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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: Alberta Bitumen prices
4
Jan 18, 2009 12:19PM

Jan 18, 2009 03:44PM

From this information, is it possible for someone to estimate CLL's cash burn rate?/Bobert

Since nobody wants to take his head from the sand let me take the heat.

As far as I can see on the operational front:

CLL is not burning cash at this Oil and NG prices.

Here are some details to back up above statement.

Conventional Oil production at $40/bbl oil ($14 netback) makes $0.4 million per month.

LUKE NG production at this prices makes $1.2 million per month

POD1 is loosing $1 to $1.5 million per month.

MRC is the biggest unknown. The crack spread improved significantly since disaster in Q3 and Q4. I estimate that MRC margins are 5 to $10 in January. This will contribute $1.5 to $3 million to CLL cash flow.

General and Administration cost (G&A) is 1million per month.

Summarizing: Conventional Oil and Luke production is covering the loses in bitumen production and refining cash flow is offsetting the G&A cost and some emergency expenses.




Jan 19, 2009 07:26AM
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Jan 19, 2009 08:19AM

Jan 19, 2009 09:29AM

Jan 19, 2009 12:58PM

Jan 23, 2009 08:58AM
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