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Connacher's SAGD Projects on track
Feb '08
Connacher Oil and Gas Limited announces that it continues to hit and exceed milestones for its projects this winter. The current financial market turmoil is not affecting Connacher's progress or business activities.

At Great Divide, Connacher's SAGD project continues to meet and exceed milestones on its ramp up to 10,000 barrels per day of bitumen.

For the month of January 2008, the company is anticipating sales of over 40,000 barrels of raw bitumen, which are approximately double the originally anticipated volumes for the month.

Production of raw bitumen has recently exceeded 2,000 barrels per day. Seven well pairs have now been "flipped over" to SAGD production and consistent with the ramp up process, are at various stages of contribution to total volumes as individual wells also undergo a ramp up process.

Connacher's operating staff has been handling the increased oil treating loads in an effective manner. Well pairs are converted from circulation phase to SAGD production in a sequential disciplined manner, as reservoir temperature and pressure constraints are met.

The other components of the surface facilities continue to perform very well, particularly the produced water treating system, utilizing evaporator technology and the boiler systems.

As the bitumen throughput continues to ramp up to full capacity and all the limits of the process are maximized, there will be additional learning. However, the performance to date is indicative of good design and the competence of the Great Divide operating staff.

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