"Oil at $60 a barrel does it for us," /bbq/CSI/CK

Welcome to the Connacher Oil and Gas Hub on AGORACOM

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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jurek

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"Oil at $60 a barrel does it for us," /bbq/CSI/CK

in response to

Re: Quote from Richard Gusella, "Oil at $60 a barrel does it for us,"

bbqdays

posted on Sep 20, 2008 07:27PM

bbq/CSI/CK

I would strongly suggest that you pay attention to what is printed in the CLL financial reports as oppose to some articles in the news paper.

Remember that the financial reports are legal documents. Articles in the paper or presentations are not.

At WTI $60/bbl the CLL Bitumen would sell at $30/bbl. This would pay only for operating cost and Royalties. CLL was selling Bitumen for $60/bbl when WTI was at $120/bbl (see Q2 financial report).

After paying the financial charges and other cost CLL needs WTI at $100+ to report some net earnings (profit) from the bitumen production. Do not confuse this with the cash flow.

Good luck, Jurek.

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