Oilsands reward Connacher Great Divide project going 'in record time' Shaun Polczer, Calgary Herald Published: Friday, March 21, 2008

 Connacher Oil and Gas on Thursday reported higher financial and operating results while it ramps up the Great Divide oilsands project south of Fort McMurray. Connacher said Great Divide became commercial effective March 1 as it strives to reach 10,000 barrels per day (bpd) from the first phase of development. Bitumen production is currently 5,000 to 6,000 bpd, company officials said Thursday. "We have achieved commerciality at Great Divide pod one in record time," CEO Dick Gusella told analysts. "Our integrated model is working." Gusella said the company is proceeding with regulatory approval for the second 10,000 bpd phase, dubbed Algar, "in a timely manner . . . doing it our way." If approved, Algar will see first oil starting in late 2009. Connacher began commissioning Great Divide last summer and envisions half a dozen similar phases or "pods" eventually capable of producing 50,000 bpd. Meanwhile, the company reported net earnings of $40.96 million, or 22 cents a share, up sharply from $6.95 million, or four cents a share, a year earlier. Revenues jumped 41 per cent to $344.5 million from $244.7 million a year ago. Since 2006 the company has operated a refinery in Great Falls, Mont., that ran at nearly 100 per cent capacity during the year, processing about 9,500 bpd. "The refinery did really well," Gusella added. Thanks to work at Great Divide, Connacher's proved reserves climbed 19 per cent to 60 million barrels while its contingent and prospective resources nearly doubled to 800 million barrels with an estimated value of about $2.6 billion. "We are quickly approaching the rank of an intermediate producer," the company said in a statement. Meanwhile, Gusella said Connacher is well capitalized with sufficient capital resources to fund its growth plans. Despite the positive results, Connacher's shares fell nearly four per cent on the Toronto Stock Exchange on Friday, losing 11 cents to close at $2.99. The stock is off a 52-week high of $4.43. spolczer@theherald.canwest.com