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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The following article is in today's Globe and Mail. What is of concern in this article is the statement that I have highlighted by Stephen Schork who stated that he thinks the price of oil has overcorrected at this point and he see's it dropping back to $40.00 in the near term. Keep this in mind in terms of Connacher getting its financing at 90 cents a share last week. They have to get the money while they can and get on with their business. Personally I do not see Algar being restarted until around October or November of 2009 assuming that the economy is favourable. I went back and looked at Connacher's 2008 report and I get the impression that they are very interested in increasing conventional oil and natural gas production to get more higher dollars from this to balance off the lower dollars that they are earning from their bitumen production in the near future.
Somebody on the board asked what experience management has at Connacher. I have posted biographies on senior management on the management link on the left. I got a lot of information from Standard & Poors Corporate Rating on Connacher dated November 26, 2008.
http://www.connacheroil.com/document...
Breaking News from The Globe and Mail
Oil climbs near $68 a barrel
CARLO PIOVANO
Monday, June 01, 2009
LONDON — Oil prices rose close to $68 (U.S.) a barrel Monday, hitting a new high for the year as world stock markets rallied and investors banked on hopes that the global recession is easing.
Benchmark crude for July delivery was up $1.38 to $67.69 a barrel by late morning in Europe in electronic trading on the New York Mercantile Exchange, the highest level since early November. It had traded above $68 earlier in the day.
Oil prices have almost doubled from below $35 a barrel in March as investors have taken heart from signs a severe recession in the U.S. is slowing. Asian and Europen stock markets rose Monday as surveys showed Chinese manufacturing expanded in May and on hopes that an imminent bankruptcy announcement by General Motors Corp. will help the automaker become a leaner and healthier company.
However, global oil demand remains weak and U.S. supplies are near 19-year highs. And higher oil prices could drag on any nascent recovery.
“The market sent a clear message in May, it will ignore any and all bad news. We expect to see a correction” that will take prices back down to $40 a barrel, wrote Stephen Schork in his Schork Report.
“Of course the economy is going to turn around,” Mr. Schork said. “Whether it occurs by the end of the year, beginning of next year or two years from now is anyone's guess. However, we will argue that energy has overshot the current bottoming phase,” he said.
Traders will be watching for a slew of U.S. economic figures coming out this week, including May employment, April personal income and spending numbers and construction spending. Reports on the manufacturing and services sector and pending home sales in April are also due for release this week.
In other Nymex trading, gasoline for June delivery rose 2.87 cents to $1.91 a gallon and heating oil gained 3.17 cents to $1.71 a gallon. Natural gas for June delivery jumped 12.5 cents to $3.96 per 1,000 cubic feet.
In London, Brent prices rose $1.51 to $67.03 a barrel on the ICE Futures exchange.
© The Globe and Mail
Best Wishes; Scott
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