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

Free
Message: Some forward thinking

I agree with Spiderman8 that when the 24,000 bbl/day expansion project is finished that the most that it will be producing after 2 years of production will be around 18,000 bbl/day at most. Based on Connacher's record so far, it's total real production will be about 30,000 -32,000 bbl/day of bitumen overall instead of the announced theoretical total of 44,000 bbl/day which management keeps alluding to. My point is that if Connacher does not find a partner fo pay 100% of the costs for the expansion then Connacher should put the expansion off for some future date and concentrate solely on growing it's conventional production in order to pay down it's debt and reduce it's existing number of shares over the next couple of years. I am of course assuming that Connacher's conventional assets are worth concentraing 100% of their attention and cash flow on to develop which at this point remains to be seen. The bitumen business has not been very successful for Connacher to date so in my view the expansion should only be undertaken with someone else's money. Under no circumstances should Connacher invest another cent in the expansion to incure more debt.

Cheers; Scott

Share
New Message
Please login to post a reply