Connacher Oil & Gas Ltd CLLZF

RE: Bigger picture

[strzelin]

.....One would have to be a mental midget to believe that the large holdersof this company are going to allow incompetent management to reign ifthey thought a change would boost the SP.....

Your thinking would make sense except  that most larger shareholders sold their CLL shares and moved on.
CLL institutional holdings dropped in half in last few months.

RJ Canadian focus portfolio (FTC551) which had a CLL as a top holding, dumped CLL shares in September. Even  oilsand sector funds like Enervest Oilsand Total Return (EOS.UN) do not hold CLL shares anymore.
Do you think that  a  mental midget know something that the industry insiders do not know?

Everybody on the street knows that since last winter CLL management is actively searching for the equity injection (partnership or takeover). At today bitumen prices of $36bbl (298 kg/m3 of Dil-Bit) CLL need 16,000 bbl/d production to brake even (including the interest expenses).

This is very high cost and the lowest priced petroleum product. Their cash flow will drop significantly again when their Royalty Rate will go from the 1% to 30% in post payout period.

As per CLL management ERCB Expansion Application  they will need $600 million dollars (24,000bbl X $25,000) to add additional 24,000 bbl/d. It looks like shareholders will have to take a deep breath and swallow the bill. ($600 million= 500 million extra shares).
Who is going to take a risk for such a massive dilution? Will it be institutional investor or as you call mental midget?