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Gold/Mining/Energy : Oil Sands and Related Stocks -- Ignore unavailable to you. Want to Upgrade?

To: MIRU who wrote (1950)	8/22/2005 3:16:08 PM
From: Taikun	Respond to of 25575

CLL has spoken of using the latest technology although until we find out how much oil is in Pods 2-4 this is still a small projects. PBG, with 84%WI on 1.3bn bbl is definitely a project with scale, and it has the higher market cap as well. Just as UTS has grabbed alot of attention due to the share price, though, I think as long as CLL is <$5 it can do the same. CLL has more acreage, 70,000, and a 100% WI compared to PBG's 84% on 28,800 acres. I think PBG is possibly a slightly better run company although CLL excels when it comes to PR. PBG has THAI, which is an extraction technology. I am not completely sure but I heard OrCrude doesn't replace THAI, they are used in different parts of the process. One point to remember on OPC, though, is the high CAPEX. Of course, they're producing 37 degree API oil or higher, but at a cost of $58,333/bbl. On the other hand, operations producing heavy oil like BVI run about $15,000/bbl. This is probably what CLL would end up doing, as they don't have the scale at present to have their own upgrader. PBG can also only produce 10 degree API crude from THAI directly without an upgrader. The THAI pilot will produce this partially upgraded bitumen. You are right that this problem with producing heavy oil diminishes the value of the project. BVI.TO still commands a $1bn mkt cap for 800m bbls OOIP and some conventional production, so if PBG and CLL got to that point it would represent more than a triple from here for PBG and 5x for CLL.