Hi Wasa/Saltocan/Fella'sWas talking to Ernie(PCL) yesterday,...

Hi Wasa/Saltocan/Fella's

Was talking to Ernie(PCL) yesterday, about L6 onshore farm down. Did not really go into Sunbird to much, as at this stage there is not a lot PCL can say, but results expected in middle of next month. Not sure if anything will show up in trading, that something we will have to keep an eye out for. Got the feeling PCL still have there fingers crossed.

Really happy that L6 JV, split L6 onshore/offshore.
Farm down of the whole of L6, would have likely only seen movement offshore. When GOP/FLOW/FAR and PCL first looked onshore L6 a handful of years back, they seen Kudu and Updip Kipini leads as gassy smaller targets, then there were environment issues with Kipini trust, so the JV moved there interest to the bigger offshore targets.

So Milio joins as onshore L6, WHY is the question l first asked myself. As we know they are next door in L20(western boundary) onshore Lamu basin. Millo have done more homework on there onshore block than we have on our onshore section. So what have they seen that would encourage them to take over operatorship of just our onshore section of the block. I think it is to do with the overhanging unnamed structure on the western boundary. Can be seen on FIG 1, on PCL's release on the 4/02/14,

http://www.pancon.com.au/investor-centre/asx/2014/reports/040214.pd

Looking forward to seeing Milio release a forward works program, in the next month or two, it will explain alot. What l will be looking for is, what area the 2D will be collected, that starts apparently in April and what they think they are chasing.

Not much on Milio, as they are a private Co, but appears L20 and now L6 are there first real look at exploration. So why Kenya L20 & L6?? as an opener?. Will prick my ears if they think they are chasing oil, rather than gas??.

Enjoy,

Shovel.