AOS submitted today 4500bbl/d SAGD pilot project application. If approved AOS will need major capital injection, sine their line of credit is only $10 million. I do not think CLL is in the position to inject the new capital to help AOS.

IMO CLL is looking for partner(s) with deep packet with can inject $500 million to 1 billion for the expansion. Without new capital 40,000 bbl/d production by 2015 is not possible.

What may by good for the CLL as a corporation may not necessary be good for the shareholders, since the NAVPS will be diluted 40 to 50%.

On the positive side , the partnership can bring the financial stability, credit rating improvement and more credibility.