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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: Costless Collars

Costless Collars

posted on Aug 16, 2009 01:01AM

Personally, I believe in the peak oil concept, and accordingly, I would assume that oil prices will rise significantly again in the next few years. However, despite that, I would be very happy to put a hedge in on all of our production for a year or two based on WTI $75 equivalencies, JUST IN CASE the recession (which has allegedly just ended) gets a second wind. Which is a very likely scenario in my mind. It would be nice to know we've got a guaranteed price for our production until three or four months past the projected commissioning date for Algar, just for the peace of mind.

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