WCS has exceeded C$65 per barrel and will remain above C$65 per barrel in the second half of 2018 thanks to today's great news from Syncrude, see below.
Meanwhile, the price for light oil in Canada, Edmonton mixed sweet, is estimated to remain above C$80 per barrel by year end.
These developments bode well for ZAR's Little Bow ASP project. Thanks to the current oil prices, ZAR's Little Bow ASP can generate significant returns and therefore can be sold on a separate deal, given that its breakeven price is about $65 per barrel (WTI). If ZAR sells just one of its oily assets with the same key metrics like Altura's (ATU) recent deals, ZAR will surpass C$1 per share.
Syncrude seen returning to full production in September
Jul. 9, 2018 7:27 AM ET |By: Carl Surran, SA News Editor
Suncor Energy (SU) says the Syncrude oil sands project, offline since a power outage last month, will ramp up to full production in early to mid-September, with pipeline shipments of treated product estimated to be 60%-70% of capacity for August.
The previous outlook had called for a return to full production by late July, although a report last Friday had tipped off the possibility of a longer outage.
Syncrude is capable of producing 360K bbl/day of oil; SU is operator and owns a 75% stake in the project, while Imperial Oil (IMO) owns 25%.