CONNACHER OIL & GAS (T-CLL) $4.48 +0.06
It’s nice to see the boys of Connacher getting out and about these days. It seems their headline speakers are at
many of the oil sands conferences of the day.
Dick Gusella, leader of the pack at Connacher recently spoke at COPIC in Toronto, followed by the RaymondJames
Oil Sands of Canada Conference in New York. Meanwhile today, some of the people that actually
understand oil sands from Connacher, are speaking at
the TD Leverage Financial Conference in Miami. And most importantly, the market is starting to care. At $122
oil, oil sands is suddenly back in vogue again.
It seems like just yesterday, the stock was plunging as
markets around the world were getting battered, despite
oil prices rocketing and despite Connacher’s production
heading upwards. Those were not some of our best
days. We remember hiding under the desk when Connacher
had that dreadful spike down (we now figure we
are a leading market indicator…anytime we are found
hiding under the desk, ask just what it is that has us terrified
now).
When we caught up with Gusella hoping to hear how
soon he thinks approval on their second Pod on the
Great Divide project, he suggests that their time frame
was always mid-year, but all the paperwork has to be
done, the regulators are busy and of course, they want it
done right. He reminds us that the SAGD projects have
never been disallowed, it’s simply that regulators want it
done right.
Gusella adds that they’ve lined up many contracts and
have pre-built some sections when the second Pod gets
the okay, but they still need government approval to proceed.
Meanwhile, we check up on Andy Gustajtis, a longtime fan of Connacher and he reiterates that the stock
has to break through the $4.75 level, but once through
there, he would be disappointed if it isn’t $7.00 by Christmas,
should they receive approvals shortly.
After what we’ve gone through in the last few months,
boy, do we hope he’s right!
