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RE: Update2-Nexen, Opti Canada May Be Targets OS Deals

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#6172

Charles Randall
Participant

Here is update on Oil-Sands Merger Mania – which started with the recent Suncor-PetroCanada merger, and now projected for Opti & Nexen given fall in crude oil /asset values.
 
I don’t know where they are getting that it now takes $80/Bbl for Bitumen investments to be profitable since most of the existing assets were brought in at time when crude was less than $30/Bbl. (Think it was holdover from higher speculated crude and project cost that have dropped significantly).
 
And the new SAGD process was expected to have less cost than the old mining (most existing producers) process – of course there are higher cost taxes, royalties & environmental investments which have all increased for Oil-Sands projects.
Regards 

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