One of the aspects that MF pointed out was the arrangement with...

One of the aspects that MF pointed out was the arrangement with Salinas for it to acquire about 3,000 acres of certain Kettleman leases.

In this deal SAE will need to do the work and identify a possible target. If they do that and drill it before the end of 2009 then SAE will retain the lease (I presume) but QPN will have the right to back into the well if successful to gain 10% of it.
If no well is drilled before the end of 2009 tthen the leases revert back to QPN.

Now I would interpret that agreement to indicate that SAE is keen to have a go at this area. It has expertise in heavy oil which I again presume these leases to contain.

In this way it allows a shot at an area that QPN would not have the time or resouces to focus on at the moment and it keeps those leases alive. If SAE has success then QPN has the opportunity to get 10% of a confirmed producing well.

Surely a WIN/WIN