Oil in the $70./ $80.00 would be Awesome for CLLIt’s all about reducing operating costs and increasing profitability.
Winter 2007
Drilling of the horizontal production wells has proceeded extremely favorably, with no drilling complications. Connacher has been able to drill horizontal production wells to a measured length approaching 650 meters, approximately 150 meters longer than the original prognosis. This was done because the wells continued to penetrate consistently excellent bitumen-saturated reservoir, and accordingly, by extending the reach of the wellbore, more reservoir will be opened up for prospective production and recoveries once production is initiated. The company has also been successful in positioning the horizontal production wellbores in close proximity to the Paleozoic basement, thus minimizing the standoff from basement. This accordingly increases the amount of the reservoir above the production wells which can yield producible bitumen and should therefore increase recoverable reserves. Connacher also anticipates extending the horizontal length of the steam-injection horizontal wells as a consequence of the continuous high-quality reservoir encountered to date in the drilling of the horizontal production wells.
During 2007, a total of 81 core holes have been drilled with positive and in some cases very encouraging results. Several core holes have penetrated reservoir thicknesses up to 30 metres, which is thicker than that encountered at Pod One. In the opinion of Connacher's management, reservoir quality is considered encouraging and similar to that generally encountered in the region.
This winter the company will conduct an active core hole drilling program on its main lease block, over which it now has full 3-D seismic coverage. This has helped the company high grade its core hole program to focus on seismically defined features which appear to be amenable to developing into new accumulations or pods for future development, independently or as satellites to the company's established plants in the longer run. Contrary to popular opinion, despite the fact the company's regions are underlain by oil-bearing sands, there is exploratory risk in identifying accumulations with the requisite characteristics in achieving potential exploitation or "pod" status. The company's 3-D seismic is among the most expensive in the world and not every lead turns into a project. The company anticipates drilling approximately 120 core holes in the winter drilling season of 2008, almost doubling its core hole inventory. The company hopes this will further enhance its already considerable reserves and resources in the region.
Mr. Richard Gusella reports
CONNACHER'S NINE MONTH CASH FLOW GROWS 45 PERCENT IN 2007; GREAT DIVIDE POD ONE PLANT COMMISSIONED, STEAMING AND BITUMEN SALES UNDERWAY; STRONG THIRD QUARTER AND YEAR TO DATE EARNINGS IN 2007
Highlights:
• Pod One plant and facilities completed on time;
• Commissioning completed on Sept. 16, 2007; steaming starts;
• First bitumen from Pod One produced and sold;
• Year-to-date 2007 record cash flow from operations before working capital changes;
• Record earnings;
• Bought-deal flow-through share financing under way;
• Existing debt to be refinanced, new debt capital being raised for Algar (the company's second 10,000 bbl/d oil sands project).
https://www.connacheroil.com/operations/photo_gallery.html
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By Gavin Evans
Nov. 12 (Bloomberg) -- Crude oil fell in New York after Nigeria's oil minister said current high prices can't be justified.
Prices near $100 a barrel are excessive and oil may return to between $80 and $85 a barrel within a month, Odein Ajumogobia said Nov. 10, according to Reuters. Oil reached a record $98.62 a barrel last week as the sliding U.S. dollar attracted investors to commodities and after a report showed U.S. stockpiles fell for a third week.
``There is still some underlying tightness in the oil market,'' said David Moore, commodity strategist at Commonwealth Bank of Australia Ltd. in Sydney. ``It may well go above the $100 mark but we don't expect it will be sustained.''
Crude oil for December delivery fell as much as $1.08, or 1.1 percent, to $95.24 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $95.41 at 7:24 a.m. in Singapore.
The contract rose 86 cents, or 0.9 percent, to $96.32 on Nov. 9 after falling the previous two days. Brent crude oil for December settlement dropped 64 cents, or 0.7 percent, to $92.54 a barrel on the London-based ICE Futures Europe exchange today.
To contact the reporter on this story: Gavin Evans in Wellington at gavinevans@bloomberg.net
https://www.bloomberg.com/apps/news?pid=20601072&sid=aYl1dJTjYUJs&refer=energy