I estimated $26.3 million on netbacks and refinery margin. Refinery came in at $7.7 million and upstream netback came in at $27 million, for $34.7.

They are doing more with less.

If, and that is a big if after listening to the conference call, they can get 4th 1/4 GD production average to 8000 bbl/d. They will be on their way to higher cash flows and higher confidence in investors. They have some production issues out on the table and if they can resolve them in an ongoing effecient manner then 8000 bbl/d is achievable.

The foreign exchange gain was nice to see as it does offset, in my mind, the interest on the debt for the time. It buys them time to get production up.

They are estimating 1685 bbl/d for a yearly average on Algar. If production starts commercially Oct 1., 2010 does this mean they believe they will achieve 1685*365 which equals about 615000 barrels for the year??? One can assume some production after commissioning and during steaming to the end of August and realistically more during Sept before possibly becomeing commercial on or around Oct 1 2010. Running the numbers at zero production before Oct 1 means a daily average of about 6800 bbl/d. They have not acheived this yet at GD so I think the 1685 may be a little high.

On the other hand I also think they are being conservative at $75 WTI. If they do think strongly at $75 WTI, then maybe a hedge right now for 9 months at $85 would strenthen their cash flow.