Connacher Oil & Gas Ltd CLLZF

RE: RE: 300% not good enough?

[rehsifylf]

Really - 'cause I thought I read somewhere that ALGAR is producing 7500  bbl/day so that would mean ALGAR cost $112.5M to build.  Hell of deal they got - but I'm pretty sure they quoted the project cost at around $375M in 2008/9 dollars.  But if it only cost $112.5 M, I wonder where the rest of the money went?  By flowing bbl do you mean the number they put on the nameplate or the number that comes out of the ground?  One is pretty easy to produce - only requires and engraver and a sheet of metal, the other is a little harder to produce.

 Also - careful about what you include in minable costs - upgrading is separate and is required for both mining and thermal recovery.  I don't believe I suggested that any Oil Sands production was cheap.

 

I know well what it really cost to build SAGD plants - its what I do.  I also know that in the past year the costs have climbed more than 15%.  The majority of ALGAR was completed at the very lowest construction cost point of the cycle (although  CLL made up for that by borrowing the money at possibly the highest rates I've seen in the past 20 years  11.75%).

 

Don't get me wrong  - I'm not bashing CLL.  Simply saying that they cannot afford to expand.  They need outside capital.  Can't see anyone wanting to partner with the crew that is there.  That leaves one answer.