Dondon

I believe that Connacher is still a very good long term investment choice. I also believe that Connacher’s management has made the appropriate decisions based on the available information at the time they made them. In hindsight, some may now appear to not have been the best, but in my opinion they were the best at that time? If we look at Connacher today, we find:

1. Proven, very large oil sands reserves with only a small portion of their overall holdings tested.
2. Proven production methodology to exploit their holdings.
3. 25% interest in Petrolifera, another company with huge potential with large holdings in Columbia and Peru and current production in Argentina,
4. Sufficient fundings to support their operations for the next couple of years.
5. Priced in Canadian dollars with debt based in US dollars.

If Connacher achieves its goal of 50,000 barrels a day production, I believe that your estimate of it being a $20. per share stock at that time to be very reasonable, perhaps even a little conservative. If Pertolifera achieves its potential, Connacher could easily have a stock price much higher than that.

Martin