As Connacher continues to go forward with Algar, it will increasingly be drilling up its Luke natural gas properties to produce more natural gas to offset the natural gas being burned by the steam turbines at Algar and the co-generation plant. We know from past quarter reports and from the 2008 Annual Report, that Connacher currently produces enough natural gas (for sale) to satifsy the entire amount that it needs to buy for consumption at POD 1 . In addition, the Luke properties are providing about 30% of the natural gas that Connacher will need for Algar, so if Connacher is to keep its integrated 3 legged stool (bitumen production/ natural gas production / refinery in balance it is going to have to drill a lot of natural gas wells in the winter of 2010 and 2011 etc. Since some analysts (Bill Harris for one) are predicting that natural gas sales will be flat through to November 2010 it appears that the price for natural gas may start to go up by the time that Connacher will be drilling more wells on its Luke properties.

On another matter, it was mentioned in either the Q3 report or in the last conference call (I am not sure which one) that Connacher is considering the use of spraying solvents (asphaltene??) in the reservoir to enhance its bitumen production as Encana is presently doing in its SAGD operations. It was mentioned and I wonder how seriously management is considering this possible option.

Best Wishes; Scott