Connacher Oil & Gas Ltd CLLZF

RE: payment /Bitumen price update

[strzelin]

Semiannual $40 million payment on $900 debt is due on Feb1/2013. The next $40 million payment is schedule for Aug1. By then the Line of Credit could be the only option they may have providing that the banks will not call of the credit based on the bridge of the covenants (dramatically drop in  EBITDA) .

Bad luck continue on the Bitumen prices front. December 2012 prices drooped to the lowest level in years ($32/bbl). Based on the CLL`s Total Cost of ~ $52- $54/bbl (including interest and maintenance capex) they were selling the bitumen for ~$20/bbl below their cost.

Q4/2012 and Q1/2013 will see more quarterly loses (January 3 Dil-Bit $277m3). Projected improvement in heave spread in Q2/3 may come to late for CLL. Additional problem in their survivorship game is big Royalties increases for POD1 Bitumen sales (going form very low rates to big Post Pay-Out Rates).

https://beta.fool.com/traderinvestor70/2013/01/03/enbridge-projects-will-cure-these-canadian-oil-pro/20124/?ticker=LEG&source=eogyholnk0000001