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: Re: Is $1/sh offer possible?

Dec 18, 2011 07:27PM

Dec 19, 2011 08:13AM

Dec 19, 2011 09:57AM
1
Dec 19, 2011 11:01AM
1
Dec 19, 2011 11:42AM

Dec 19, 2011 12:08PM

Dec 20, 2011 01:19AM
1
Dec 20, 2011 09:44AM

Dec 20, 2011 12:39PM

Hi Sharky,

Thanks for the reply and very good post.

In regards to declining bitumen production.

POD1 was place on steam in Q4 2007 and ramp-up to over 8000 bbl/d in December 2008 (slide 13 Dec 2008 presentation - actually this is very interesting and nostalgic material).

After 4 years of production at POD1 we have more wells, ESP pumps and most of the POD 1 cash flow invested back to Production Sustainability Expenditure.

The net result is ~6300 bbl/d production in Nov 2011(slide 13 Nov 2011 presentation). This is 20% drop despite over $100 million sustainability CAPEX which add dramatically to Total cost per barrel (not included in reported operational cost).

If you add Algar we have the operation run with 67% productivity reflected on the total cost. Personally I think this is all related to CLL oil reservoir . It seems that management is trying all what is available in technology field and hard cash with no much respond from the ground.

There is a good chart for SAGD+ which show that you have to have 90% solvent recovery to get your return on investment. Hopefully this can be achieve by Connacher, otherwise SAGD+ could be a costly exercise.


Dec 21, 2011 09:48AM
Share
New Message
Please login to post a reply