Remember that if you include the projected CAPEX CLL have no free cash flow which they can use for the expansions or new projects like pipeline.

They have $230 millions cash on hand (for Algar) which cost CLL about 11% (after dollar hedge they did few months ago). Using the existing credit line is the only option but why would prudent management invest expensive cash in the business which may have a 0 to 10 % profit margin.

The first major free cash flow will be generated at the end of 2010 when the ALgar will start to produce any minigfull amont of oil.

Until then the CLL shares are stuck in the $3 to $5 range.