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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: A MESSAGE TO CLL MANAGEMENT!!

Hi Brian

You're very early this morning.Nice writing here.

Indeed i have concerns myself since a long time about their credibillity.But from last report I'm struggeling over the power outages.Indeed they could have mentioned it before instead of just report it now.So it's not clear if they are hiding behind these events or is there more on hand then just these power outages .That's why I would like to know from guys living in that region if indeed they have so many power outages.From experience in my company we have those events as well but very rarely and a power loss reflects in a complete shut down and we had to start everything all over.If these power outages are very short then damage is limitted but they speak of it is important to produce and inject steam on a consistent basis and frequent power outages has upset this quoient .I can't imagine that a short period can bring a lot of damage.So if they speak about power outage for how long does it then occur?Then we can ask ourself if this is so important why they did that curtailing period ?How is it possible that we are now lower then in first half year they started up.It looks very nice then and sp followed the ramp up.

But like you said because there is such a loss in management confidance it's hard to shift the real truth from what we are thinking it's a hiding after events to cover their imcompitence.They indeed need to explain a lot more in details were the bottle neck is why they can't reach their target.I even don't think it's possible to achieve 10.000 bpd and I don't count on it Algar can achieve it too.Maybe some guys like 2C can give a better view on these operations.However speaking from my company which was designed for a certain output in real we are running now almost double for what it was designed first.But maybe SAGD operations is a more complex situations .

I'm really curious on reaction on the sp, today.In the worst case we start a sideways trend and fall trough the support.Once again for us another period of waiting until we hopefully get some brighter news.

For me about their expansion projects they can wait until they get production to a stable level near design until they go forward.

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