TSX:TECK.A - Post by User
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TimeScapeon Jun 13, 2007 3:42pm
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TCK oil sands production to be 40% of Suncor
TCK oil sands production to be 40% of SuncorInteresting article today indicating that Teck's oil sands production could be 140,000 barrels/day within 10 years - this is 40% of the size of Suncor, which has a $39 billion market cap compared to Teck at only about $19.5 million for the entire company.
TORONTO, June 13 (Reuters) - Teck Cominco Ltd. (TCKb.TO: Quote, Profile , Research) plans to build an oil sands presence that could produce 140,000 barrels of oil equivalent a day within the decade, Teck chief executive Don Lindsay said on Wednesday.
Speaking at a conference in Toronto, Lindsay said recent land lease acquisitions should eventually bear fruit for the company, which is a top zinc and copper producer with an eye on diversifying to other revenue streams.
"We think we can develop an oil sands business that conceptually could give net to Teck Cominco as much as 140,000 barrels (a) day in a 10 year period," he said.
He noted that such production represents about 40 percent of the estimated 2008 output of energy giant Suncor Energy Inc. (SU.TO: Quote, Profile , Research), a C$42 billion ($39 billion) company with a market capitalization more than twice as big as Teck's.
Teck bought a 15 percent interest in the Fort Hills Energy LP in 2005. The rest is owned by Petro-Canada and UTS Energy Corp.
"Since then, when no one was looking, we've picked up other land positions, which we are very very excited about," Lindsay said.
TimeScape