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

Free
Message: Alberta Bitumen prices

From this information, is it possible for someone to estimate CLL's cash burn rate?/Bobert

Since nobody wants to take his head from the sand let me take the heat.

As far as I can see on the operational front:

CLL is not burning cash at this Oil and NG prices.

Here are some details to back up above statement.

Conventional Oil production at $40/bbl oil ($14 netback) makes $0.4 million per month.

LUKE NG production at this prices makes $1.2 million per month

POD1 is loosing $1 to $1.5 million per month.

MRC is the biggest unknown. The crack spread improved significantly since disaster in Q3 and Q4. I estimate that MRC margins are 5 to $10 in January. This will contribute $1.5 to $3 million to CLL cash flow.

General and Administration cost (G&A) is 1million per month.

Summarizing: Conventional Oil and Luke production is covering the loses in bitumen production and refining cash flow is offsetting the G&A cost and some emergency expenses.



Share
New Message
Please login to post a reply