I look at the risk as being there because of factors like the economy and price of wti, but have that risk as low for 2010. I only look at 2010 because once they start producing above 6000 bbl/d at Algar, then CLL management will have the option of hedging, they have that option anytime but probably wouldn't look at it until above 6000. I know Jurek does not like hedging but it does secure cash for a time frame as they build the balance sheet, which is needed to solidify the company.

If they hedge lets say 8500 bbl/d at about low $90's for 2011 then they will survive and prosper. The other barrels will most likely go betweem $85-$100, but if wti dropped to lets say $30, they will still have the 8500 that they hedged at $90 to carry them back to another normal WTI price. I don't believe oil will go below $50 again as too many global producers will shut down production quicker this time.

The building of the Algar plant is almost no risk in my mind because if they can do something good it is building a plant.

Of course we could have another major meltdown, but I believe that won't occur in 2010 or 2011.

So hold your core shares and maybe trade a smaller amount, imho.