Why Connacher Is Pulling Back Today

It's just profit taking. The company started steam injection at Great Divide Pod One. See press release at: http://www.connacheroil.com/documents/news2007/CLL-2007-09-17.pdf

This is a milestone for the company -- it's a fully functioning oil sands producer now -- so, some people are grabbing gains. Oh, how I think they'll rue getting out now.

UPDATE: It's NOT just profit taking. What I missed, because I was putting out an order issue for Red-Hot Resources, is that the province of Alberta is raising taxes ...

	Bill O'Connor
	Watch Out for Your Canadian Energy Holdings
	9/19/2007 10:24 AM EDT

The province of Alberta, where most of Canada's energy comes from, has announced plans to increase the royalties(i.e., taxes) on oil and natural gas produced in the province. Similar to our politicians in the U.S., Alberta is seeking ways to extract more money out of energy sector. The politicians there are also in a rush to chop the head off the goose that lays the golden eggs.

This will be painful for all those big oil sands producers. Big guys like Suncor (SU) are down 4% today, and I suspect that, if this tax is enacted, we could see all the big oil sands producers drop even more. The large energy trust Canadian Oil Sands (COSWF) is down 4% on news.

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