rig secured for pcl kenya blocks l10a & l10b, page-8

Of the African leases

PCL/FAR could go it alone on L6 (Maybe), given the cash, on one well. This would be insanely risky, unless you had high confidence on the prospect, or pushed to maintain the lease. PCL couldn't drill in Namibia without more funds. The other leases are all controlled by BG and Apache.

If you drilled and failed in this market you be hammered, even more than at present. Very difficult to raise funds for drilling at the moment, if you did the share price would get hammered.

Tick over Australian onshore leases, could look at restoring Kora area for oil production while waiting, if the economics worked out to cover base company running costs. PCL only has a small share, so it wouldn't cost much.

The name of the game at the moment, is cash preservation, to to able to participate when the Apache/BG decide to drill, and not be pushed into an unreasonable farm-out for L6 and EL0037. Don't want to be caught short in the next 6 months.

I am happy letting Anadarko and HRT lead the expensive drilling ($100M/well at those depths). Kiboko, not too distant from L10s, in the pathway. Definitely Wingat and Murombe are look-alike, very similar, geology (porosity/trapping mechanisms), depth, indicators, distance from coast, potentially parallel coastal deposit channels.

I think it is too exciting, watching HRT next door, one drill almost complete, another to begin.

"Oil industry consultants DeGolyer and MacNaughton pegged average prospective resources for HRT's offshore acreage in Namibia at 7.4 billion barrels of oil equivalent"

How much do you need? Knife edge moment coming up. :-)