oilman; You stated:

"Primarily, I believe this is just protection against overages on Algar." Connacher's most recent presentation on page 18 shows that the capital budget has set aside $15 million dollars of existing cash already to account for if there are any over runs at Algar due to weather or other contingencies Management previously stated that the $50 million credit facility was needed as a line of credit that it has on hand as Connacher uses letters of credit to buy big items or more specifically crude oil for the refinery so that the suppliers will see that Connacher has the money to pay for the item. It was explained that the refinery signs monthly contracts for all of the raw crude oil that it purchases that it needs which can be in the millions of dollars each month so the supplers who it buys these things from need proof the letters of credit are guaranteed. The refinery also signs letters of credit for chemicals and equipment that the refinery needs. This was the main intended purpose of the $50 million revolving credit facility. It is to facilitate the company's monthly transactions. It is apparently a very big deal as indicated by Laura Lau when she was on BNN she stated something to the effect that some prospective institutional buyers were waiting for the revolving credit facility to be in place, as the final corner stone so to speak before they invested in Connacher. So it is quite important to the institutionals and bankers that the revolving credit facility be in place going forward. I suppose it could be used if an additional contingency popped up during Algar's building .

Best Wishes; Scott