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

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Message: Divest return

They currently make about $14 million in netbacks on these assets. So if they get a decent amount, remember they don't have to sell, it will be good moving forward.

I expect they can buy back $30 million of debt for about $25 million as it is most likely selling at a discount. So if you assume they get $100 million they may be able to buy back about $120 million which would save them $14 million in interest which is the netback, but it lowers their debt which is badly needed. They will also have a gain of about $20 million on the debt purchase.

This is just my thoughts as to what they may need to get to move forward.

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