Connacher Oil & Gas Ltd CLLZF

This says it all!!! $$$ 100 Million for pod 1 alon

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Our economics were respectable in this startup phase when operating

costs are spread over smaller volumes and diluent costs were high. In March 2008, we received an average dilbit sales price of

$77.24/bbl, which after deduction of the cost of diluent, operating costs and transportation charges, translates into a calculated

wellhead netback for bitumen of approximately $53.01 per barrel. We anticipate this can further improve as economies of full

scale operation at design capacity are achieved, with fixed costs spread over a broader production base. Even with these costs,

volumes of 10,000 bbl/d, if and when achieved, would translate into annualized net operating income exceeding $100 million

for Pod One alone. This would be supplemented by our anticipated conventional and refining operating income.