bbq,

Good points as always.

You may also add to your consideration the management statement :

...future cash flow is dependent on actual results of operations which are subject to a number of risks and uncertainties and may differ from current expectations.

As the history tell us the actual results presented in quarterly reports are the only source of information about successes or failures of presented expectations.

The updates and projection or articles in the paper are just to get the excitement going (as it should be).

As to the other question...WTI at $70/bbl ($47 to $48/bbl of bitumen) will not generate sufficient cash flow to fund the capital expenditure to pay for future POD3 or 4. The WTI has to go much higher to pay for the expenditure without additional dilution.Will the WTI go higher? probably will.

Remember that at current production level interest expenses are about $35/bbl. Then you have operational cost, transport and royalties, maintenance Capex (pumps + drilling) and overhead expenses for the total cost of $55 to $60/bbl of bitumen. This cost will drop down in 2011 to about $40 to $45/bbl of bitumen when Algar is successful.

The disclaimer to the above is the exchange rate, heavy differential, NG prices.