Agoracom

Dear ,

As a longtime shareholder I'm very proud of the great management of this company. For this, I'm adding more shares every month to my portofolio but :

The big question is:

With current crude prices falling, at what point (measured in terms of US$ WTI for convenience) will CLL start losing money on its operations WITHOUT Algar. We will produce so long as we cover our operating costs and royalties - that isnormally the cutoff in our business. It varies by product - gas, oil , bitumen. bitumen has much higher operating costs than conventional oil or natural gas on a boe basis.

Algar, I hope, will be producing 10,000 bpd in about 2 yrs. So do we - we anticiapte we will ramp up to 10,000 bbl/d in 2010 barring any unusual delays or slwodown in our construction from weather or anything else unforeseen.

But will CLL be able to honour its debt obligations till then? We blieve that we can but as we pointed out in the recent conference call we also have some options available to us to add more cash or liquidity if we needed it. Like everything it depends on what happens to prices, markets, demand, the recesioon, or depresseion, etc.etc. We are better financed than most in our space with revenue, cash flow and available cash and credit and credit capacity!