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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: SP holdups

SP holdups

posted on Jun 13, 2008 07:31AM

With oil and NG prices at record prices you would think CLL Sp would be somewhat higher. My opinion is that it is held back, not by manipulation but by a conservative investment community. With interest being charged daily on money waiting for Algar approval people will hold back because of the risk of approval delays. Everyday costs interest money, even with preordering equipment. The higher Oil and NG prices will bring higher proven, probable etc reserves simply because they are becoming more economical to extract. If and when Algar gets approved the proven reserves should increase because the risk of non-approval is removed. Once appoved the money set aside for Algar will be put to work and the interest being paid will now actually be worth something, currently I consider the interest, an expense, for safe money, a hole in the dam. Approval before reserve updates, IMO will bring a big value increase to the reserve update when it is announced, therefore increasing the SP quickly and greatly.



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