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Taken from Connacher's 2008 Annual Report, on page 7/8:

We also intend to examine other opportunities to
restructure components of our balance sheet, in the context of lower commodity prices. With our significant cash balances and anticipated
Connacher Oil and Gas Limited 2008 annual report
positive net operating income from our upstream and downstream operations in 2009, we anticipate being
able to fund all of our capital spending activities and meet all financial obligations throughout 2009, even if
crude oil prices stay at WTI US $45/bbl for the balance of this year, without having to raise any additional

capital and assuming a stable crude oil price differential regime.

We will likely soon complete arrangements
for a new more modest credit facility that is viable in the current circumstances. This added flexibility, if
completed, would also assist us through 2010, if circumstances do not improve as we anticipate.