Slide 6 Summary
posted on
Dec 30, 2008 05:03PM
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
Not to be rude, but I cannot understand how some of you invest in a company without understanding their balance sheets. For those who need a helping hand, here it is.
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Starting cash position: 289 Million
Loan Interest payments (08 and 09) -121 Million
Pod 1 extra well pair: -5 Million
2009 Capex (Note: Algar not incl.) -45 Million
Additional algar costs* -109 Million
*These include deferral costs, transfer lines and COMMITMENTS (meaning they must spend this)
NET: 9 Million
***This means that should we spend the bare minimums on algar (commitments only) we will be left with 9 million dollars and algar about 40% funded at the end of 2009.
As we are later shown:
Algar total cost: 345 Million
spent prior to now: -77 Million
2009 Commitments -73 Million (as shown above)
Balance: 195 Million to complete algar,
We have 9 million left at the end of 2009
So we need 186 million$
So what slide 6 proposes is that the remaining balance ( 195 million - 9 million left over at end 2009 = 186 million needed) will be taken from our credit facilities, which I argued in previous posts
****WILL NOT BE READILY AVAILABLE WHEN CONNACHER NEEDS IT.***
So how are we to complete algar and ensure those 2010 interest payments get paid?
My goal here is to promote intelligent discussion about how CLL is going to make it through the next 24 months. According to this, it does not look promising.
Regards,
Solo