cracker, page-8

Hi Scarabo,

It's always good to hear the negative side of the storey put so well. I trust you are not going to buy any PCL shares and will follow your own opinion.

I and the company prefer the optimistic line. Hardman started in exactly the same way. We know the risks but the rewards are worth it to me.

This is from the PCL website.

WOODSIDE KENYA FARMIN TERMS

Under the terms of the staged agreement Woodside will become operator, and :-

will shoot at least 2,000km of 2D seismic to earn 50% of PSCs L6, L8 and L9 (indicative cost A$2million);

has the right to conduct at its cost additional infill seismic (2D or 3D) in each of the permits;

must then elect in respect of each PSC to drill, and if warranted test, one well in the relevant PSC to increase its interest to 65%, or handing the 50% interest in that PSC back to Pancon and Afrex;

has a further option in respect of each PSC to increase its interest to 75% by drilling, and if warranted testing, a 2nd well in the relevant permit.

As the first phase of this earning program, Woodside commenced acquiring the 2,000km 2-D seismic program in the L6,L8 &L9 permits in August this year.

The indicative cost for each exploration well is US$ 15-20 million or Aus$ 23 -31 million.

If Woodside elects to drill 2 wells in each permit, then the total drilling expenditure for 6 wells could be in excess of Aus$ 138 – 186 M;

i.e. Net PCL = 38 -51 cents/share.

Woodside will meet all other permit and Kenyan Government costs associated with the 3 permits during the earning period.