General Thoughts, page-5514

The value of the company would be based on the value (or expected value) of the assets as determined by both the seller (PCL) and the buyer. PCL has been engaged in evaluating the seismic, basically making maps of the expected reservoirs and determining the potential hydrocarbons in the ground, at this stage called a resource.

PCL has also undertaken a process called seismic attribute analysis (which includes AVO or Amplitude versus offset analysis) which looks at the response of the sound wave (seismic is just low frequency sound) in relation to what is contained in the volume between the sand grains (termed porosity) oil, gas and water all produce different responses when hit by the sound waves as both oil and to a much greater degree gas are compressible fluids and water is not. Compressing a fluid will take away some of the energy of the sound wave (or its loudness or amplitude or height if imagined as a wave) and put simply, examining the seismic wave amplitude (and how it varies in strength with distance (offset) form the source signal) can give hints as to the type of fluid in the porosity. This technique was demonstrated to work at the GALP discoveries!

Using this data OCL should be able to provide their version of how much they think they are worth. it is not uncommon for a 3rd party organisation to undertake either a complete review of the data or a QC check of the PCL work.

The purchaser will do a similar process possible also with a 3rd party.

The purchaser will propose a price and the target can ether decide to recommend to shareholders to accept of reject the offer. If the offer is ejected then the takeover is termed a hostile takeover it us up to the shareholders to prevent the purchaser getting a 'substantial' holding by refusing to sell.

If the target recommends accepting shareholders simply go to the Share Registry website and fill in a form and accept the money or shares on offer