Suncors long-term debt (LTD) is approx 6%. Admittedly their financial ratios are in far better shape than CLL's. However with an SOR of 3.0 (IE 19,000 bpd) CLL's financial ratios would move much closer to Suncor's providing them with the wherewithal to negotiate better terms.

The 8 wells CLL currently have on ESPs are already averageing an SOR of 3.0 (slide 23 of their May presentation). And I believe only some of these ESPs are the more efficient high temperature ones. They have plans to convert the remaining 9 wells to hi-temp ESPs this year, so I don't ssee why they can't acheive an SOR of 3.0 or better by the end of the year. I'm sure the ALgar budget includes hi-temp ESPs for all wells as well.

To me its very simple what CLL has to do. Drive their SOR down to 3.0 and below. The production volumes, operating costs and EBITDA will automatically take care of themselves.