1984:

You ask me what I do like about CLL? Allow me to answer this with my reasons for investing in CLL and as I see it, what some of the factors constraining CLL's SP have been, along with a comparative example which I feel is applicable.

Initially I was impressed with CLL's integrated approach which would ameliorate risk while offering the opportunity to invest in the Oil Sands. Additonally, Connacher through Petrolifera, offered a conventional opportunity through Petrolifera. All in all, a compelling opportunity.

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.

Then recently we learned that due to the events of last year, remaining capital was no longer sufficient to complete Algar. The result? A needed financing resulting in a significant dilution achieved by virtually a doubling of shares outstanding along with a cratering of the SP.

Simultaneously, we have observed the ongoing travails of Petrolifera. A to date, one would have to confess, true fiasco that seems with each new iteration approaches the sublime in now two countries. Argentina and Colombia.

Now lets consider another operation nearly identical in its approach and foot print. Petrobank. Each operation has a similar footprint right down to shared diversification's including oil sands operations, domestic oil and gas conventional production, South American operations, the differences, Petrobank has no refinery and Connacher has no Bakken production.

There is one major difference in these companies however. Petrobank closed today at $43.69. They started out four years ago nearly identical in SP!

Have I given up on Connacher. By no means. But, when does management get held to responsibility for results??

Brian