Our Goals Are Clear...

• Optimize current bitumen production at Pod One
• Finish Algar on-time and on-budget
• More than double 2009 bitumen production in 2011
• Reach 50,000 bbl/d of bitumen production by end of 2015
• Expand in the space – increase reserves and resources

Achieving goals leads to our ultimate objective of delivering shareholder value.
Refer to forward-looking information disclaimer.

(answer last updated November 12, 2009)

Connacher owns approximately 20 percent of the outstanding shares and approximately 24 percent of outstanding share purchase warrants of Petrolifera Petroleum Limited, a publicly-traded company listed on the TSX under the symbol PDP. Connacher was responsible for Petrolifera’s creation and initial financing and continues to provide some administrative services to Petrolifera.

Petrolifera owns crude oil and natural gas production and reserves and conducts exploration and development on its extensive acreage holdings in Argentina, Peru and Colombia in South America. Connacher’s investment in Petrolifera benefits from the following:

• Petrolifera has one of the best exploration land portfolios in South America
• Proven technical expertise in the areas of operations
• Highly undervalued in relation to net asset value and company potential

(answer last updated March 31, 2010)

Our involvement in conventional production and refining was chosen to mitigate key risks inherent in SAGD oil sands operations, while enabling higher realizations from a heavy crude oil barrel than can be achieved by a pure-bitumen operator. It has resulted in what we call an “integrated approach” to developing our oil sands properties. Our production from the oil sands uses SAGD technology, which we recognized as the most appropriate approach, especially for deposits such as we have, located at depths of up to approximately 1,500 feet subsurface. SAGD involves burning natural gas to produce steam, with the cost of natural gas being a major operating cost component in our oil sands operations. Given the historical volatility of natural gas prices, we addressed this risk by securing and continuing to expand our natural gas reserves and production, with a view to hedging our exposure to natural gas price volatility. While this approach was originally adopted to provide a hedge, particularly against high natural gas prices, being a conventional producer simultaneously provides Connacher with operating income, cash flow and credit capacity.

Bitumen is a low quality heavy crude oil that sells at a discount to WTI. Our heavy oil refinery in Great Falls, Montana is able to recapture much of this discount in its margins, while earning a spread to WTI through the sale of its refined products; gasoline, diesel, jet fuel and asphalt. In addition, the refinery is a source of quality diluent for our oil sands operations, further “closing the loop” by minimizing revenue leakage on a consolidated basis.

For the fourth quarter of 2009, Connacher’s average daily production rate was 8,690 boe/d. For the most up-to-date information on production, visit Connacher’s latest news releases and presentation.

(answer last updated March 31, 2010)

Barring anything unforeseen weather-wise over the winter months, we believe that we will complete Algar in April 2010. Thereafter, we will require approximately 30 days to commission the plant, approximately 90 more days to steam the SAGD well pairs and associated reservoir and then we anticipate starting ramp up of bitumen production towards plant capacity, which we hope to realize in early or mid 2011.

Refer to forward-looking information disclaimer.

(answer last updated March 31, 2010)

Connacher’s independent reservoir engineers are GLJ Petroleum Consultants Ltd. of Calgary, Alberta.

(answer last updated November 12, 2009)

Connacher will release Q1 2010 results on May 11, 2010. For an update on exact timing, please consult our online calendar.

(answer last updated March 31, 2010)

As at December 31, 2009, the company’s total debt, as reflected in its financial statements, was $876 million and it had $257 million of cash so net debt was $619 million. Connacher’s strategy is to pre-fund its major projects to ensure liquidity to complete its capital plans.

We believe our capital structure is appropriate for the anticipated completion of Algar and ramp-up of total bitumen production approaching 18,000 to 20,000 bbl/d in 2011. Our first maturity is our $100 million convertible debentures in June 2012. The balance of our long-term debt matures in 2014 and 2015.

(answer last updated March 31, 2010)

Diluted bitumen (“dilbit”), crude oil and natural gas are generally sold on month-to-month sales contracts negotiated with major Canadian or U.S. marketers, refiners or other end users, at either spot reference prices or at prices subject to commodity contracts based on WTI for crude oil and AECO for natural gas. As a means of managing the risk of commodity price volatility, especially with debt on our balance sheet and during periods of high capital outlays, Connacher enters into financial derivative commodity price-hedging contracts from time to time.

At March 31, 2010, Connacher had the following hedging contracts in place:

• Calendar year 2010 - 2,500 bbl/d - WTI US$78.00/bbl;
• February 1, 2010 − April 30, 2010 − 2,500 bbl/d − WTI US$79.02/bbl;
• May 1, 2010 – December 31, 2010 – 2,500 bbl/d – minimum of US$75.00/bbl and maximum of US$95.00/bbl;
• April, 2010 – September 30, 2010 – 2,000 bbl/d of gasoline sales at US$9.00/bbl premium to WTI.

(answer last updated March 31, 2010)

Connacher does not pay a dividend at this time. Cash flow and capital is reinvested for growth.

(answer last updated November 12, 2009)

We anticipate average bitumen production of 8,555 bbl/d from Pod One and 1,685 bbl/d from Algar (as it will only contribute bitumen production in the fourth quarter), and 2,424 boe/d of conventional production, for a total anticipated to exceed 12,600 boe/d.
Refer to forward-looking information disclaimer.

(answer last updated March 31, 2010)

The company’s 2010 capital budget has been set at $256 million, broken out as follows:

Refer to forward-looking information disclaimer.

(answer last updated March 31, 2010)

For 2010 planning purposes, Connacher has used average West Texas Intermediate (WTI) oil price of US$75.40/bbl, a light/heavy differential of US$10.90/bbl and a quality charge of $5.00/bbl, resulting in a dilbit price of $62.70/bbl. Connacher also assumes a foreign exchange rate of $1.05 = US$1.00.
Refer to forward-looking information disclaimer.

(answer last updated March 31, 2010)

Connacher anticipates adjusted EBITDA of $131 million in 2010.  Assumptions underlying the forecast can be found on pages 49 and 50 of Connacher’s Spring 2010 Corporate Presentation.
Refer to forward-looking information and Non-GAAP Financial Measures disclaimers.

(answer last updated March 31, 2010)