Rebels
No! I meant the shutdown of POD 1. That was the act which put the entirety of CLL at risk due to field damage.
The move should have been to put Algar on temporary hold while continuing to operate POD 1 until one had a better idea of how the oil market was going to react to the economic crisis.
By the hasty decision to shutter POD 1 the totality of CLL was put at risk with the potential of field degradation. Which was in fact what happened when three weeks later they reinstituted POD 1 production, they rapidly learned of the damage which had been done.
In any event, the core problem was a general situation of proceeding with Algar in a severely under capitalized position. One should never ever, place the totality of your existance on one throw of the dice. And that is precisely what Gusella did when cutting himself short on continency capital.
If any here wish to know the cost to CLL, all that need to be done is look at the CLL SP prior to the crash in 08 and compare it to todays SP. Which by the way, has declined by two-thirds.
Now tell me about management effectiveness!
Brian
