Connacher Oil & Gas Ltd CLLZF

RE: More Dilution coming ......PUNJABI

[METACOMET]

I was a little disappointed with the price of the offering also. My hunch is that Gusella is trying to buy some time with this placement and assure their ability to maintain the drilling program as well as fund some long lead items for POD 2. It appears as though he is taking some initial defensive steps in dealing with the houses that have whipsawed this issue for months. I like the poison pill here because I am of the opinion there will be a substantial increase in certified reserves announced soon. I feel that this is even more key to driving market cap here than initiating production on POD 1. That is a certainty that has been discounted into the current price at a fraction of its value. Assuming any level of homogeniety in the channel they are in, I suspect that the drilling programs on the full 90,000 acres will ultimately identify several billions of barrels of OOIP. Even a significant fraction of that will render this PP insignificant in the long run. Not to mention that any PP's after a resouce upgrad will undoutedly be at a higher share price and result in less dilution going forward.