Very good question, DB.

I suggest that Gusella was referring to $60 raw CLL Bitumen prices which will translate to about $105 for WTI oil.

Based on the official CLL numbers:

Operating costs ...$29/bbl

2009 Royalties ...$6/bbl (2008 ...$0.7/bbl)

Financial charges...$20/bbl ($15millions in Q2)

General and Administrative $7/bbl ($6 millions in Q2)

Taxes ...zero (they can use tax pools for few more years if they elect to do it)

Total cost......$62/bbl (of Bitumen)

WTI oil about $105 to brake even on bitumen production.

Assuming that the operating cost will go down to $25/bbl and transportation cost will go down to $1 (pipeline).

Total future (2009/10) cost will be about $55/bbl.

In 2011 their royalties will jump to $25/bbl if WTI will stay in $120 price range. This would require about $125 WTI oil to brake even.