clamlinguine

"Last I heard, these royalty numbers were for companys with upgraders, perhaps things have changed since the review came out"

Yes they change. New Royalties rates were adopted By Alberta Government in NOV/2007.See link to new rate table below. In JAN/2008 small modification was added for deep well NG producers as well as Suncore agree to end the "Royalties holiday" by 2010. Projects with no upgraders will based the Gross revenue on the price of bitumen.

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

Are you sure POD2 expenses cant be written off against POD1 revenue, again I thought this was yet to be determined. Great Divides 6 PODS are one project, no?

Each project has it`s own identity as per AEB approval and will have individual pre and post payout calculations.

If your right, its lucky for us by 2011 we will have 200 million of cash flow from POD 1 in the bank, and an extra 200 million of cash flow per year on line from POD 2. You didn't mention that.

Read my previous posts. Gross revenue will be about $210M(60x350x10,000). Cash which you can take to the bank will be in $40M range Subject to the necessary CAPEX to install new wells to compensate for decrease of production). I am sure you know the difference between gross revenue, cash flow, net cash flow and net earnings.

How come so negative?

This is not about being negative, positive, realistic or overly optimistic. This is about costs related with the production including royalties and taxes.

For some it will be very positive since there won`t be very many SAGD projects in Alberta making money in 2010 . Some investors will not care about numbers at all and count on HYPE or takeover to bring the SP up. Some will look at the numbers and adjust their target prices accordingly.

One think I am certain about : nothing which is said on this board will efect the CLL SP.