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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: Re: Underperforming

Jun 25, 2008 07:09AM
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I don't doubt one lost year of production would be huge, I just don't think it would happen. To me if you say you will have production in such and such a time as DG has, and delivered I might add. Then the financing could have waited. My point is IMO the financing is a huge gorilla on our backs right now. Think about it. One year ago, and I will be guessing on the closing prices here, we had about a $4.00'ish SP. Since then we have had 2 very positive reserve updates, we have had Randall NG come on line, we have had 200 extra BBL/d increase of conventional oil, we have had 8000 bbl/d of bitumen come on stream, we have had oil go up maybe 75% and NG double as well. All of these positives have given us about 30 cents more on the SP. Seriously this SP should be around mid $5 now. My target of $6.75 in August would be realistic IF the Algar approval came through, IF we have a good reserve report and IF we have better production numbers from GD. But.....the financing is holding back about $1.00!!

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