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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: 3rd quarter and moving forward

Good work Spide.

First the good news. Nov5 bitumen price moved to $50bbl (highest this year).

If CLL bitumen production will exit 2010 at 14,000 to 15,000 bbl/d they will not be selling bitumen below the cost anymore (cost including interest expenses but excluding 25% future post-payout royalties).

Regards your numbers, IMO bitumen netbaks will be closer to $10 millions then $20 millions.

Q4 for October will have Algar production included, so despite depressed October Bitumen price it should show much better numbers then Q3 months.

As always a small reminder that the netbacks are not a free cash available for CLL future expansion. Netbacks do not include the interest expenses and operational capital expenditures( like new pumps, bottle-neck improvements etc....).

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Nov 10, 2010 10:53PM
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