I thought that it might be an interesting exercise to compare JACOS (Japan Canada OIL Sands Limited) to Connacher in terms of their operations in Alberta. I got my information from documents available on the JACOS website: http://www.jacos.com/ and Connacher's information from the Q2 Presentation, 2008 Annual Report, Connacher's Public Disclosure Document for its EIA expansion, and from the Raymond James December 2005 report.

JACOS land position:

- 75% interest in 72 sections of land that make up the Hangingstone leases, with Nexen lessee of the remaining 25% interest,

- also 46,000 net hectares in Athabasca Region: Hangingstone, Chard, Corner, Liege, Thornbury areas.

Connacher land postition:

- 100% interest in 98,000 acres of oil sand leases

- includes pooling arrangement with AOS at Halfway Creek

- 107 sections (68,480 acres) of oil sands leases (2006 Raymond James Report)

JACOS History:

- JACOS’ Hangingstone SAGD project is in it’s 10th year of operation

Connacher History:

- Connacher’s Great Divide Project is in its 2nd year of operation

JACOS SAGD licensed capacity:

- Hangingstone’s maximum licensed capacity is 11,000 bbl/d of bitumen

Connacher’s SAGD licensed capacity:

- Great Divide and Algar each have a maximum licensed capacity of 10,000 bbl/day of bitumen

JACOS’ current bitumen production:

- 8,000 bbl/day of bitumen from 19 horizontal well pairs at Hangingtone

Connacher’s current bitumen production:

- 7,900 (to 8,500) bbl/day of bitumen from 17 horizontal well pairs at the Great Divide

JACOS Hangingtone lifespan:

- 20-25 years

Connacher Great Divide / Algar lifespan:

- 25 years

JACOS Hangingstone expansion:

- up to 35,000 bbl/day of bitumen for 25 to 30 years

Connacher’s Great Divide/Algar expansion:

- up to 50,000 bbl/day for 25 to 30 years

JACOS staff:

- 45 employees at Hangingstone- 30 employees in Calgary office

Connacher staff:

- 42 employees at Great Divide- 52 employees in Calgary Office- 96 employees in Great Falls, Montana

JACOS co-generation plant:

- plans for a co-generation plant are being studied at present for Hangingstone

Connacher co-generation plant:

- is being constructed with the Algar project

JACOS EIA expansion:

- application for EIA expansion is targeted for Q1- 2010 submission, for startup in Q3-2011 and Q4-2014 completion

Connacher EIA expansion:

- application for EIA expansion is targeted for Q4-2009 submission, for startup in Q2-2011 and Q3-2012 completion

JACOS natural gas production:

- JACOS holds a 25% share of a natural gas property at Liege which currently supplies 50% of the natural gas needed for its Hangingstone project.

Connacher natural gas production:

- Connacher owns 100% of its natural gas producing properties @ Martin Creek, Latornell, Gilby/Three Hills which produce 12.5 mmcf/d

- currently sells its natural gas to offset the cost of purchased natural gas for the entire Great Divide Project (10mmcf/d)with 2.5 mmcf/d left for Algar in addition to 6 mmcf/d behind pipe.

JACOS refining:

- JACOS has no refining or upgrading capacity

- JACOS currently trucks its bitumen to local upgraders

- as production increases with EIA expansion it will need to ship via a pipeline

Connacher refining:

- Connacher owns its own refinery MRC in Great Falls, Montana to hedge the production cost of its bitumen.It doesn’t use it’s own bitumen at MRC but uses Bow River Crude as feedstock to capture much of the heavy oil price discount

- Connacher currently trucks its bitumen to local upgraders

- as production increases with EIA expansion it will need to ship via a pipeline or via train cars to Gulf Coast refineries in USA

- MRC refinery currently produces diluent for Great Divide

If anyone has any more information on JACOS in terms of SOR’s etc. the information would be most welcome and I will update this comparison.

Best Wishes;Scott