Connacher Oil & Gas Ltd CLLZF

RE: sec decision

[METACOMET]

My take on the SEC issue is that American oil companies are limited in what they are able to claim as reserves on their balance sheets. Since many American majors are having to show substantial reductions as they exhaust existing reserves, they are in the position of having mountains of cash, but unable to book reserves to strengthen their books. What the change in SEC rules will do is allow companies to classify proven reserves when they are defined as economic. In the past, oil sands assets were marginally economic because of the increased costs to extract them. At the current price of oil, they are absolutely profitable and major companies can and will become strong buyers, when the accounting rule is modified.