Connacher Oil & Gas Ltd CLLZF

RE: Through the JV Looking Glass

[longnose2]

Rock, your development cost estimates for the 24,000 barrels per day Great Divide JV are way over-estimated at  $950 million.

If the  Project is completed as one 24,000 bbl/d module, the initial  capital intensity of approximately $25,000 per flowing barrel of bitumen has been estimated. Thats less than $300 million .

This makes the expansion even more attractive and means that CLL may be able to retain majority owner ship of it , which is how they state this initiative...the JV would have minority ownership.

The upfront cash of $500 million looks to be quite reasonable.