Connacher Oil & Gas Ltd CLLZF

RE: RE: Here in the real world-Radcat

[cartach13]

Deer Creek which was SAGD and just one well set installation was bought out by Total at around $31 as I recall,however that well set had just been started but  never got off the ground as the production fizzled out at around 2500 gpd. Enerplus had a stake in it which carried through Total's buyout. I only learned of what happened after Total's buyout  from reading Enerplus's reports as I was looking at possibly buying into that company. After production could not be increased everything was put on hold and there was mention of abandoning SAGD and going to conventional "mining". I don't know what's been done since.  I also don't know if any of the existing CCL management were involved in Deer Creek but if so they got a good deal for Deer Creek shareholders for something that would have turned out to be a bust and must have learned a lot because CLL has turned out to be a winner on both the first and second tries. I don't know what the oil price was when Total bought out Deer Creek but if it went for $31 for an unproven single installation then as one poster recently worked out CLL could easily go for something in the $20 range. If the oil price gets up to near $100 and considering the other assets, the buyout price could go to near  $30 notwithstanding the high debt. As has been mentioned a higher oil price could be the trigger and as they always spike occasionally it might well pay to be patient.