Hi believe in CLL:

Thank you for contacting Dick Gusella and asking him if Connacher would give the PDP shares to Connacher shareholders. If Connacher has to pay the tax on such a transaction, well then now would be the time to do it as Petrolifera's shares are worth 8o cents each today. If Connacher gave us the shares that they owned before they went and spent $20 million last week to buy more PDP shares, they could have paid the taxes out of the $20 million that they spent to buy more shares in the new PDP share offering. I have no idea how much tax they would have had to pay on giving us the shares but I would assume that it would have been less than $20 million dollars.

Believe in CLL, My plan was to give the PDP shares to Connacher shareholders who owned the shares for 2 years or more. Connacher management has known for awhile that PDP would need to sell more shares to raise money. Had they stated that shareholders who own Connacher shares say before June 1st 2008 would be entitled to all of Connacher's existing PDP shares then, the institutional buyers who just took part in the recent Connacher share sale would not be entitled to any of the PDP shares nor would any other Connacher shareholder's who recently bought shares which would mean that only the original 210 million Connacher shareholders would have gotten a PDP share (13,680,000 PDP shares at that time). So each Connacher shareholder would have hypothetically gotten 0.065 of a PDP share free or 6 1/2 PDP shares for each 100 Connacher shares that you owned (before June 1st 2008 who presently held them). Oh well.

In reponse to your question about a merger, just quickly, since PDP shares are almost on a par value with CLL shares the deal could be 1 PDP share for 1 CLL share with CLL picking up Petrolifera's debt. I am not a takeover lawyer so I do not know what formula they would use but this is close enough for hypotheticals. I guess you would total the current value of PDP and subtract its debt (by looking at the highest offer PDP got to buy it's Argentinian division) and then adding up the value of Connacher and subtracting it's debt and working out the fractional value of a PDP share for one CLL share.

Best Wishes; Scott