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Connacher is a growing exploration, development and production company with a focus on producing bitumen and expanding its in-situ oil sands projects located near Fort McMurray, Alberta

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Message: Re: Poor Production
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Rebels:

To answer your question:

First, I commend Sharky for his post in response to your question. Secondly, I add the following thoughts.

1. It is not I who attempt to deceive people. The reality of the SP is what it is and reflects what the market place appraises the results of Management actions. You can argue with this however, that is the reality.

2. It is undeniable that the past 9 months have been a difficult period. However, Management gets handsomely compensated for managing adroitly under all circumstances including challenging conditions. As Sharky adroitly points out, a loss of 80% of market cap in less than one year, is slightly less than ideal performance.

3. As member 10000 points out in his post of yesterday, we have declined in production in the past 9 months from nearly design capacity of 10,000 BPD to roughly 6,700 at Pod One. Who made that decision to take production off line and imperil the reservoir performance? The net effect of which is 1,100,000 Barrels per year. Do the math on the annual cost of that decision. Further, will we ever get Pod 1 back to design level of 10,000 BPD? And if so, at what cost?

4. You may say that the past year has been a frightening, difficult time to achieve operational effectiveness. Agreed! However, at the end of the day, I do not care! Instead, I expect return on my capital. All would have to agree that under that metric, this as an investment leaves a lot to be desired! Who would you suggest be held accountable for operational effectiveness if not DG? Could any claim that we have experienced operational effectiveness? Or investment effectiveness?

5. Given the performance of the past year, should we assume that a different level of managerial effectiveness will be demonstrated going forward? If so, Why? That is a question every investor in Connacher has a right to an answer to!

Brian

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