Bitumen prices are still dropping down.

As of February 14, 2011 Dit-Bit was quoted at $47 which converts to $35 per bbl of Bitumen. This will effect the cash flow since Connacher has no Bitumen hedges in place.

At this prices CLL is selling their bitumen below the cost if you include the interest expenses and way below cost if you include the OPX ($30 million operational capital expenditure).

If this is extended for the next couple of months the $50 million dollars from the Battrum sale may evaporate to cover the operational expenses. $50 million from the Battrum sale was added to the working capital and was not used to pay off the debt.

PS: Nice discussion about the Brent & WTI spread. Did it ever occur to you that this spread was created from the Bernt speculations related to the geopolitical situation as oppose to the demand for the Brent OIL? and this spread can disappear by itself when the Brent will dropper down to $80 level.