Aside from large debt, mis-management, and stock dilution, I believe there is a stronger underlying problem lingering that is really starting to impact the SP.
Dispite claims by management of state of the art technology, repeatability, and future production goals, POD1 is consistently underperforming.
Did the curtailment of production back in 2009 affect the level of future production? Will Algar repeat the production performance of POD1? What happens if a future curtailment is required? Do they just lose money hand over fist to keep production up or do they curtail production at the cost of future production levels?
10,000 bpd minus 7300 bpd is a whopping 2700 bpd. This is a huge problem that needs to be addressed. We're coming on almost two years after the curtailment and production levels are still not where they need to be.
If we can assument that POD1 is used as a model, we can assume that management's goal of 50,000 bpd by 2012 will really be only 36,500 bpd. Assuming 360 days of operation and an average netback of $20/barrel, this would amount to almost $100 million dollars of profit per year. There goes the money to pay back the debts.
I believe stock holders are due honest answers regarding production levels of POD1, Algar, and future PODS.
-Oilman
