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: Re: exchange rate pros and cons??
1
Nov 16, 2009 03:50PM

Dondon, you are very confused poster. Just look at your own post:

"As at September 30, 2009, the WTI crude oil forward price curve exceeded the hedging contract prices, resulting in a current liability and an unrealized mark-to-market ("MTM") non-cash accounting loss of $1.8 million for these contracts. For the year-to-date, the opportunity cost or realized losses on these contracts totalled $14 million. These losses are deducted from reported upstream revenues."

WTI Monetary Hedges (read your own post) cost CLL $14 million US dollars so far. Connacher had to pay $14 million dollars US to contract holders which is effectively decreasing the price of bitumen they sell to local upgrader and getting pay in Canadian Dollars. 2010 contract is already underwater.

Can anybody explain why some people want to believe in what they believe, for the reason that they want to believe?

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Nov 18, 2009 04:50PM
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