Business
Connacher continues strong earnings performance during third quarter 2009; Algar construction reactivated and proceeding favorably, on time and under budget; Positively positioned for 2010; Conference call scheduled for 9:00 AM MST November 12, 2009
Connacher continues strong earnings performance during third quarter 2009; Algar construction rea...
About this update from Medexus Pharmaceuticals Inc.
[{"type":"text","content":"\n\n\n\nNov. 11, 2009 (Canada NewsWire Group) -- CALGARY, Nov. 11 /CNW/ -- Connacher Oil and Gas Limited (CLL-TSX) extended its strong earnings performance during the third quarter of 2009 (\"Q3 2009\"), buoyed by continued operating progress, foreign exchange gains and stronger crude oil prices. Construction at the company's second 10,000 bbl/d steam-assisted gravity drainage (\"SAGD\") project at Algar advanced significantly over the summer months. Drilling of the planned 17 SAGD well pairs also progressed at a most favorable rate. A plant turnaround at Pod One was completed in September 2009 and the scheduled turnaround at our Great Falls, Montana heavy oil refinery is nearing completion. Remedial work at certain of our conventional properties was also accomplished in a timely and cost-efficient manner.Having strengthened our balance sheet during the second quarter of this year (\"Q2 2009\"), we were well financed when we initiated our Algar reactivation. We continue to hold significant cash balances to meet our financial obligations, construct Algar and sundry related facilities and anticipate a timely completion of the project by approximately April 2010. Thereafter, we will require approximately one month to commission the project, followed by approximately 90 days of steaming of the horizontal well pairs, after which we will commence the rampup towards plant capacity, which we anticipate could occur by early 2011. We remain optimistic about our outlook in this regard, as we are about the continuing production buildup at Pod One.Our refining business has experienced a better year in 2009 than occurred last year. Strong asphalt prices emerged, although poor weather and a slow pace of construction of infrastructure projects during the summer months did not allow full realization of the market's potential. We are nearing completion of a successful turnaround at our refinery, after 3 1/2 years of operation since the last such undertaking.During the quarter we successfully maintained our significant stake in Petrolifera Petroleum Limited through a modest investment in that company's financing program. We continue to believe Petrolifera has an excellent inventory of prospects with vast potential.Our focus during the remainder of this year and into 2010 is to complete Algar, expand our bitumen production base, complete another ro...