Hi Sharky:

In my opinion the answers to your questions still revolve around decisions made two and a half years ago. When the economic crisis hit and the decision was made to take Connacher production off line, there existed a state of under capitalization. Which undoubtedly caused panic at the same tiime as the decision to proceed with Algar had already been taken with an even greater comittment of capitaL. Then after two weeks oil prices started recovering and the decision was made to reconvene production at Pod 1. Surprise! Equipment damage had occured, with the result that enormous costs was incurred to right that situation preventing the resumption of the buildout of Algar due to the capital requirements of Pod 1. By the time all was done, there no longer existed the capital required for the building of Algar. Thus, Connacher had to in order to build Algar, had to recapitalize at a time of very tight credit conditions. Result, we were subjected to extortionate loan provisions.

Bottom line? Connacher went very risky with the original decision to build Algar in an undercapitalized state. When trouble hit, they did not have the resources required financially. Result? The miserable condition we find ourselves in today.

Though none here likely knew it, we got in bed with a bad decision making risk taker. What the he**. In his mind it was not his money at risk. Only his profit potential.

Yes, we could have at that time gone under and lost our investment. But, then again, we should not have even been in that position if sound decision making regarding capital planning had been in place. If it had, then the need for the panic decisions which were the nexus of the problem, would have never had been required. Beware of "mad gunslingers" playing with your money!

Brian