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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Message: Whats happening

below is from Jurek's post at 09:19pm as the 2nd and 3rd paragraph refer to what Jurek maintains were "manipulation in claims that were made in pointing out that production was cut 50% when bbl dropped into the $30's,the last paragraph is where Mr Guisila says that startup for the 2nd pod will have to wait until oil stabilizes around $55/bbl.

FWIW I dont mind answering to disparaging remaks as it gives opportunity to refute what I consider "bashing" and mannipulation,hope no one is taken in by these statements??





On Dec. 15, Connacher announced that it would stop injecting steam at Great Divide Pod One to avoid bleeding cash. Light crude prices had hit drastic lows. Worse, big upgraders didn't want additional bitumen, so the price spread between light and heavy crudes widened to a crippling $22/bbl. Fortunately, Connacher renegotiated with its suppliers (notably its truckers), and the company found an upgrader willing to buy forward at an attractive fixed differential (in part thanks to higher forward prices for crude in general).

Great Divide's output reached nearly 10,000 barrels per day (bbl/d), then plunged to 5,000 bbl/d after steaming was curtailed, and has now climbed back to 7,500. The company expects to achieve full production of 10,000 bbl shortly unless market conditions again deteriorate. Over the past year, its operating costs have dropped dramatically, to the $16-$20/bbl range, and are expected to decrease further as production continues to increase.

"Raw bitumen is hit with diluent and chemicals before it gets processed, to help knock out the water. Through trial and error, our team has come up with the optimum chemical cocktail-every SAGD project requires a unique mix," Gusella says. To boost production, Connacher has drilled a couple of new wells offsetting its best producing pair (1,200 bbl/d, with a steam to oil ratio of two to one) at Pod One. However, the company will not proceed with constructing a second pod until light oil prices stabilize above US$55/bbl and the light-heavy differential is attractive."

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