It appears that the higher SORs at Algar are part of the reason for the increase in operating costs. Last year Pod 1 SOR was at 3.5 and this past quarter has a combined Pod 1 and Algar SOR at 3.8. Higher SOR, more gas burned, higher operating costs.

I, for one, do not have a problem with CLL rewarding their employees. I have a friend in the industry (Conklin) and he informed me that they hired one of CLLs foreman, a few months ago. I'm in the utility industry and it doesn't take a lot to get the planets to align and have disaster strike. Experienced employees are an insurance that avoidance of these occurances will not hamper our investment growth. As for management, I'm no brainiac, but it's easy to tell these guys have been around and their record speaks for itself. CLL has resources in the ground, two operating SAGD plants, and a refinery. One thing I have learned by following CLL is that the share price is buoyed and battered by external influences, constantly. (ie: oil price, market sentiment, debt, environmental, etc. maybe even manipulation, I can't tell for sure!)

Would a change in technology to remove bitumen from the ground require a resubmission to the AEUB? A recent "Canadian Business" magazine article high-lighted using propane as a diluent to "soften" the bitumen for pumping from the ground, rather than SAGD. Unproven technology thus far, but no extensive use of water or natural gas.