Ann: PCL Investor Presentation October 2011 , page-9

I wouldn't discount a CR, its a possibility and will be required soon.

From the presentation, it now appears that 3D will be shot on L6 over Kifaru and another prospect, and there will also be 2D and 3D shot over L10A/B late in 2011, now the 3D may well be shot in 2012 but theres still quite a bit of expenditure here. Having said that the Flow / FAR merger states Q2 2012 for L6 seismic, so I guess we should wait and see. FAR have stated they are looking for a farm-in partner, I wonder whether Apache or Tullow may also be interested. I can see the % figures changing to 50% (another), 30% (FAR), 20% (PCL) with both giving up half of their ownership to the new partner, who would hopefully fund the whole 3D seismic, and hopefully a proportion of the 1st well.

The last cashflow report stated that they had $5.7m in cash with $0.9m to be spent in the following quarter, bringing cashflow to likely be somewhere around $4.8m now, we should get another cashflow and activities report this week, the last 2 were released on the 27th / 28th, so I would expect Thursday or Friday.

If the do the seismic on L6, L10a and L10b then I would expect a capital raising, and hopefully they will throw Namibia into this CR and get some 2D shot on their blocks there. I have very high hopes for 2112A.

I would expect all of this seismic (depending on size) would cost anywhere between $10-$15m. Usually the bigger companies don't bother with small size seismic so I expect 2D over a relatively large area on L10a and L10b, smaller for both L6 and Namibia.

If they could raise somewhere around 10c it would be a great decision, but if they only have L10a and L10b seismic, then I doubt there will be any need for the CR just yet, just depends what the plans are for L6 and Namibia.