Hey Shepp,

Not exactly. The Company Nalcor which was only created earlier is owned or is technically a crown (or government) owned company. It is created from a branch off of Newfoundland and Labrador Hydro. So now in theory Newfoundland and Labrador Hydro are now a branch or division of Nalcor Corporation.

Nalcor has committed to a $20 million dollar drilling program on the west coast...parsons pond. Civc has no finicial obligations to Nalcor all they do is get 1.5% of whatever profit Nalcor makes off of their drilling/exploration. CIVC can take this profit in whichever way they want. The obvious choice would be in cash....which they could use towards their own drilling of the GPS. Being as Nalcor isn't a publically traded company taking cash is really the only option they have.

This is really good news for us. With Nalcor's drilling to commence sometime in late Sept (I think). We should start seeing some increased activity and definitely increased interest in Western Newfoundland Oil and Gas. As soon at Steve releases or lets out their findings from the logging of the well we should hopfully see our SP shoot up...

Although the deal with Nalcor is Good. I still think that we are going to have to wait a while for any kind of real cash flow from it. But between now and them a lot of deals can be made and information released to hopfully make us all very happy.

Regards,