california dreaming

Well till we find out for sure whether "Amazon" or "Arran" is our prospect and whether whichever it will be will be spudded in July or September we ought to bear California in mind too.

Back in about May SGY announced that it had arranged a farm-out agreement with a Los Angeles "Investment Group" (Hmmmm wonder who is in the Investment group ???)and will be conduction a two well programme.

Yep ! Guijarral Hills is going to get checked out. And it is supposed to happen in August.

Now remember that QPN has a little bit of an interest in what SGY manages to do there because of this detail:
"The consideration for the portfolio of assets is 6.5 million Solimar shares that will be issued to Quest
after all necessary approvals and assignments for the assets are achieved. The shares will be subject
to escrow for a minimum period of six months. The shares will be issued under the Company?s 15% capacity.
Quest will also receive two, staged cash payments of A$250,000. The first payment is due to be paid
in mid June 2010 and the second at the achievement of certain necessary approvals and
assignments. The cash consideration will be paid by Solimar from working capital."

Now that agreement between QPN and SGY was struck back on 10th June (2 days before the farmout agreement with the investment group).

So QPN will have to hold those SGY shares until at least November. So if SGY strikes oil in GH then QPN could gain slightly if the SGY share price rises.

Oh ! It's all happening ! (slowly)