Wetcoster,

Nice summary of the situation the CLL is facing in. Allowed me just a few points here;

1. The crunch is coming but it is not imminent yet. Low bitumen prices will have negative effect on the cash flow but the $50 million interest payment is due at Dec 31. If the Dil-Bit prices will not move up CLL has a $50million credit line to keep going until June 2011.

2. At the present Dit-Bit prices (see next post) they will start braking even at 16,000 to 17,000 bbl/d. The problem is that even with 20,000 bbl production they will make only $35 million a year of the free cash flow. Algar extension (as per management ) will cost about $600 million. Simply it is not possible for POD1 and Algar to carry the expansion project.

3. Without Expansion there is no growth here and the CLL SP will not move up much.

4. Expansion Funding can come from the partnership, new debt or 300 to 400 million new shares.