Connacher Oil and Gas

Hi Jurek

Couldn't found the 2008 dec. presentation anymore .Had only this one stored.

So if you look closely indeed just at around dec 2008 they hit for a very short time 8000 +and then fell back to the levels we are now at average of 6500.Also Algar is operating around this level.See this chart

So to predict we are in decline is IMO very short thinlking.Maybe this level is with current knowledge and available technical assistance the best output.So far they are testing their SAGD + and will update next quarter is results are sustainable.

It's clear that with all we have learned so far past years that sagd is a complex operation.But like you stated it's like CLL is a worthless company in decline already so builiding these 2 pods in fact was for spending money ?If the debt wasn't that high they could make money but there are many factors that can influance the results like energy cost,bitutem price ,economic situations etc..

Let's assume that the design capacity will never be reached which IMO is very possible .But they could get better output with lower SOR.As they showed on their website looking to the advantage has been made in telecom and other applications past years it's enormous.Just like they have implemented horizontal drilling in earlier wells oil companies abandoned years ago are now producing again.There are some in the netherlands again on stream.So technic can bring more sollutions.

Supposing that the 44.000 project they had in mind only will provide arpond 32.000 levels a company with far less debt can make some money.

That's why i think 1 $ is to low.

You have almost very negative impression on this company and at some points I agree .I was not always happy how things have develloped.I've been in stocks for very long time and have bought a lot of different companies.Many of the companies I had hold were subject to take overs or in bad shape but when it has come to fact a lot of them jumped up much higher then the sp was at that time and the take over part mostly dropped in value.

I'm not going along with those predicting levels above 3 and higher but 1 is to low.As i said earlier the seller could sell later on MRC or other assets and only focussing on the sagd part.Now we have only the production of the 2 pods but within 3 years many things could have changed and if they could go along with a JV or are taken out fact is production will be higher.Maybe there are better ways to transport the bitumen ass well.