Connacher Oil & Gas Ltd CLLZF

Closer than we think

[rehsifylf]

Connacher has done some pretty good things over the past quarter.  I've been involved in some ofthe projects and they have made some really smart moves.  I attribute these to Merle on the operational side and Boland on the financial.

For example - the Diluent Recovery project was probably $60M and when they say they cancelled it because they found another way to reduce diluent, they are being honest.  For a company in CLLs position to be able to reduce capital spend by $60M is huge.  Also - they are impementing a number of smaller projects aimed at reducing OPEX - not home runs, but lots of singles - and that is really smart.  Points to a company that is thinking long term and not making panic moves.

Q4 is gonna be pretty poor from a results basis due to the lower oil prices, but production increases are gonna be pretty solid.  And as mentioned, CAPEX was down in Q4.

By the way - operational updates come out about 15 days after quarter end, so that would be next week, not end of February.  Infill wells will boost production for Q4 and the new Pad 104 wells should be on-line before the announcement or very shortly after.

At this point, can't see why someone would not step in to buy this.  I've accumulated significantly since my post in November.