"Oil at $60 a barrel does it for us,"
posted on
Sep 21, 2008 03:28PM
Connacher is a growing exploration, development and production company with a focus on producing bitumen and expanding its in-situ oil sands projects located near Fort McMurray, Alberta
Thanks 2C for the reply. I think now we are on the same page with the OP cost.
About Mr Gusella Email: "I have seen this but most people do not understand relationship between wti and bitumen netbacks which are complicated by transportation, cost of diluent, differentials, g and a, total capital and return, usd versus C$,RoR expected, price of natural gas and on it goes"
Surely he is not talking about shareholders who are frequently reading or post on this board.
Relations between WTI, Dil-Bit, Bitumen, OP cost (fixed and variable), netbacks, Exchange rate, ROC, Royalties(jumping next year from 1% to 8-9%) and so on... are frequently discussed here on this board.
Daily and average weighted Dit-Bit prices and Alberta cash NG prices are widely available.
Our board Estimates numbers were second to none except overly optimistic Q2/2008 numbers.
Day traders Stockhouse board maybe a different story but I can not speak for them.
I challenge anyone who can show the realistic calculation that CLL bitumen production can make 15% profit at WTI $60/bbl. Good bottle of brandy is for grab.($1 USD=$0.95CND)
Good luck ,Jurek