OIlsands Quest Inc. (BQI)

[bitumen69]

SUBJECT: Our Top Pick CLL-T Worth over $276.share

Connacher Oil and Gas Is Gettin the Attention of U.S. Analyst's
Post Again today due to popular demand...Most read Post on Stockhouse Yesterday Over 1100 Times. CLL.ZF.PK for U.S. Investors

The World's Hottest Oil Play.... New Buy from Wealth Daily
December 21, 2005 CLL-T closed $3.91 per share.

Dear Wealth Daily Reader,
At current crude prices these reserves would be worth over $25.7 billion!!! Or over $276 per share.

For years I've been telling investors about the opportunities in energy. Whether it was coalbed methane, natural gas or oil, I've been playing them all with huge success.

I launched the Pure Energy Report, an investment service dedicated to energy stocks. I launched this new service because I knew that energy was going to be one of the hottest markets ever.

In March of this year, I recommended two companies with significant exposure to the Canadian oil sands region.

For the longest time, Alberta, home to the oil sands, was neglected as a potential energy play because the cheap price of oil made tar sand production economically infeasible. That has changed. It has changed forever

I want to recommend Connacher in Wealth Daily as a way of getting you access to one of the most lucrative oil regions in the world.

It's still early. Investing in the Canadian oil sands today is like investing in Saudi Arabia in 1960.

Canadian oil sands stocks are going to run long and hard for the next 10 to 15 years. The gains will simply blow you away. You don't want to miss out.

Below is my report on Connacher. Please take the time to read it. It'll make you quite a bit of money
"In Light of High Oil Prices, Sky Scrapers Become the Next Power Generating Systems"

Breaking News:
"Washington's Energy Department announced that oil prices will remain well above $50 a barrel for years to come, resulting in a greater shift towards more fuel efficient cars and alternative energy sources" - December 12, 2005, Associated Press.


Buy Connacher at Current Level

Connacher is a Calgary-based oil and natural gas exploration and production company.

The Company's principal asset is a 100 percent interest in 107 sections of oil sands leases at its Great Divide oil sands project near Fort McMurray, Alberta.

Now, for people who are in the know about oil sands, Alberta is the Park Place and Boardwalk of oil sands property. And Connacher's oil sands sections cover 68,480 acres. That's twice the size of San Francisco!

Connacher also maintains conventional production at Battrum, Tompkins, and Steelman, Saskatchewan. The Company also owns 35 percent of and manages Petrolifera Petroleum Limited, which has interests in Argentina and Peru.

Now before you read the next sentence, I think you should focus your eyes. Okay. Are you ready?

As it stands now, Connacher controls recoverable reserves of 311 million barrels of oil!

These reserves have a current value of over $18.6 Billion dollars! Yeah, that's Billion with a "B".

Connacher's reserves equates to about 3.34 barrels per share or, at $60 per barrel for oil, $200 per share!

But there's more.

Connacher just signed a monster deal to acquire another Alberta-based company that's going to take their production to a whole new level.

But first, let me tell you more about Connacher's strategic operations.


Operations

Canadian Operations

Like I said, Connacher has four interests in Canada. These interests are located in northeast Alberta and southern Saskatchewan.

Connacher's principal Canadian asset is its Great Divide oil sands project, 50 miles southwest of Fort McMurray. The company has been exploring this lease since 2004.

And based on the results of this exploration, Connacher expects the Great Divide Oil Sands Project to produce 10,000 barrels of bitumen per day for approximately 25 years!

Just at today's oil prices, Connacher's gross production value would be worth $600,000 a day!

The further development of the Great Divide oil sands project will incorporate multi-well production pads and horizontal wells, with centralized steam generation, bitumen treating and produced water recycling facilities.

The Company hopes to proceed with the construction of this project in early 2006, following regulatory approvals.

Connacher estimates the Great Divide project area contains up to 180 million barrels of bitumen!!!

That means, with current prices, this reserve is worth $10.8 Billion.

