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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: Algar done on time maybe on budget...

Hi believe in CLL;

In order for Algar to be expanded beyond its current 10,000 bbl/d of bitumen design capacity several things have to happen. Later this year Connacher will submit its final designs and environmental application materials to the ERCB later. Management expects that they will get the Ok to build the expansion starting in 2012 as stated on page 30 of the latest presentation http://www.connacheroil.com/en/documents/presentation/cll-2010-04-ppt-v2.pdf

In terms of building the expansion, DG already stated that Algar will be the central processing facility for the bitumen, and snap in modules will be added to the Algar facility to enable it to process the extra 24,000 bbl/d of bitumen (34,000 bbl/d of bitumen total including Algar's 10,000 bbl/d bitumen production). For Phase 1 of the expansion (there are 3 phases), Connacher will have to build 6 remote satellite well pads and drill 35 to 40 more well pairs and pump the steam to them to produce the extra bitumen. If you look at the Public Disclosure Document on Connacher's website it will explain everything that you need to know that is currently available on the expansion. http://www.connacheroil.com/en/documents/corp/CLL-2009-03-Public-Disclosure-Document.pdf

The Public Disclosure Document is on CLL's website if you click on the About Us tab, it is the first item dated March 9 , 2009 under Corporate Certificates and legal Documents. Page 12 shows the diagram of the 3 Phases of the expansion project.

2C has already given a detailed explanation that POD 1 is limited to it's existing design capacity unless 200 - 300 million more dollars are spent to enlarge it by replacing a lot of its current parts which would be a huge undertaking which may not be very practical.

Connacher will not be producing 40,000 bbl/d of bitumen at the end of 2011. The number will be closer to 20,000 bbl/d of bitumen if everyting goes according to plan.

Best Wishes; Scott

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