rebels

I know the genius accountant niece was a joke. I am not that serious as it sounds.

About the royalties- this is the link to the new table which may help you:

http://www.energy.gov.ab.ca/Org/pdfs...

Starting from 2009 everybody pays minimum rate which at today WTI price is 6%($12M for POD1). When you look at the payout definition you will find out that in 2011/12 CLL will jump to full royalty rate at about 35%.

With the POD1 production of 10,000bbl/d in 2011/12 the royalties and income tax on net revenue will be about $70M.This does not include the interest payments on the NOTES and the principal which will have to be paid one way or another. People who are hoping for "mountains of cash " coming to CLL bank acct may have to reexamine their DD.

This was all avoidable if CLL would not purchase the LUCK and invest the $220M in POD1 instead. CLL share price would be $6 and POD2 could be finance by cash flow and small 40M new equity issue. This was my point in the previous post. Sorry i was not so clear on this one.