Ann: Letter of Intent for $100m Northern Territory Farmout to AEP, page-7

So.. I don't want to ruin the excitement, but the LOI is not a done deal. With a 3 month initial period, and it will only cost $250k to have another 3 months added, while on paper the possible farmin does prove that AJQ management have been able to garner some interest, holders are going to have to wait for quite a while to see actual signing and agreement etc. With the sector getting absolutely hammered right now... well while AJQ is cheap on paper, for now, its cash pile will continue to shrink.

Also, AJQ have wasted another year what could have seen ground operations occur. So now actual work will not occur until April next year. Its a long time to wait. Anyway, I think the terms look good considering AJQ have little cash and not a strong bargaining position, just a matter of whether AEP will actually go ahead with it all. If the price of oil continues to fall, they may have to pull back on things like this farm in (although I am sure they realise that the U.S dollar goes a lot further in OZ).