It's an all cash deal so if they can raise $100 million dollars they can pay off either the $90 million dollars that they owe on the debentures or they can buy back over half of the $195 million dollars that they owe on the first lien notes that are due at a huge discount in Canadian dollars as the US dollar continues to shrink over the next couple of months. This is the perfect opportunity for Connacher to reduce their debt. The stupidest thing to do, is for management to use the money for general purposes or to invest the money until they start the expansion at the end of 2011, and then apply the money towards the expansion The last time that senior management invested PDP's cash from a share offering they put the money into ABCP paper crap which crashed and marked the downward spiral of PDP's share value. No they need to do something smart with the money and they will get a lot more bang for the buck by paying down their debt in Canadian dollars at a discount, in my opinion.

The only other thing I can see is applying the $100 million dollars to a massive core hole drilling program to increase Connacher's bitumen reserves from over 600 million mmbbl of bitumen to over 1 billion mmbbl of bitumen and then look for a partner or a buy out.

Connacher also needs to sell off the 50% that it owns of the Halfway Creek property next. They shouldn't wait too long to sell off the refinery as it is profitable now and makes a good dollar (albeit a US dollar). It will be a good time to try to sell it next quarter unless they cannot sell it as it might be being used for collateral applied against one of their loans.

What do you think the money should be used for?

Cheers; Scott