I previously posted a link referring to a proposed change in accountimg standards regarding the ability of oil companies to carry bituman on their balance sheets as reserves.
Currently, as Don Coxe has pointed out several times, they are unable to show bituman as contributing to their reserves.
As more and more of the worlds oil is unavailable to these companies, they are agressively looking to add to their balance sheets wherever they can.
It is not the cost of production that is holding them up. It is the fact that they must commit acquisition dollars to plays that strengthen their balance sheets.
If the accounting change that I cited is approved by the SEC, look for aggressive acquisition strategies by the major oil companies.
As Connacher has funded a drilling program to certify reserves instead of padding their stock promotion efforts, as others in this sector have, I would expect them to be a prime target.
As a shareholder, I would be disappointed at a buyout that did not contemplate the total oil that is represented at Great Divide.
Since they have only scratched the surface so far, I hope that they are able to achieve some impressive results during the current drilling season.
