Connacher Oil & Gas Ltd CLLZF

RE: Chemicals

[Wellsitter]

The diluent is basically re-cycled. In essence, they add a solvent like diesel to the bitumen to dilute it so it will flow better and then the refining process gives them back the diesel. So you have a constantly re-cycling inventory of diesel (or other diluent). As for the process of removing the water, it is accomplished with a tiny proportion of demulsifier, usually far less than 25 parts per million of chemical added to achieve the desired result. The only substantive difference with oilsand production as compared to conventional, is the amount of sand produced with the emulsion but the sand diminishes fairly rapidly as the sand consolidates and within a year or two becomes a minor issue.