The upcoming financing is necessary to get Algar built, plain and simple. The combination of debt & equity was probably required to make it marketable to the investment community.

I for one, am greatly relieved that management has taken this step to get CLL back on track to producing 20,000 bpd by late 2010. Without this move at this time, I fear that the company's options for survival (let alone expansion) were dwindling with each passing month. I feel the cost of dilution (say 20%) is well worth guaranteeing the company's survival.

Although there is a market sell-off as a result of the impending dilution I'm not sure there was any alternative. Once the financing is in place and Algar is re-instated I think it clears the decks for a series of positive PR's going forth.