Guys,

The following statements are I guess meant to impress everyone but to be quite frank they scare the hell out of me.

“We continue to anticipate surpassing our goal of 50,000 bbl/d of bitumen production from the Great Divide main lease block by 2015.”

“The cost of the Algar proposed expansion from 10,000 bbl/d of bitumen to 34,000 bbl/d of bitumen was estimated to be around $600 million dollars.”

Also there seems to be no more mention of the pipeline. Why is this? Surely they don’t intend to carry on trucking. OK 6,000 to 10,000 but ramping up to the intended 44,000 and then transport by truck? Seems very questionable to me.

If they were issuing statements something like:

“Our priority is to ramp up production with curbs on our capital expenditure for the foreseeable future until we have a consistent, sufficiently large cash flow where can pay down our debt to more reasonable levels. The high levels of corporate and financial risk the company is currently running would then be reduced and our borrowing would not be subject to the huge premium rates we are currently running. Unfortunately this will of course delay the expansion till some time in the future but will ensure our existing shareholders are not faced with further dilution.”

Then and only then would I be interested to increase my position and hold. Otherwise I will continue trading in and out.

Getting your ducks in a row is ok I guess but slow the ones at the back a bit so they are not bumping into each other.

Den