What? Aww shucks!We have PCL's ann report stating it's a...

What? Aww shucks!

We have PCL's ann report stating it's a farm-in.

Is it a farm-in of just an exploration well?

Of what value is 20% of just an exploratory well? Why bother splitting the exploration well into percentages if there's no revenue to speak of? Is it just to split the cost of an exploration well?

But, hey, they'll carry our 20% of an exploration well!

In the broad terms of the Ann, which is all we have to go on at the moment:

"In exchange for Woodside fully funding the survey, Woodside will have an exclusive option to enter the PEL 87 licence and Joint Venture with 56% and Operatorship".

Pardon my ignorance but I took that to result in a production well.

Else, again, what does a 20% of an exploration well mean? Why bother splitting it up? Why not just say, "Woodside has generously offered to fund a 3D survey (to be operated by PCL), and operate an exploration well for free for PCL and partners so that we all know what's there."?

Oh, and Woodside to pay PCL $1.5 million, to give to Custos, to buy 1% of their share in the exploration well (which has no revenue but give it over anyway).

Oh wait, Custos and NAMCOR, you're not free carry. Pay your share of the costs of the exploration well. (Custos, less 1% that PCL buys off you)

Perhaps I was naive to assume that when they start talking percentages, they're talking of a deal that has a revenue component.

I hope to be better informed by the next Ann.