CLL sesitivity to Oil price

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jurek

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CLL sesitivity to Oil price

posted on Oct 07, 2011 02:23AM

Just to answer the credibility question...

Look at the table below.. CLL needs $100/bbl Oil to brake-even with the per-payout Royalties. When CLL starts to pay regular (30%) Royalties they will need $120 WTI oil to survive. This is in line with my suggestions in previous posts.

What is the point of this? Well.. if you want to make money by trading CLL shares you are OK but you want to buy and hold CLL shares because (as rebel suggests) CLL is a good investment with the management on your side.. you better look at this table.

In addition to CLL negative earnings from the operations CIBC report shows CLL Risked NAVPS at $0.54 (at WTI $80/bbl) and negative free cash flow for years to come.

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