Connacher is the owner of two Steam Assisted Gravity Drainage (“SAGD”) developments. The first development is known

as the Great Divide Pod One SAGD project (“Pod One”). The second development is the Great Divide Algar SAGD

project (“Algar”). Located eight kilometres apart in the Divide region near Mariana Lake, Alberta, in the Municipality of

Wood Buffalo, these projects were each designed for extraction of 1,600 cubic metres (“m3”), or approximately 10,000

barrels per day (“bbl/d”) of bitumen.

Connacher commissioned Pod One in September, 2007. It is currently operational and is in the process of ramping up to its

design capacity of 10,000 bbl/d of bitumen. The Algar project has been approved by the Energy Resources Conservation

Board and Alberta Environment. Connacher is proposing to expand the productive capacity of these facilities by an

additional 3,700 m3 of bitumen per day. Combined, the overall lease production is anticipated to be approximately 7,000

m3/day (44,000 bbl/d) of bitumen for 25 years based on currently identified reserves and resources in these project areas.

This expansion is collectively known as the Great Divide SAGD Expansion Project (“Expansion”).

Connacher is pleased to introduce its proposed expansion plans through this Public Disclosure Document. This document is

intended to provide regulators, stakeholders and the public with information about the Expansion and Connacher’s

anticipated project development timelines. Connacher is committed to working collaboratively with regulators, other

industry players and the community to ensure that the project is developed in a timely, environmentally and socially

responsible manner.

Public consultation is an integral part of the Expansion. Your involvement is important and fundamental to assisting

Connacher in planning this expansion. Connacher’s approach to public consultation is to ensure that all directly-affected

stakeholders will be kept abreast of activities so that stakeholders’ interests and concerns are identified, understood,

respected, and addressed.

Connacher is excited to be playing a role in the development of Alberta’s oil sands by utilizing a sequential and technically

prudent small scale approach that is respectful of the land, air and water resources while maximizing a broad range of valueadded

benefits. Connacher looks forward to discussing its plans with you.

Yours truly,

Richard Gusella

President and Chief Executive Officer