Strata Power Corp. (SPOWF)

[grapeman]

State of Oil Sands -
via another board post -
From an operational point of view this is where they stand today ... http://finance.yahoo.com/news/Canadian-Oil-Sands-2010-Cash-iw-35032736.html?x=0&.v=1

1. The total cost of production per barrel of oil was $49 and this includes depreciation and royalty fees.

2. Their energy balance is 6 to 1, you can see that by looking at how much natural gas they purchased to produce their oil. They can surface mine their bitumen so they don't need to steam water. They only need to heat water once they get it to their refinery. I would call this good.

3. Their final product is light sweet crude so I don't see why that needs any conventional oil to help it through the pipeline.

4. They recycle 87% of the fresh water they use and it looks like all of the oil sands producers are only using 0.4% of the flow of the Athabasca river when they are allowed to use up to 1.6%.

Management is planning to expand the syncrude consortium production.

http://www.cdnoilsands.com/Theme/COS/files/FinancialReports/AnnualReport2010/2010%20Annual%20Complete%20-%20FINAL.pdf

Concerns?
1. Higher royalty rates starting in 2015.

2. The carbon limits. It's kind of crazy, of course oil sands is producing carbon because this is a product that Canada is exporting. If Canada was building cars for export then that would be producing carbon as well. It is interesting that Energy Alberta Corporation has already applied for a nuclear power plant license in that area.

Good company but I'll keep my eye on how the carbon legislation progresses.