It is not my intent to be unnecessarily negative however, there are elements which could put a damper on Algar and the entirety of Connacher. Some of which are controllable and others which involve macro economic issues well beyond the control and even influence of Connacher. Some of the issues involve:

1. Miscalculations on the part of Connacher. These could involve errors in the placement or depth of producing well pars for instance. Others, including some large sophisticated companies have had problems with this. There are certain to be many additional execution risks which I and possibly others, are not even aware.

2. Macro economic issues such as a collapse in demand predicated on a double dip economic event impacting the entire world wealth and income structure. Though at the moment, inflation seems to be winning, the ultimate resoution of the macro economic picture is far from yet settled. A depressionary deflation potential is still a realistic scenario. Under such a scenario, Connacher due to its debt significantly affecting cash flow in a depressionary event, would likely be catastrophic to a company in Connachers position. Such a scenario in fact gains credence as Oil continues to move higher thus placing ever greater pressure on the overall economies of the world. Remember, high oil prices were the trigger event for the event of 13 months ago. We still have very high unemployment in the western heavily oil consuming oil nations of North America and Europe. And Connacher has no influence over the potential macro economic events.

Though I am not suggesting the future is completely gloomy, there are still macro events as well as Connacher potentialities which increase the risk level for a small producer in the still relative high cost structure of the Oil Sands. There in my mind, is no question that the "sands" will be ultimately successful The only question? Will it be on the second go round or a subsequent one?

Brian