Connacher Oil is beefing up

Connacher Oil and Gas is starting to restructure gradually.It sold off it's Montana refinery recently and got some cash for working capital and debt reduction.It has put more money into it's Great Divide project.It's capital expenditures will be down slightly but more money will be spent on drilling and tieing in wells in 2013.It's production is down from 2011 but it is calling itself a single purpose project company.That project is the Great Divide project.Connacher is being helped in it's mission by the price of oil.The price is higher now than in late2011 and 2012.
Although production is down from 2012 it's reserves are robust.Connacher estimates that it's reserves are valued at almost $3 billion with a conservative discount factor of 10%.At a more practical discount factor of  3 to 4% these reserves are worth almost $5 billion.One analyst from Sprott Asset Management stated that it was almost bankrupt.This is a very broad brush.True production is down but they have strengthened their balance sheet and are drilling to increase production for late 2013.Koreans and Chinese and Japanese are looking for suitable buy-out options and Connacher is looking better now.They may not be at the top of the list but they will probably ask for a premium to the $5 billion value of their reserves.In the meantime they are trying to increase their production levels.
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