Buy-recommended Canadian Oil Sands Trust (OTCQX:COSWF)’s 36.7% owned Syncrude rebounded to the third highest monthly average in February after a dip in January.
The world’s largest oil sands producing facility scored another record twelve month average as it advances to steady operation at 350,000 barrels daily. Chief Executive Marcel Coutu disclosed at a presentation on February 23 that the plant was operating at the full rate in recent days.
While the new coker, number 8-3, and the most important operating unit, was operating below design capacity, the older cokers, 8-1 and 8-2 were making up the difference. A new operating agreement with ExxonMobil (NYSE:XOM) promises less volatility in future operations.
We think the slow “ramp-up” to expanded capacity has held back COS stock temporarily. As a result, stock price may score gains just ahead as new volume records are set. Canadian Oil Sands Trust remains our top oil recommendation with its highest representation in crude oil production and its double weighting in the illustrative McDep Energy Portfolio, concentrated on real assets promising a high return providing clean fuel for global growth.
Originally published on March 2, 2007