Hi Scott,

It seems Connacher tries never to use the same factors in their releases in order to make comparisons or interpretation difficult.

My interpretation is that production is limited by steam production capacity.

I am assuming that the 27,000 bbl/d "nameplate steam generating capacity mentioned in the latest release is just another way of expressing the "Steam Generation capacity of ~ 440,000 lbs/hr @ 1000psi" found in the Project Technical Summary.

In layman's terms, I believe that current maximum production is limited because it currently takes more steam to produce a barrel of bitumin than planned. As a result, unless means can be found to lower the amount of steam needed, (downhole pumps, 100 % capacity steam production, fewer/shorter planned shutdowns, better quality output etc), Pod1 will never produce at the planned 10,000 bbl/d capacity. In 2010 for instance, the company is aiming for an average SOR (Steam/Oil Ratio) of 3.2. This translates into 8500 bbl/d (27,000/3.2 =8437.5) of production from Pod1. Note that this is their target. If steam production falters, or other problems arise, it will not be possible to meet this target.

Of course it is possible that additional pumps and other factors may combine to improve output which would result in surpassing the target of 8500 bbl/d. So far, past results show that Connacher has failed to achieve the original plan. SAGD is still a new process and future results might be better as unexpected problems are overcome.

Let's keep our fingers crossed.

IMHO

XBB