lng qtrly out today, page-11

great post mgpnick - the research/sharing is much apprecriated.

i spoke to obl mgt and he indicated in his own special way (if you know him) that the q3 announcment re backreef higlighted in bold in the quarterly involves a significant farm-in by "an existing player" within the canning basin - lng imho. this informal agreement has been "worked on over the last few months" and will soon be formalised; this is why the obl director recently purchased $100k worth of shares at around 3 cents imho

farm-in involves cash for previous outlays by obl and still allows for bru 30% buy back option - ie no need for cr. the deal was clinched as there is a rig readily avail in derby - this is not being used as it is configured for only shallow wells i.e. < 1000m - each well will cost circa $1m. the production testing of backreef-1 will cost even less.

it is already august so the announcement re the farm-in will be as soon as this month and no later than next month!

don't forget backreef report due in next two weeks - so formal farm-in will come shortly after

as always watch for the leaky boat a few days out for the pending announcemnt.

i am happy to sit - dont think it is appropriate to say how many shares i own but am top 5 share holder.

re t/o - was advised "existing player" keen to exploit backreef oil but their real interest lies in gas so "anything is possible".