Ann: PEN Investor Update - May 2012 , page-54

"Leaving that aside, I think it is prudent to base the future cash burn on AT LEAST the average cash burn over the past 2 years. That average is $4.3m. Add allowance for Knode and other admin costs and inflation index and a figure of $4.5m cash burn a Qtr is the appropriate figure to project forward (unless the drilling program is cut back - but that won't happen because they need to convert)."

^^ This.

I don't know why some people are getting defensive about this. They have clearly stated they expect to burn 6m this (mar-jun) quarter. I think 4-5m burn rate going forward is a fair assumption.

I also think with ~19m cash on hand (what I'm expecting in the quarterly) and a burn rate of 4-5m, it's not unreasonable to expect another CR next year.

One thing I was wondering is whether or not you expect this to increase/decrease/stay the same when/if production starts H2C13?

I put together a basic model trying to match their NPV 255m for Lance using their discount rate and U price (I came out with 259m, so I think I'm in the ballpark) and included 20m (maybe slightly high, but not out of this world high) exploration costs for the next few years to come as they indicated they intend to keep drilling for some time to come.