Ann: PEN Investor Update - May 2012 , page-56

Fluffy - I had assumed that the 'pre-construction' development activities mooted for 2H12 were to be funded from the capital financing package still under negotiation.

However, I have re-read the 4 Jul announcement and find it ambiguous. Specifically, it states:

"Proceeds raised will be applied to development and construction of the Lance Projects, Wyoming USA.

The Company’s construction plans for the second half of 2012 include the installation and testing of a deep disposal well, installation of production monitoring wells, the ordering of certain components for the Central Processing Plant (CPP), and the commencement of civil works in preparation for the CPP"

The 1st para is key. The 'development' referred to could refer to the on-going drilling program. However, the 'construction' part seems to refer to the wells and components of CPP etc.

As you are alluding, if this IS the case, then a cap raise will be required well before mid-2013, unless any funds expended are re-imbursed from the eventual construction package financing (strategic partner).