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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: Conference Call

Conference Call

posted on Nov 12, 2009 12:22PM

I listened to the conference call this morning and took notes. I waited until the analysts had asked their questions and then tried to get through to ask the questions that we wanted the answers to and the operator ended the conference call before I had a chance to ask any questions. For future reference, I guess you have to acknowledge that you want to ask questions when the operator first asks if anyone has any questions at the beginning or you won't get a chance as the operator does not come back later at the end to acknowledge shareholders questions.

1) The turnaround at the Montana Refinery has been completed.

2) POD 1 , after the turnaround, was back to producing over 8,000 bbl/d of bitumen before it started to run into trouble with water purification problems at the end of September so management will not give out any production numbers until this issue has been solved.

3) Management will not give current production numbers due to problems with the evaporator and water purification problems.

4) The large sell off by one mutual fund has ended. The fund is still owns about 10% of Connacher's shares. They needed the money for another investment. Dick Gusella stated that he expects that the share price will now increase with the end of this sell off.

5) Drilling the SAGD wellpairs at Algar has been outstanding to date.

6) Algar bitumen production is projected to commence around the end of August 2010.

7) Commerciality could be declared at Algar in Q4, 2010.

8) Connacher will end 2009 with enough capital to easily complete Algar & have enough money left over for all of its other projects.

9) A major reserve update will be conducted after this winter's core hold drilling program has be completed.

10) Issues with POD 1: Connacher's production was back over 8,000 bbl/d after the turnaround during which Connacher did a number of well workovers to increase production....they then started getting solids from some of the worked over wells so they had to halt production from them and clean out the evaporators. They have used different chemicals after the turnaround to deal with this to solve the problem. POD 1 has always had clean water up until the turnaround , now they are getting other materials for the 1st time that they didn't foresee. The well performance is very good. Since the Great Divide started operating they have had to change the chemicals etc. to optimize production trying to reach the "sweet spot" . They are still working on this. Problems with the water always end up at the evaporator it was stated. This is a constant learning process as POD 1 progresses.

11) 9,000 bbl/d will be the maximum production at Great Divide in 2010 was stated to an analysts question.

12) Connacher is talking to "other parties" about joint ventures which would be to speed up Connacher's future development plans to 50,000 barrels if it will be profitable for Connacher. Dick Gusella said, other parties are coming to him with proposals. Connacher is ready to go it alone but if someone brings him a deal that will be profitable for Connacher he will consider it and if it has merit he will submit it to the board if it benefits Connacher.

13) The $50 million dollar US credit facility will have caveats attached to it.

14) Production of 5,000 bbl/d at Algar will result in commerciality being declared in 2010 but production numbers will not be released until commerciality is achieved.

15) 1 new ESP was installed during workovers, 6 wells in the north end and 1 well in the south end of POD 1 were adjusted.

16) Cameron Todd stated that there is a shortage of heavy crude in the Gulf of Mexico refineries which has resulted in narrow differentials which he predicts will continue for some time in the USA. Connacher's Montana refinery is shielded as it is producing asphalt which many refineries no longer produce.

17) Sand is not an issue with causing any pump problems at Connacher as one questioner asked saying that he read about it on an internet bulletin board. Pete Sametz stated that he reads the boards from time to time and 90% of what is reported isn't true.

Is there is anything that I missed, listen to the replay and report the information on this board.

Best Wishes; Scott

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