Selling Halfway Creek / what to expect?

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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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jurek

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Selling Halfway Creek / what to expect?

in response to

Process to Sell Halfway Creek

Shi Ming Sen

posted on Jun 28, 2011 09:56PM

Connacher Oil and Gas and Alberta Oil Sands are selling oil sands leases located at Halfway Creek (50 percent hold by Connacher).

Thanks to Connacher seismic and drilling programs in last two winters (including winter 2010 10 core hole Capex) Halfway Creek leases have been assigned 154.5 million barrels of best estimate contingent resources.

So, how much this leases can be sold for if CLL/AOS can attract some buyers for this property?

Last year (Oct 2010) Enerplus sold Kirby Oil Sand Lease for $405 million or 80 cents per barrel of best estimate contingent resources (497 million barrels of bitumen).

If you apply the same metrics to the 154.5 million barrels of Halfway Creek, Connacher share in this deal could be worth about $60 million.

$60 million could help to buy back $100 million convertible debenture due in June 2012.

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