guijarral hills, page-6

I thought you may raise that issue of how does QPN pay for its share of the cost of well drilling.

Now it does not have to be through a Rights issue.

QPN does have a producing asset.
Bullseye currently is producing oil and gas from J #1 and J #2.
We must be getting closer to GGP being able to declare more precisely the size of the Miogyp reservoir.

That will then give QPN an asset with a capital value.

On a very conservative basis let's say that the Miogyp reservoir contains 5 mmbo (forget the gas for the moment.)
So QPN's 5% share of that is 250,000 barrels. If we say that it could be valued at US$10 per barrel in ground then that would value QPN's share at US$2.5 million

Now QPN could sell that share outright for about that amount .... perhaps even US$3 million taking the gas into account because there is still the Camerina layer to be checked out properly yet as well.

Alternatively QPN could raise a bank loan using that asset as collateral to fund perhaps the first well. So a loan of US$1 million could be contemplated perhaps.

I am also interested to see what MDA announce sometime this week.
MDA has a 9% WI in Bullseye and back on July 14th they made an announcement about being in talks with certain parties about farmins and/or an acquisition.
Could MDA "purchase" QPN's 5% of Bullseye through some arrangement and also farmin into some Californian prospects.

(MDA does not appear to have any money either [other than Bullseye cashflow] but that does not seem to worry them)