Ann: Placement & Company Update, page-74

Hi, You've mentioned Mauritania previously also as Woodside was previously involved. Senegal (a neighbour) was handled differently.

During evaluation (as similar oil bearing sands were found) they drilled multiple wells and dropped equipment down to test pressure drops between wells over a period of time to ensure connectivity existed. Mauritania failed as there were geological faults between the wells causing pressure to drop while pumping.

I'm not against an independent evaluation but I think it might be required as:

1. Woodside has not actually taken up the option yet. It's probably unlikely that they don't but management need to deal with that Risk regardless
2. We need to ensure that Woodside drills the Primary target first and kick up a stink if they don't. Could you imagine what our opportunity to sell would become if they chose a secondary target first so our opportunity to sell is reduced and we are forced to reduce to 10% on a second drill? Woodside have been proven to be cunning partners who were able to buy the Senegal assets on the cheap by making things undesirable for their existing partners. We simply need to be careful when dealing with them. This is my opinion having invested in one of those junior partners and experiencing it.

Maybe the relationship between Woodside and PCL will be better that the situation they had in Senegal. I don't have any questions on the competency for Woodside picking a good drilling target. I just have questions on how will they try to take advantage of us and its best for us to be prepared. Being forewarned is being prepared. If we check, then the wool can't be pulled over our eyes.

Just my 2 cents worth.