Thursday, September 27, 2012

Connacher gets approval for Great Divide expansion

Conacher assets, including Great Divide.
From  http://www.energy-pedia.com 
Connacher has received ERCB approval for its Great Divide expansion project. The plan for the SAGD project is to add 24,000 bbl/d to the current production capacity of 10,000 bbl/d.


Not really sure why this isn't called the "Algar Expansion Project" since that's the name of the project they're expanding, and I'm also not sure why it's called "Great Divide" when it's so far from the actual Great Divide, but maybe I'm thinking too hard.

Algar came online in 2010, with capacity to produce 10,000 barrels per day by early 2011. The company has a nice writeup on the property containing everything of interest except actual production. So off I went to the oilsands review and story checks out - they produced on average 13,777 barrels per day in 2011, and have produced 12,050 barrels per day on average in the first 6 months of 2012.

But more confusion is added - they refer to Algar as Great Divide in their tables. Further research reveals the project area is called Great Divide, on which there are two operating projects - Algar and Pod 1, apparently the pilot. I reread the text above and come to the sad realization that it is no longer internally consistent.

1 comment:

  1. Connacher has always been a big disappointment to me personally and the market (according to their stock price). Pod 1 and Algar have a design capacity of 20,000 Bbl/d @ a SOR of 2.85, yet they have averaged 12 mBbl/d (13.5 mBbl/d in 2011). This puts them just above Nexen's Long Lake project in the performance department. I wonder how well the 24 mBbl/d expansion project will do? Maybe 24 mBbl/d is really code for somewhere between 15-17.5 mbbl/d.

    So now they are dumping their refinery, which produces half of their revenue and basically doubles their netback. Don't worry investor, they bought some rail cars to add value to that dilbit, whoopie!

    Is it any wonder there was no interest a year ago when they put themselves up for sale?

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