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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: Re: Operational Costs

May 25, 2011 06:06PM

May 25, 2011 06:52PM
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May 27, 2011 12:09PM

May 27, 2011 01:16PM

Thanks Jurek

I knew you would come thru. FYI I do not include diluent, transportation or royalties in operational costs.

Correct me if I'm wrong here. as an example if nat gas component was $7,500,000 and they produced 1,175,300 barrels, costs would be as you say $6.38 per barrel. Now lets say they all of a sudden start producing 1,500,000. I would think the nat gas would still be $7,500,000 (assuming price per gig still the same). Is this not correct?

The other big expense item is G&A going from $6M to $10M. G&A up by 40% is really out of whack.

Production has always been a problem and pricing has not been great.

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