Ann: Namibia-Mean Prospective Resource Estimate 8, page-5

re: Ann: Namibia-Mean Prospective Resource Es... Agree Was, no point farming out before result of Murombe. Wingat-1 has locked down this as an oil area (not dry gas, or water saturated). Now it comes down to structure and porsity, 3D seismic to hone drill location, the main outcome of the farmout. Should be able to find a partner just from Wingat for 3D at reasonable terms. The basin is on increasing curve of interest after the Chariot wells lowered to the floor Namibian expectations.

I am happy enough with ..."The information obtained, coupled with the results of preliminary studies of all data collected, allowed HRT to identify two well-developed source rocks, which are rich in organic carbon and both are within the oil-generating window. Also, the well encountered several thin-bedded sandy reservoirs that are saturated by oil," the company announced yesterday.

HRT share price has been in decline for a number of reasons, mainly starting from heated expectations, I think it was the Solimeos drill recently that really sent the SP over the edge, no oil was unfortunately a crushing indicator for the area as a whole, Wingat data was mixed... oil area but not commercial at drill site. HRT is now run by hedge funds, this would be more worrying for me, if I was a HRT shareholder...

Taking the extreme case, If you think Murombe is going to be a disaster and overturn oil data from Wingat-1, there is no point for farmout, as the the area will just die anyway, no activity, why farmout (if you could) and beat a dead horse. I am NOT sure how to construct that disaster, BTW.

Repsol, will probably drill the block immediately to the north of EL0037 in 2014. Their bock is closer to the Walvis ridge volcanics.

Agree on the second point, this is a deeply under-appreciated sector, the shift to dividend stocks is creating an extreme low tide in the sector as a whole. It has been truly amazing universal drag on smaller explorers in the last 6 months, deepening in the last 2. Tide will turn, PCL needs to remain well funded during this period.