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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: Production and bbl pricing

Production and bbl pricing

posted on Jan 06, 2009 04:13AM

Just a few thoughts,looks like the Gap between Brent and WTI are narrowing,due in no small part to the Gaza conflict,if numbers are correct the bitumen price increasing takes care of production cuts,so to does the USA greenback ie .15 on the dollar,add to that production costs have been halved,this production cuts means reserves are increased,so too Ng usage is down providing more capitol income??

This short term gain might be due to Gaza conflict but IMHO CLL is undervalued at these prices(+-.80)simple math indicates $1.60++more realistic these days with a $4-8 range being more appropriate,long term with the next pod upping the ante to $10-15.For me Peak Oil will see Connacher attain this level??


Jan 06, 2009 05:00AM
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