Just a couple of points on what DG said during the conference call.

WTI under $US65

My impression was that DG provided a lengthy explanation of Q1-Q3 2008 actual, and 2009 planned Capex. He then concluded by saying that Connacher has all the financing for the Q4/2008 +2009 CAPEX (including working capital , Line of Credit and Operational Cash Flow)(as explained by Jurek and excluding $ for Cogen plant that would be negotiated separately)

He concluded by saying that Connacher had other sources of funding available, in the event that WTI oil price remained below $US65 for a prolonged period of time, He then went on to explain examples of possible sources of funds that could be used in the event that WTI price remained below $US65 for a prolonged time.

Although he didn't say it specifically, I got the impression that DG doesn't expect WTI price to remain below $US65 for long, but he had that base covered even if it did stay low.

Capitalized Values

I hope everyone realizes what DG means when he talks about capitalizing things like pre-production costs of Algar.

My understanding is that rather than show initial production costs and revenue at a loss during the steaming, testing and ramp-up period, these expenses and early revenues are combined and the net loss is Capitalized as an asset. In other words, until the pod is deemed to have achieved Commerciality, no revenues or expenses are recorded. The net effect, (if I understand it correctly), is that these capitalized costs are added to the actual cost of plant construction and are shown on the books as assets

Lets hope oil gets back up to $US 70-80 soon and then we can breathe a little easier.

XBB

(Corrections welcome)