt a modular approach for control of its construction costs, using our Pod One facility and its successful startup as a template. This should enable us to anticipate production of up to 20,000 bbl/d of bitumen in a short period of time, supplemented by growing conventional volumes. These are aimed at maintaining adequate natural gas supplies for self-sufficiency relative to our fuel needs at Great Divide. We now produce more natural gas than our requirements at Pod One.

page 25-The company’s second project, Algar, is expected to commence a 10-month period of construction in the second half of 2008, upon prior receipt of the necessary governmental regulatory approvals. As most of the features of Algar will be similar to Pod One, Algar’s construction timetable is generally expected to be similar to that of Pod One and, therefore, production from Algar is anticipated to commence in late 2009 or early 2010 and ramp up to add an additional 10,000 bbl/d to Connacher’s growing production base. The cost of Algar is budgeted at $326 million with contingencies, scope changes and for increased costs for related infrastructure.

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