Re: Underperforming
in response to
by
posted on
Jun 25, 2008 12:38PM
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
Interesting take on one year of lost production. Lets say they lose one year of production, which is highly unlikely, there are lots of fab shops in Alberta that have spare production capacity. How much production does it take to pay off $30 million in interest? My guess is 1/2 year. For arguments sake lets say CLL did not get financing ahead of time, and lets say they got approval for Algar today. Any CEO worth his weight would have the capital markets ready to go to get the financing. Having an approval in your hands and couple that with current production even at $80 oil you would not have to pay the premium rate DG did. and the financing would close in weeks. Fab shops would be ready to go and long lead items could be given the green light and paid for from the $30 million in interest that would be saved. Rebel why would do you like the comfort money?