Hi oilman:

I listened to the conference call for Q2 and it was interesting as management stated that normally there is one power disruption a month at the Great Divide (usually due to inclement weather) but Connacher experienced as many as six power outages in one month. It was also stated that the Great Divide plant is the last plant online in the area that the local power company supplies. The local power company will build a substation nearby Great Divide in 2011 to try to alleviate the power disruptions. Apparently Algar has been drawing little power to date compared to the Great Divide therefore it hasn't suffered very much from the power outages. It was stated that the completion of the cogeneration plant will provide reliable power to the Great Divide plant and Algar plant when it is completed in September 2010. It was stated that the co-generation plant will not be completed until September due to government permitting delays.

As far as the ESP's are concerned, 3 more will be installed this month at Great Divide to bring the total being operated to 17. Two companies make the high temperature ESP's that are being installed and each company has a different way of installing the ESP's. There have been long delays acquiring the new pumps. Connacher is having the companies that supply the ESP's install them now as some of the original ESP's have burned out due to what appears to be installation problems when they were originally installed two years ago. It was also stated by management that the original ESP's can only have the power turned off and reinstated to them X number of times and then the pumps fail. There are also cavity drainage pumps that are also installed in the north well pairs at the Great Divide and I'm not sure of some of these have failed as well. As we all know by now, well pairs must be shut down to install the ESP's so yes days of production would have been lost due to installing new pumps. Nobody mentioned how many days of production were lost when exisiting ESP's that have been running for two years burned out due to improper installation or power surges. Coincidentally, while these burned out pumps were being replaced, management stated that they decided to do another turnaround at the Great Divide which I assume means that they reamed out some of the wellpairs to improve their circulation, so this would also have taken other wellpairs offline while the work was being done. It was most likely a good idea to do the turnaround at the Great Divide while the new high temperatiure ESP's were being installed rather than to wait until the fall to do the turnaround, once presumably the well pairs were all up and running again and the bbl/day of bitumen numbers were stabolized as a turnaround at that time would screw up the production numbers further.

So the good news is that the turnaround has been completed at the Great Divide for 2010. A number of the old low temperature ESP's have burned out and been replaced with high temperature ESP's. Connacher is having the companies that they get the ESP's from install them properly. Connacher has been able to get new high temperature ESP's which are hard to come by with waiting times as much as a year as every SAGD company wants them. There are more suppliers of high temperature ESP's entering the market Pete Sametz stated so it should be easier to get them in the future. By the end of September 17 of the wellpairs at the great divide will have ESP's installed and the cogeneration plant will be completed. The SOR is 2.9 currently on all of the well pairs running on ESP's.

The Q2 conference call will be available on the Connacher website now so you can listen and see if there is any more information about the pumps and outages.

http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3057560

Cheers; Scott