- Dick Gusella stated that to reach 10,000 bbl/d of bitumen production we need an SOR of 2.7 at POD1

- He stated that if the SOR is reduced to 2.2 with the use of solvents POD 1 could produce 12,000 bbl/d of bitumen

- Dick Gusella stated that if Algar's SOR is reduced to 2.5 it will produce 12,000 bbl/d of bitumen.

- He stated that if Algar's SOR is reduced to 2.0 it will produce 15,000 bbl/d of bitumen.

- He later added that the difference between an SOR of 3 and an SOR of 2.7 at POD 1 is 1,000 bbl/d

See, 27,000 bbl/b steam is leading to our bottleneck. Divide that number by the effective SOR and we get our production. Divide it by about 3.2 in 2009 and get about 8500 bbl/d bitumen. Divide it by 3.0 SOR and you get 9,000 bbl/d bitumen. Divide it by 2.7 and get you get 10,000, a difference of 1000 bbl/d bitumen between 3.0 and 2.7.

The information above shows that Algar is set up slightly higher at the moment, at 30,000/day steam, compared to 27,000 at GD.

The use of electric submersibles will increase production but there will be a draw of electrical power instead of using more energy in the steam approach. If you can't add any more steam, because you're capped by the design in that respect, but your steam is not quite sufficient to pull out your target bitumen, you use a different source of energy to get that extra bitumen to bring you up to your target production. It will be good that the co-gen plant will be available in the fall.

I think this is very good information. This is the first time that I now feel that I understand the reason for production shortfalls better. I'm glad that this all came out in the Conference call.