For those who havn't already seem this.
Connacher Oil and Gas Limited provides Algar update
CALGARY, Oct. 23, 2009 (Canada NewsWire via COMTEX News Network) --
Connacher Oil and Gas Limited (CLL - TSX) announces today that on October 16, 2009 a major milestone was achieved at the Algar construction site with the engineered lift of the two evaporator towers ("towers"), which constitute part of Connacher's second 10,000 bbl/d steam-assisted gravity drainage ("SAGD") plant at its Great Divide oil sands development project in northeastern Alberta.
As shown on our website at www.connacheroil.com under the caption "Algar Slideshow" and also as available at http://files.newswire.ca/574/Algar_Evaporators.pdf, the first tower, which weighed over 476,000 pounds and stands approximately 150 feet tall, approximately 40 feet taller than the evaporator towers at Pod One, was installed initially, followed by the second, smaller tower. These lifts required a sound plan, excellent teamwork, communication and cooperation among a wide range of disciplines, as well as favorable weather conditions with limited wind. The towers were transported to the site by truck, including over Connacher's newly-constructed road from Highway 63 to the plant site. This road was carved out of muskeg in a remote area and the towers were installed on reinforced concrete bases, situated on piles driven into the muskeg. The towers were each stood up in approximately four hours and are expected to be in place for approximately 25 years.
Construction at the Algar project is proceeding on time and under budget at this time, with a target to complete the plant and tie in the associated seventeen SAGD horizontal well pairs in early April 2010. Thereafter, it will take approximately one month to commission the plant and steaming of the well pairs should start in May 2010 and last approximately three months before first production in approximately August 2010.
Thereafter, rampup towards full plant capacity is anticipated to occur between startup and year end 2010 or early 2011. Completion of Algar will double Connacher's capacity at Great Divide to 20,000 bbl/d of bitumen.
Connacher is very pleased with the progress at Algar, as highlighted by this installation of the evaporator towers in a most timely and efficient manner. Barring any unforeseen problems or unduly adverse weather conditions, the company remains optimistic about the timely, cost effective completion of the Algar project and then its eventual impact on the company's production levels from the region.
Separately, with the recent closing of the $30 million flow through equity financing, after freeze-up Connacher will immediately be embarking on a multi-well core hole drilling program, primarily on the northwest portion of its main lease block at Great Divide and to a lesser extent on its 50 percent-owned Halfway Creek acreage. Additionally, 3-D seismic will be shot on Connacher acreage in the region.
