The process being tested in Axe Lake is innovative versus the rest of the SAGD users out there.

JV partners will sit on the sidelines until the variated system works unless one has the foresight to jump this before? Thats unknown.

Otherwise some bitumen must come out of wells at Site 1 and/or 3 to get the ball rolling-just the way it is!

Your question on cash is a good one. They got about 50 million right now. Proceeding with their plans as listed now gets them well into 2010 before the need for money becomes acute.

Realistically there is much more they could do in tandem with current plans if they had the cash. They are in conservation mode currently! Core operations to advance only.

They will need to dilute to continue within months or they can sell/JV another asset like Eagles Nest or Oil shale rights.

They are at critical time in Axe Lake over the next 9 months. They are just not going to fold up their tents and go home at this point.

All of this uncertainity leads to its current PPS. You can decide its too risky or you can look at it as the chance to get in cheap-the choice is up to you?

Don't ever bet the farm. Its 7% of my money-thats it! its worth a run to me! two/three years ago it was not!

Kutz