Ann: Letter Of Intent Executed for Pathfinder Far, page-3

re: Ann: Letter Of Intent Executed for Pathfi... 'Will be carried for 100% of the drilling costs of the next 2 horizontal wells that will be capped at USD$12mil'

Effectively means all the upside at Pathfinder to complete the program is free.

Assume the first will be the shut in well at Pathfinder, revisited to drill out to Hz. A total of three Hz wells at Pathfinder should prove up the project to next-phase funding. If they've learnt anything from the producing well, there should be time saved as well as money.

A 3-well program should also make a better GSA case. 20% farm out would have been nicer but the other party has to make a quid too I suppose. No word on who but more than likely the holder of the remaining 15%? Anyone care to speculate?

Another way of looking at it is that someone thinks 20% of Pathfinder 'risk' is worth $12 million. Not a bad endorsement for now.