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: Break Even

So lets say they reach 17500 bbl/d by this time next year, lets also say the receive, a netback of about $30 (this has been attained and could again with more barrels of production costs spread out a bit more). These numbers would give them about $2 million cash per month, this is after any interest pmts remember. This would accomplish a few things, confidence in CLL and most obvious cash. They could at this time decide that they are in the oilsands business and maybe sell off the MRC, and receive about $100 million. With a cash flow of about $2 million they could easily borrow $250 million. They would then expand only by 12,000 bbl/d and get that part going. Remember they like to do things in small chunks. the other 12000 bbl/d expansion would come later....

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