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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: Krissy-Debt

Krissy-Debt

posted on Mar 28, 2010 12:54PM

Krissy

I get the debt issues, really I do, they have debt and lots of it. If they receive money based on 2009 WTI pricing then yes they may not make interest pmts. The way I look at it is they are receiving at least $78 on 2500 barrels and Until end of April contract, which is over, they will receive $79 on another 2500 barrels, the rest is at the prevailing market price. Which has been high 70's. This gives them about $30 ish netback. This is the way I look at it, 2010 pricing, if you look at it differently then good for you.

With the collar/hedge that is in place for May to end of year they get at least $75 on that 2500 bbls.

If Algar craps out then I expect SP to sink and maybe CLL entirely, but I think they at least know how to get a plant built on time and get at least 60% of design capacity in production within a few months of it becoming commercial. That is really all they need at todays market WTI prices.

In the area of raising money I give them a big F.

So Krissy, hopefully you understand I understand the debt. I just think they will come out positively.

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