Re: POD1 Net Cash Flow sensitivity to WTI Oil price change

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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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M14W49

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Re: POD1 Net Cash Flow sensitivity to WTI Oil price change

in response to

Re: POD1 Net Cash Flow sensitivity to WTI Oil price change

jurek

posted on Jun 11, 2008 06:52PM

Jurek

In my opinion your numbers are low by about a factor of two to three. Since everything else has already been taken into account in the netback percentages that Connacher lists, any increase in the price they get for Bitumen will go straight to the bottom line. The factor you should use for your calculations for sensitivity is the ratio of price for bitumen to sweet crude which probably varies between about .6 to .8.