Hi rebels1;

My main concern when I did my pro's and con's blog was with my first negative comment concerning the fact that current updated production numbers from the Great Divide and Algar were not available. On page 10 of the 2011 Q1 Press Release, management stated the following:

"In light of legal restrictions relating to our previously announced tender offer for our outstanding notes and related transactions, there will not be a follow-up conference call to this press release, as is our normal custom. Also, there will not be a webcast of our Shareholder's Meeting nor will there be an operational update presentation at such meeting. Our normal procedures will be reinstated when we issue our Q2 2011 and 1H 2011 results, anticipated for August 11, 2011 with a conference call anticipated to occur the morning of August 12, 2011. Further call in and timing details will be provided." (page 10)

Look, Connacher's management are professionals and they knew that the Annual Shareholders Meeting was going to be held on May 17th, 2011. They publicized this for months on Connacher's website. We were all aware of this date. So why did management announce on May 10th that they were tendering an offer to repurchase the out sdanding "high yield" long-term notes? Why did they not wait until the day after the shareholders meeting to make this announcement? Then they could have "legally given us the most up to date numbers that they have on Connacher's bitumen production from Great Divide & Algar and the latest information that they have on where the new conventional lands are and the most up to date numbers that they have at the Annual Shareholder's Meeting. The Press Release from management stated:

" On May 10, 2011 Connacher launched a tender offer to repurchase its outstanding "high yield" long-term notes due in 2010 and 2015" (pg 6)

My question again is why did management not give shareholders the numbers at the Annual Shareholder's Meeting. That is what the Annual Meeting is for. So shareholder's can be given the latest numbers and information in addition to being able to ask management the questions that the shareholders have. This is our right as shareholders ...ie. to hold management accountable. By announcing the tender to repurchase the "high yield" notes on May 10th, this has conveniently enabled management to avoid answering any questions that shareholders who do not live in Calgary, or who could not attend the Annual Meeting might have. By announcing the tender to repurchase the oustanding "high yield" notes on May 10th, this has in fact given management until August 12th, 2011 to increase production at Great Divide & Algar (due to the methane injection project at Great Divide and the SAGD + solvent project at Algar) assuming that they are successful in lowering the SOR's at both projects with a resultant rise in production. 2Crude's comment that production at Great Divide and Algar probably have not changed as of today which is probably why management didn't report it is apropo here.

My third negative comment in my previous blog concerning the secrecy surrounding the new conventional project I interpreted from the following quote by management:

"Our Board of Directors has approved an increase in our full year 2011 cash capital budget, from $122 million to $162 million. The $40 million increase primarily relates to growth prospects in our conventional operations including $30 million related to the acquistion of petroleum and natural gas rights and a one-rig four-well programto continue the measured development of our Twinning Pekisko light crude oil resource play. This followed the early success of our initial three well horizontal drilling and multi-frac completion program initiated in late 2010 andexpandedin Q1 2011. The expanded budget also contemplates a tw0-well horizontal drilling program in a proximate area that is also prospective for light crude oil in another formation. The location of this region is currently held confidential for competitive reasons as additional petroleum and natural gas rights and other opportunities to secure additional exposure to the play are available to the company. Recently, we also purchased infrastructure and rights in the area for$10 million; this acquisition added key lands and rights and facilities which will acceleratethe timely development of opportunities in the region. We will update our conventional production guidance for 2011 to reflect this higher level of investment once we have an extension to the production history from our three existing Twinning Pekosko wells. New drilling wil not likely occur at Twinning or other area until 2H 2011 due to a protracted spring breakup which has delayed normal field operations. Actual production achieved and capital expenditures incurred during 2011 could differ materially from these estimates - please see "Foward-looking information" in the Advisory section & Risk Factors." (pg 23)

The numbers that management reported for the 2 wells that are already connected and producing at Twinning were released before and the numbers haven't changed from when they were first reported previously. I understand that the spring break-up has been protracted this year and that everyone in the industry is having difficulty accessing their wells due to rain and road bans etc. This is a fact of life. But it's easy to tell shareholders that they are not releasing any information about conventional production and the location of the "new area" for competitive reasons. I've heard so many times that all the oil has been already found in Alberta in the Great Basin, and that the oil companies know were all the oil is, that this "secrecy" by Connacher management isn't convincing to me. If they have already purchased new land rights as well as infrastructure in the "new area", then I'm sure that their so called competitors know as well. Since the market seems to know every bit of news before offical Press Releases are made and the Annual Shareholders Meeting it seems a bit ridiculous to me to lower the cone of silence as management has done now.

Cheers; Scott