Re: Take a Deep Breath

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

Reply New Message

Prev Message Back To Forum Threaded View Next Message

jurek

Rank: President [?]

Points: 4183 [?]

Votes: 52 Score: 3.9 [?]

Your Vote:

Please Log In to Vote

Did you know? You can earn activity points by filling your profile with information about yourself (what city you live in, your favorite team, blogs etc.)

Re: Take a Deep Breath

in response to

Take a Deep Breath

spiderman8

posted on Oct 19, 2009 10:04PM

Spide,

Good, positive look into the CLL Q4 hedges.

IMO the New CLL Hedge you are referring to will not generate any additional cash flow for CLL if the price of WTI oil stay bellow $84. The old hedge (April to Dec at $49.5/bbl) will show massive lose which will effect Q3 and Q4 earnings.

In Q2 CLL reported more then $14 million loses related to the hedges. Q3 will be much worse (IMO over $20 millions loses related to derivative) offset to some degree by strength of $CND.

On the other hand stronger $CND is muting the prices of Bitumen in relation to WTI price. MRC Gasoline margins are down to the levels not seen from Dec2008 crush. Very unfortunate situation for the next 3 months.

Today`s good move, IMO was related to sector sentiment. Most Oilsand juniors (UTS, OPC, NPE) were up more then 5%.