Connacher plans to use the Steam Assisted Gravity Drainage (SAGD) process to produce bitumen.

There are at least nine other projects in the province producing bitumen from the McMurray formation using this same SAGD process.

SAGD typically involves drilling a pair of directional wells which are horizontal for 600 to 800 meters at the base of the reservoir.

The production well is drilled near the base of the reservoir and the injector is drilled five meters above it.

Steam is continuously injected through the upper well bore into the reservoir and a steam chamber is formed to heat the formation and the bitumen.

The heated bitumen drains into the lower horizontal well and is produced to the surface.

Connacher is now in the process of finalizing the conceptual plant designs and expects to open a new facility in early 2006.

On top of the Great Divide oil sands project, Connacher also maintains conventional oil production at Battrum, Tompkins and Steelman, Saskatchewan.

Check them out:

Battrum

* Core production of 825 bbl/d
* Multi-well drilling program based on 3D seismic results - yielded 50% production growth in 2005 year-to-date
* Growth potential in the area
* Possible candidate for EOR (ASP flood)

Tompkins

* Large contiguous land spread
* Sensitive ecosystem
* Oil and natural gas in Upper Shaunavon
* Significant Working Interest of 60 to 100 percent

Steelman

* Light oil
* Undrilled spacing units
* Verticals could set up further horizontals
* Waterflood possibilities under review

The Canadian interests mentioned above would produce enough oil for any company to remain profitable for many years.

But for Connacher, just being profitable isn't enough. Connacher wants to swing for the fences. That's why they've also acquired some South American interests as well.

South American Operations

Connacher created Petrolifera Petroleum Limited to hold foreign assets.

Petrolifera holds blocks in Argentina and two licenses in Peru.

Argentina

* 100 percent owned and operated
* Light oil and natural gas
* Only one exploratory well in 30 years
* On trend with major fields
* Recent 3D seismic over the blocks; nine drillable prospects

December 16, 2005 PDP Closed at $8.05
Petrolifera's RN.PM.x-1002 well flows 2,340 bbl/d on test
Visit Connacher Oil and Gas Limited
http://www.connacheroil.com


Peru
Petrolifera received a license over block 106 on July 12, 2005, and a license over block 107 on September 1, 2005. Connacher owns 35 percent of Petrolifera.

Maranon Block 106

* Comprises 8000 km2 (1,977,500 acres) - oil
* Located on basin hingeline along which most oil has been found
* Oil pipeline on Block
* Surrounds the Corrientes Field >200 MMBO(1)
* Area has excellent reservoirs and no seal problems
* Many of the reservoirs filled to spill point
* Block has access to good hydrocarbon charge
* Numerous prospects and leads in the Cretaceous
* Deep potential within the Paleozoic section - untested

Ucayali Block 107

* Large Block of approximately 13,000 km² (3,205,000 acres) - natural gas, condensate, oil
* On trend with giant Camisea Field
* Existing seismic indicates Camisea-like structures on Block
* Undrilled, large mapped surface anticlines identified, may contain giant accumulations
* Rashaya Norte - an Aguaytia Field (440 BCF, 20 MMBC(1)) look-alike
* Giant reserve and company-maker potential

Ok, now that you know a little more about Connacher's current operations, let me tell you about Connacher's new baby, Luke Energy.


Luke Energy

Luke Energy is another Calgary-based oil and natural gas exploration and production company.

Luke's operations are located in Alberta. Let me quickly run through some of the highlights from each interest.

