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CALGARY – Low oil prices and tight capital markets are making it difficult for oilsands producer Connacher Oil and Gas Ltd. to survive, as analysts say the struggling bitumen player won’t make enough money to cover its debt payments next year.

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On Monday, heavily indebted Connacher became the latest in a line of smaller oilsands companies to launch a review of its costs, capital and liquidity options in recent months.

“I think that the current market environment affects everybody,” Connacher president and CEO Chris Bloomer said of troublingly low oil prices. The West Texas Intermediate benchmark price for oil closed Monday at US$69.00 per barrel, up US$2.85 from Friday, but down 30 per cent since June.

“We have said that we need to look at our balance sheet and we are looking at that now,” Mr. Bloomer said.