Benj Gallander CONNACHER OIL AND GAS LIMITED CLC-T COMMENT Dec 23, 2014

Has been very negative on this name. Thematically they have incurred a ton of debt to develop oil sands and when you are the marginal cost barrel in the oil sands and financing it with debt, it is a risky business and it didn’t work out for them. Have gone through a process of management change, selling assets, etc. Still have a lot of challenges ahead.

(Market Call Minute.) There’s a very strong possibility this company hits the wall in 2014.

(Market Call Minute) Highly speculative, up on more take-over rumors.

If you own, he would be tempted to liquidate your holdings at the earliest opportunity. Has no idea why the stock price has gone up. Believes they still have over $800 million in debt.

(Market Call Minute) Buy the bonds if you are going to play it. If they skate through you will get a great lift.

A tremendous amount of debt. Company has to tiptoe through some very difficult spots. Costs are very, very high in relation to others.

A very, very complex situation which he tends to avoid. This is one that could skyrocket or could possibly go bankrupt at some point. When there is not enough clarity, he tends to stay away.

(Market Call Minute) Absolute disaster building oil sands facility with debt.

The principal problem is the debt and they are poorly capitalized. Also, price of oil has come under considerable pressure. They are developing long-lived assets, which mean there is really not much probability of bringing forward their cash flows into the here and now.