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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: Re: BBQDAYS
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Oct 02, 2008 02:48AM

Re: BBQDAYS

in response to by
posted on Oct 02, 2008 04:45AM

Hi Jurek



Well you can count me too on the persons who likes you.(lol)

I must say trough your view on CLL I learned a lot even some can't admit the facts.

I agree that for a double we need indeed to wait until we have the 20.000 bpd0.

But after that achievement IMO sp could get some boost because the further pod's they have in mind are related with the Great divide and Algar .So operation cost will not rise the same way if they should built more plants on their own. If I understood if quite well for achieving 50.000 bpd they would use the existing plants the so called "satellite plants"

So therefore I think that operation cost would be lower because I assume that operation cost will not go up in line with the output so therefore a better return. Correct me if I'm wrong.

The hedging model specially Luke I also think it would be better if they sold that part. About MRC I doubt. Suppose they do the upgrade can we assume again they would make more earnings.

Once again because operational cost will increase but compared to the much higher output it will be lower so will be good for more earnings? Right??



So therefore I had another view n sponge we have the 2 pod's running full speed the extra related pod's could be built much faster and cost price will be lower including operational cost versus output.Cashflow will go up more rapidly .That's the reason I think sp will rise faster .Also valuation will be much appreciated by big houses. with higher daily volumes then we have now.






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