Pancontinental has prudently prepared for the possibility that...

Pancontinental has prudently prepared for the possibility that Woodside may elect not to farm in to PEL 87 and a process is already underway to secure an alternate farm in partner to fund exploration drilling within PEL 87 at the earliest opportunity.PCL has received third party interest and, given its low quarterly cash burn, remains well funded to progress the farmout process (as per today's ann). They also get to keep the valuable 2 & 3D seismic which Woodside have already paid for & they (PCL) were forbidden to talk to anyone until this option was either exercised (or lapsed) by WDS. I can't remember what they spent on the seismic but it would have been a lot. This now means that PCL holds a 75% interest in the PEL 87 joint venture, which in poker terms means plenty more outs.Pancontinental has also released its estimates of prospective resources for PEL 87 with six additional leads, with the Oryx and Hyrax features now considered as prospects.The total high case prospective resource is estimated at 3.8 billion barrels of oil (net to PCL) while the total high case oil-in-place resource is estimated at 12.7 billion barrels of oil.I chatted with Iain (the boss) briefly today, obviously it wasn't all Kum By Ya but he explained the numerous options they have on the table now & that made me much more comfortable.