Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Raymond Duray who wrote (20820)	3/25/2003 7:38:00 PM
From: Ed Ajootian	Read Replies (2) \| Respond to of 206131

Ray, tar sands costs -- See slides in the middle of this presentation, twst.com , which was recently put on by Western Oil Sands (WTO.T), who is a partner the latest oil sands project to start up. In fact Shell Canada, their partner, just announced production startup today. I believe the slides on costs per barrel are around slide #16 or 17. Looks like their production costs are gonna be around C$10/bbl plus feedstock costs, which are the wild card since most of the feedstock is natural gas. They had estimated C$2.50/bbl. for this but it looks to be a tad low based on current AECO gas strip price. I still own a little WTO but sold most of my position to reduce margin exposure for awhile.

To: Raymond Duray who wrote (20820)	3/26/2003 2:37:27 AM
From: energyplay	Read Replies (1) \| Respond to of 206131

Canadian Oil Sands Trust -COS.un or COS.to - I think they have that cost in their in their press release. There's another biggie called SynCrude, and some other operations up there. One way to think about Tar sands is they are heavy oil on the surface. Unfortuanately, there's no heat or pressure, and most of the volitile compounds evaporated long ago, so it's not as easy to turn it into liguid. I think I remember something from Hart's Energy Investor about the oil sands production growing 20% per year, and this growth rate expected to continue. That makes Yergin's comments more reasonable.