Scott,

Excellent post (as usually). Hangingstone (Jacos) is on the same formation as CLL oilsand lessee. The assumption is that both bitumen reservoirs will have the same characteristics.

SOR

Hangingstone SOR stabilized at 3.2 to 3.4 after 6 years of production. Encana Foster Creek (2.3 to 2.5) is consider as a leader for setting the standard for SAGD economics (much richer bitumen formation). 2C may add his expert opinion on this subject.

About NG.

POD1 is using the NG supplied by local utility provider ($6 to $7 per mcf based on SOR and cost provided by CLL). CLL NG production from LUKE is now sold below total cost (Alberta gas prices ,NGX are moving under $2 CND). LUKE production dropped over 30% since purchase by CLL. It is all about money.

Scott, what do you think? Were did $600M of oilsand loan + $100M convertible and more then $200M equity issue (all received before 2009 and does not include the resent financing) went ? Good project for the long weekend. :)