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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: Price of Bitumen? (Sharky and Brian)

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Jan 13, 2009 10:16AM

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Jan 14, 2009 02:13AM

Hi Brian,

1. In Canada, many elected politicians depend on advice from government officials. Over the years , I have been surprised by the fairly large number. So I agree with your comments.

2. Already there have been a number of companies in the oil sands that are in trouble financially. In some cases, this was before the major financial crisis became more apparent. Also, there is no doubt that the implimentation of the royalty recommendations is negatively affecting the financial climate in Alberta.

3. Politically, it appears that the Federal Liberals and the Federal NDP parties would like to see the oil sands fail. This is probably because Alberta is Federally Conservative in every riding except one.

4. With regard to the oil sands, I think the Liberals and NDP are against them because it's politically acceptible to the supporters of those 2 parties. Likewise, both Federal and Provincial Conservatives have shown support for Alberta oil and gas as well as any industrial activity in Canada, etc.

Because of the financial crisis, there will be a slow down in how fast the oil sands are developed. However, with regard to Connacher, it will be important that we get a good solid oil price, so that Connacher can build Algar and have 2 pods producing.

At that point, the cash flow will help in paying the bills so that Pod 3 can be built when the appropriate amount of cash is available.

I hope that answers some of your questions and that everything is going well for you and the family in Ohio.

Best Wishes,

Lynn

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