Marten Creek

* Production ~ 15 mmcfpd (2,500 boepd)
* Multi-zone shallow gas area; 1 to 2 bcf/section
* Land - 100% in 41,600 acres
* 12.5% to 70% in 5,120 acres
* Additional drilling program, Q1, 2006 Seal/Clear Prairie
* New gas discovery at Seal
* Cretaceous gas potential; depth 1,200 - 2,000 ft.
* Land - Seal - 88% in 6,400 acres
* Clear Prairie - 100% in 3,840 acres
* Option on 12,032 acres
* New drilling, Q1, 2006

Three Hills/Bashaw

* Production ~ 235 boepd (73% oil)
* Multi-zone - Ostracod & Nisku oil
* Pekisko gas
* Land - 97% in 10,400 acres
* Dev. drilling and waterflood potential, Q4, 2005 Gold Creek/Karr/Latornell
* Cretaceous gas potential; 5,000 - 6,800 ft.
* Land 100% in 5,530 acres
* Additional prospective land
* New drilling in Q4, 2005 and Q1, 2006

Now, on a combined basis, Connacher could immediately have a production base of approximately 3,500 boe/d consisting of approximately 15.7 mmcf/d of natural gas production and approximately 900 bbl/d of oil production.

Recent reserves reports indicate that Luke Energy holds approximately 79.3 million boe, including 69.6 million probable recoverable barrels of bitumen reserves at Connacher's Great Divide Pod One.

Assuming Pod One development is approved and the project comes on stream at its application rate of 10,000 bbl/d and these volumes are combined with the conventional production rate of 3,500 boe/d, a calculated reserve life index of 16 years is indicated.

A further 38.7 million barrels of possible recoverable reserves have also been assigned to Pod One by a recognized independent consultant.

So by my calculations, when Connacher completes its acquisition of Luke Energy, the Company will have 429 million barrels of proved, probable, and possible oil reserves!!!

At current crude prices these reserves would be worth over $25.7 billion!!! Or over $276 per share.

That's not bad for a company that's still trading under four bucks.

Before we wrap this thing up let me tell you about Connacher's management team.

Senior Management

My Pure Energy subscribers know that I carefully scrutinize a company's management team way before I recommend it as a buy.

The fact is, any company run by a group of bozos is destined to go belly up.

Connacher's management is way above par. Here's just a little bit about them.

Richard A. Gusella
President & Chief Executive Officer
Mr. Gusella has been the President, CEO and a director of Connacher since May 2001. Prior thereto, he was the President of Gusella Oil Investments Limited, a private oil and gas corporation, as well as the Chairman & CEO of Carmanah Resources Limited, a public oil and gas company listed on the Toronto Stock Exchange. Mr. Gusella was President and Chief Executive Officer of Sceptre Resources Limited from 1979 to 1991 during which time the company grew from approximately 500 boe/d to 50,000 boe/d. He is a past chairman of IPAC prior to its combination with CPA to form CAPP.

Peter D. Sametz
Executive Vice President & Chief Operating Officer Mr. Sametz has approximately 25 years of experience in the oil industry. He graduated with high distinction as an Engineer from Carleton University in 1979 and has worked with large, intermediate and junior companies, managing up to 40,000 boe/d of production. His industry expertise has been further drawn upon for technical papers, lectures, and domestic and international consulting services.

Richard R. Kines
Vice President, Finance & Chief Financial Officer Mr. Kines holds a C.A. designation and has been with Connacher since 2002. He was appointed Chief Financial Officer in June, 2003. He has over 25 years experience, in public practice, and with various oil and gas and oil service companies.

Timothy J. O'rourke
Vice President, Oil Sands Operations
Mr. O'Rourke has extensive experience in oil and gas operations with a number of companies, including Sceptre Resources Limited and Deer Creek Energy Limited, where he was a founding shareholder prior to joining Connacher in 2002. His experience in conventional production, horizontal drilling and SAGD applications will assist in the timely evaluation and development of the company's Great Divide project.
The obvious conclusion to this story is to buy Connacher with both hands.

As I mentioned before, based on Connacher's proved, probable, and possible oil reserves, after the Company completes its acquisition of Luke Energy, the share price should be worth over $276 per share.

You need to hold a position in a Canadian oil sands company. And this is a good one.

http://www.connacheroil.com/index.html

www.wealthdaily.net
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