Folks, The proposed PSA cash balance at US$37 mil equates to a...

Folks,

The proposed PSA cash balance at US$37 mil equates to a cash per share value of  :

US$37 mil / .94 exchange rate / 231.2 mil shares = AUD 17 cents per share ...

PSA shares are currently trading at AUD 11.5 cents which is 32% less than cash ?

The sale also includes a continued PSA working interest in Main Pass 270, 273 and 274 of 12.5%.

In summary , PSA have :

1) Adeline Well # 4 coming on line within the next two weeks ...

2) English Bayou still to drill (possibly in QTR 3)

3) Main Pass 273/274 (Hummer Prospect) still to drill in Qtr 4

4) Continued ongoing income from Main Pass 270

5) Continued ongoing income from Main Pass 18/19 (although minor)

6) Cash at bank US $37 mil / .94 exchange rate = AUD$39.3 mil in the bank.

With these new funds in place and as part of the sale agreement, I undertsand PSA have been given an opportunity to particpate in a further four (4) prospects that the "purchaser" has on his books.

PSA are considering these prospects, one has been passed over, Adelaine Well # 4 has been taken on and a further two (2) proposects are still under consideration ...

The sale does appears to have been for better than book value.

I personally like the idea of cash in the bank as you can then choose the direction you wish to follow as opposed to being tied into an arrangement.

The opera is definitely not over for PSA and the management appear to be positioning the company for future directional changes that will hopefully improve sharehholder value ...

Cheers

PeterRG