Lightstream Resources Ltd. LSTMF

Hypothetically Speaking

[whitehorn1]

I worked in the forest industry in 2007/08 when it was facing a very similar situation as the oil sector today. There were many operations that cost money to run "every minute" and hence were shut down, while some companies tried to ride it out in hopes of better time. The end game, many mills shut down, companies did survive that scenario. NOW - will companies in the oil sector shut down losing money operations and simply make interest payments on the loans if they can afford it? To me, it would make the most sense to keep it afloat i.e. shutdown, as the BIGGEST cost is your losing money every minute in production. Companies under severe stress like LTS may not have that luxury, but then again if they were able to accumulate 75 million dollars to pay off debt, perhaps be in a better situation make payments only, instead of losing more money, provided in agreements to shark infested bankers. I expect the oil downturn will be at its worse the next 6 months and this would make more logical sense in my opinion - shut down and revisit money losing productions areas.