Connacher profit rises sixfold

Oilsands, natural gas and refining junior Connacher Oil and Gas Ltd. multiplied its net income by six but halved cash flow and revenue in the second quarter of 2009 compared with the same period in 2008, it reported Wednesday after markets closed.

It noted earnings of $40 million on revenue of $100 million, compared with profit of $6.7 million on revenue of $202 million in the second quarter of 2008.

Cash flow slipped to $9.6 million from $20.5 million, mainly due to lower commodity prices.

In a news release, the company said earnings were buoyed by foreign exchange gains, inter-company sales of diluent to the Great Divide Pod 1 oilsands project and a net margin of $3.5 million at the company's Montana refinery.

Connacher is building its Algar in situ oilsands expansion and recently initiated drilling of its 17 steam-assisted gravity drainage well pairs with two rigs. It said it will spend $175 million on the project this year and $72 million in 2010, bringing the total cost to $375 million.

Bitumen production at Pod 1 averaged 6,300 barrels per day in the second quarter, it reported. The plant's design capacity is 10,000 bpd.