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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: Technical Question re Cogeneration Plant

I'm interested in the cogeneration project also. The information below can be found within the Q3 2008 Financial Report.

By the way, I wonder what's up today? Nice rise on pretty heavy volume. Cross your fingers.

"We anticipate these projects will be funded from cash flow, available cash and credit facilities without any new external funding, except for completion of the cogeneration facility, which we anticipate will be partially funded on a project basis in a wholly-owned subsidiary."

"To ensure we have a reliable source of power for oil sands operations at Algar, we are planning to build a co-generation power (cogen) station at Algar which will also reduce our natural gas requirement for steam generation and reduce greenhouse gas emissions. When needed, the facility would be scalable for future expansion and may provide additional and back-up power for Pod One, currently supplied from the public grid. Surplus power from the cogen would also be sold into the public grid. The economics of the $30 million cogen project are considered favorable. Discussions are currently proceeding to secure separate funding for this project, which is anticipated to be owned by a wholly-owned subsidiary."

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