It looks like the market fully discounted another disappointing CLL quarterly results and lower production guidelines in to the future. CLL SP holding steady this morning.

Earnings of $3.64 million ($0.01 per share) was presented only for the reporting purposes.

If you exclude $7.25 million of "imaginary" unrealized gain on remeasurement of convertible debenture and $14.98 million gain on assets sale the earning from the operation would show $18 million losses ($4 cents per share).

Their realized bitumen prices in Q3 were ~$41/bbl. This is much lower then my overly optimistic estimate of $44 (based on Alberta`s Hardisty prices). CLL blame this on increasing transportation cost.

Bitumen production is dropping and stuck well below $14,000bbl/d ($13,452 bbl/d) with all wells operational).

It seems that there is nothing that CLL management can do to increase the cash flow from the operations. SAGD+ is yet to be proved as a profitable alternative.

In next 7 months CLL has to come up with ~$180 million (2 interest payment instalments and the convertibles). In addition to the search for the JV partner, selling assets is the only alternative they have.

Good news from the outside of the Q3 report is that the Bitumen prices increased recently by more then 20%.