information to this forum, page-15

As previously posted on several occasions, I was asked for a general opinion which I opted to answer on my own calculated assertions. In relation to my estimate of SP between 40 cents to $1, this was based on a long term view once the company progresses into production on the basis of data provided by QPN.

My assumptions relied upon for my calculations are based on the announcement provided by QPN Technical Director Saxon Palmer on the 17th of February 2012 “Joint Study Indentifies Prospective Resources”, to quote:

“The Joint Study estimated unrisked prospective resources in these four leads of 55million barrels of oil or 140 billion cubic feet gas...” (refer to methodology provided within the announcement)

“The Studies indicate these prospective resources could potentially be economically produced...Estimated well and seismic costs are likely to be low at US$1.2million and US$2.0million (for 500km of 2D) respectively.”

In terms of dilutions of shares, irrespective of a CR, what gives me comfort is that a USD1.5 million bond has been provided. This could possibly be used as security for the purposes of a short-term loan? Refer to QPN announcement released on 22nd of November 2011, quote:

“Quest will commence an expedited exploration program including 2D seismic and the drilling of priority exploration wells. As a condition for the grant of the Ranau PSC, a new US$1,500,000 performance bond has been put in place for the Ranau work programs, which can be reduced in tranches upon completion of certain exploration work program activities, with the moneys refunded to the Company.”