Connacher Oil & Gas Ltd CLLZF

RE: What should one us as netbacks at $75 WTI?

[barak]

Well this was posted a week ago on this thread https://www.stockhouse.ca/bullboards/viewmessage.asp?no=15487592&tableid=0 Not sure where he got the data from, but it seems reasonable given that that the Light/Heavy spread last year was about US$22 (Suncor annual report). Keeping in mind that the price of oil averaged *about* US$66/bbl for the 7 month period JUREK refers to. So if you are assuming US$75 oil, then you can $7 or $8 to his numbers. I also think that $15/bbl is a reasonable cost of production given that SAGD is cheaper than mining, and I know the miners can do it for low 20's. So for $75 oil, you are looking at say CDN$46 for the bitumen less $15 for costs, you are looking at around $31. My previous guess of $35 is maybe a bit optimistic, although if the differential is that high, then they will make it up at the refining end of things (smart move by Connacher). No matter how you slice it, 2008 is looking to be very good for CLL.