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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: Update on Bitumen and NG price
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It is bbl not boe.

The hedging contract for 2,500 bbl/d per month at $46.00 US is for WTI oil not the Bitumen which is sold by CLL.

It is very FUZZY how this can effect the POD1 cash flow or corporation cash flow. Possibly they just collect the differential between the WTI spot price and the $46 hedge through August 2009. Obviously this hedge can turn negative.

To many unknown. Maybe someone else will try to resolve this puzzle.



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