Gentlemen:
It is with great regret that I read your latest quarterly Report. It seems that the Management of Connacher just cannot get beyond a level of chronic disappointment with regard to the planning and execution of the development of The Great Divide.
Today we are finally made aware that Pod 1 is under performing its design capacity by approximately 35%. A disappointing result which by some quirk did not get reported to shareholders until more than a year a year past the point when considerable corporate resources were expended in retrieving productive capability. Are we to understand that these resources of capital in design, labor, planning, consulting fees and all other costs of this effort have been wasted as it pertains to the objective of permitting the attainment of at least near design parameters? Would it not be understandable if many of your investors were to be highly disappointed not only in the expenditures of precious Corporate capital but, dimunition of their personal resources in such a meaningless and unproductive effort? Would it be unreasonable if investors in Connacher felt that the squandering of precious Corporate assets at a time of considerable need for prudent marshalling of Corporate assets represented a major shortcoming on the part of Management and the BOD in excuting their responsibilities?
But there exists justifiabily, an even greater potential concern. From where should your Shareholders draw confidence that the performance level in the recently commissioned Algar production field will be a more efficacious and productive deployment of shareholder capital?
It seems to me that the concerns contained in this query, are appropriate and valid concerns of Connacher Shareholders. Deserving of being answered fully and honestly by the Management and BOD. After all, it is our Company too. Not just those of Corporate insiders And we cannot afford a repeat of the Pod 1 experience.
Brian Miller
