In terms of Connacher's development plans outlined in the 2008 Annual Report everyone needs to keep in mind that Connacher's natural gas properties cannot be drilled until this winter at the earliest (December 2009) and connected to the pipeline. They are in areas where the ground needs to be frozen to start the drilling as these areas are impassible to heavy equipment at any other time of the year. The same goes for drilling the 15 well pairs for Algar. You are looking at December 2009 until the rigs can get in to drill them. About the only property Connacher owns that can be drilled soon would be the medium gravity oil pool at Battrum in Saskatchewan, unless Connacher has picked up or is in the process of acquiring new year round drillable properties through takeovers, farmins or acquiring new land at auction (which was mentioned in the Report). Connacher I would expect will do a lot of drilling in the coming winter not only for the reasons that I have just mentioned but also because the Alberta govenrment's new tax incentive to drill will help Connacher. Also, there are a lot of drilling rigs sitting around idle and Connacher will be able to get rigs this coming winter for a pittance.

Personally, I think that if the price of oil continues on its current course I see Connacher resuming Algar in the fall (the same time that they started POD 1 two years ago). That is my bet.

Best Wishes; Scott