Looking at today's volume, our S&P/TSX delisting appears to be complete or near completion - CLL enters the TSX abyss.

I've strongly supported management in the past, but now question their resolve.

Here's a few items I can't seem to explain away that easily:

1) The $200M credit facility was presented as the best deal we could get under the then current conditions. We were charged above average fees and given a higher than average interest rate to enable a "security-blanket" for a very small window of time to start-up Algar. It's clear now that CLL management was so excited to get the credit facility that they missed protecting CLL in the untimely event that Algar is delayed (for whatever reason, market conditions or otherwise). Now CLL joins the line of other borrower's in this market - a serious setback. (note that the $150M + $50M credit facility were terminated subsequent Dec 31/08 year end...)

2) In the middle of the Dec/08 nightmare of shutting down production and restarting production, as well as "discussions going nowhere" with the $200M credit facility bankers, CLL decides to buy, at market conditions, $8M worth of their Senior Notes ??? Why?? In a time of cashflow crisis (negative cashflow for the qtr), CLL management wants to spend $8M to show a $2.8M realized gain??

(p.52 of March 19th press release, under Senior Notes)

In the fourth quarter of 2008, the company repurchased US $8 million face value of Second Lien Senior Notes in the market at a discount, cancelled the notes, and realized a gain of $2.8 million.

3) As my last hope(before further share dilution) lie in higher commodity prices, I note on p.60, note #18 that we've sold some production (how could it just be "notional" - it's half!) for a fixed price.....looking at the margins this is not enough this year with interest payments to follow..

Subsequent to the year end Connacher entered into WTI crude hedges for prices of US $46.00/bbl and US $49.50/bbl on a notional volume of 5,000 barrels of oil per day for a significant portion of 2009.

I've given DG more benefit than doubt in the past, but the $200M credit facility and the repurchasing of $8M senior notes in Dec/08 were very serious errors (IMHO).

We now enter the abyss - where CLL cashflow is very tight, and we line up with others for available credit ...... as a company CLL was past this point...now we need to back track and regroup.....

Good lUck,

Booster