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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: Re: A Question for CLL Investors! - BKM8572

Sep 11, 2009 11:28AM
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Sep 11, 2009 04:32PM
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Sep 13, 2009 05:35PM
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Sep 14, 2009 03:03PM
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Sep 14, 2009 04:05PM
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Sep 14, 2009 06:44PM
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Sep 15, 2009 03:19PM

Hi Brian - I appreciate your input to the board on a continual basis as your bring a perspective to the board which frequently challenges me and others to rexamine our positions on CLL on the various issues which arise on this board. This results in a healthy discussion taking place and I do sometimes change my position because of what you have stated.

I must however, take exception to the statement that you made in the following posting on September 15th:

¨All was proceeding nicely on virtually all fronts. Until one year ago when the current economic reality presented itself. Leading to managements decison to take off line production at Pod 1. Initially this seemed a wise selection in order to save operating costs at a time of low margins resulting in operating at a loss. A situation which in short order resolved itself resulting in the reestablishment of production at Great Divide. In short order, it became apparent that reservoir damage had taken place with resultant deterioration in productive output. Great Divide is still not at previous production levels nine months later. Additionally, additional capital has been expended in the attempt to establish productivity levels equivalent to a year ago. Total lost revenue and profitability impact is still not known to any but those on the inside. However, it has to have been considerable.¨ - Brian

Where is your evidence that physical damage has been done to the reservoir? Please reveal to us your sources. During the cutback in production Connacher's engineers installed 4 ESP's (Electric Submersible Punps) as you know, which required the overall temperature in the production reservoir or steam chamber, to be lowered to accommodate the ESP's which must be continually operated at a lower temperature. It has been stated by Connacher management, that they have decided to slowly raise bitumen production from the reservoir to preserve the security and proper operation of the reservoir (steam chamber). This is far from your assertion that ¨reservoir damage has taken place with resultant deterioration in productive capacity.¨ I am drawing this to your attention and everyone elses because if it is true that reservoir damage has in fact taken place as you suggest, many of us would immediately sell our shares and get out of Connacher right now and the share price would drop substantially. I have read no mention of reservoir damage anywhere, and if such were the case Connacher would have been forced to issue a press release on this as it would have a profound and negative effect on the share price. Much as Cammeco was forced to issue an immediate press release when there was a flood at the Cigar Lake Mine. You need to choose your words carefully in the future. Unless you can provide factual evidence and your sources; then I respectfully submit that your statement is pure speculation and conjecture.

Best Wishes; Scott

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