General Thoughts, page-572

WDS didn't spend (my estimate) $50m USD to do the expanded 3D seismic because they thought that there was only 500mbls of available Oil & or Gas.They are hunting elephants .......... big elephants ...... We don't want to be caught like NWE with a massive Oil and Gas acreage and have it stolen from us like them with a paltry market capitalization and therefore a pathetic takeover share price.We are in a better position than NWE as we do not have a 20% stake holder who got that 20% for bugger all.The management at PCL didn't issue themselves with shares and options because they thought it was going to be a pathetic reservoir.After the first well, which will be paid for by WDS, PCL will still hold 20% of the acreage, not 10% as you claimed.Until WDS decide to drill and take up their agreed allocation PCL own 75% of the acreage.If there is a reservoir there then our 75% is huge and is an attractive saleable commodity that other giants will be looking at.I fully expect that WDS will exercise their right to 56% of the acreage and drill the first well.By then the PCL share price could be something substantial and raising our 20% of the next well may not be beyond the ability of PCL to fund.If the 2nd well is as good as the first then PCL will be in a better position to negotiate a greater residual royalty or a much higher price for a percentage of our 20%.I find it interesting that you are selling our acreage short at this point in time. How can you be so derogatory of the Saturn potential when the 2D seismic encouraged WDS to come on in to test the potential of PEL87 and the early commentary from the special general meeting commentary given by Iain Smith(as reported by a poster here) that the 3D seismic was supporting the 2D seismic analysis?