qpn-short gains viable

Ok, so after reading through the presentation put out today by quest petroleum i would like to put up my analysis of what i consider a valuable tool which has been extremly well put together and very value adding in terms of exposing quest petroleum to the investing community as we are on the verge of drilling a company making prospect with many bags possible on any sniff of gas as our 35% c.o.s. rate is suggesting-

some points of significance which i find most important in helping quest petroleum gain some much needed attention in the next fortnight in anticipation of our major drilling target (sourced from todays presentation)

*unlike many oil and gas juniors drilling wildcat wells, we are drilling in a world class "proven hydrocarbon" system with oil, condensate and gas production

*we have an option of a follow on target in 2011

*we are drilling in the vicinity of nearby producing fields

*extensive infrastucture in place to take oil and gas to market which breaks down a lot of bottlenecks juniors experience.

*our drilling targets are onshore targets therefore being less riskier than the drills off shore- in relation to bp's unfortunate gulf of mexico disaster.

*drilling in a region of high historical exploration success rate for oil and gas where several large fields have been discovered

*most targets in the area targeted lower structures-Amazon and Thames targets are significant in that they are targeting deeper and larger structures

*In a relative context to other big exploration plays, considered low-medium risk P.O.S. 35%

*Analogue fields indicate very good reservoir properties. 12%-23% Porosity. Success with good porosity could ideally mean that no further fraccing required and commercial flow rates could be achieved if we drill the sweet spots.


The faithful quest petroleum investing community which frequent this thread will know that I am a great believer of this company beyond the upcoming drill as I feel their launch into the Indonesian oil and gas industry will prove to be a masterstroke once exploration activities heat up there. The only downside on todays presentation is the fact that I feel we have been undersold to some extent and many people viewing the presentation may not understand the variables which prove that our upcoming drill campaign is worth more than 18cps potential unrisked valuation-

From a company which not to long ago was hovering around 1.2c a share, sure 18cps sounds fantastic and the downside minimal but investors please note- 18CPS IS CONSIDERABLY UNDERVALUING THE UPSIDE POTENTIAL TO QUEST PETROLEUM-

From the slides in today's presentation I would like people to understand that the 18cps potential unrisked valuation is based on two assumptions which is very very conservative from the makers of this presentation

assumption a) very conservative oil price (NPV) US$25 BBL
currently trading in a range of US$85-US$90BBL

assumption b) gas pricing used (NPV) US $1.00 MCF
currently trading in a range averaging $US3.50 MCF

Based on the very conservative pricing used , i have come up with rough valuations for the amazon and thames prospects with the more realistic prices for oil and gas below- happy to be proved wrong and would appreciate for someone to see if this is true so to speak-


Amazon prospect

p90 0.175 cps
p50 0.42 cps
p10 0.98 cps

Thames prospect

p90 0.07 cps
p50 0.105 cps
p10 0.175 cps


ACTUAL POTENTIAL UNRISKED VALUATION- 0.63 CPS (INCLUDING OIL AND CONDENSATE YIELDS)

Another point which I would like to understand is why one of our major drilling partners and expertS in the local area is never highlighted on our preso or in our press releases. For those that have been following the quest petroleum story for some time, they would be aware that Caza petroleum is a major partner in this upcoming drill and their track record of late will prove their expertise in acquiring and drilling targets with high success rates. It is beyond me why the savvy quest petroleum individuals did not make Caza's involvement in this drill project a major focus on this presentation. Caza has had great success in the past especially in the local area and are gaining broker support due to their ability to drill company making targets.

Persoanlly I would have been very happy to see Quest Petroleum sell this point to the investing community to prove their ability to gain relevant working interests in projects held by local drilling experts. Below is the press release regarding the working interests which Caza Petroleum holds in regards to this upcoming drill. As a personal note, I would strongly suggest those looking for further confidence on buying into qpn pre spud date to research caza petroleum in more depth. Their ability to acquire successful projects and turn them into producing assets should give you confidence that they wanted in on this "BIG EXPLORATION WELL"

Anyway people- let the momentum continue and hopefully see the end of the 1.4c-1.6c trading range - nothing is certain in life but pre spud this one could really do wonders- just look at vil's ability to hit 10c on a sniff of gas on a less value adding project than ours- dyor always people and happy trading- sugadante-



? Arran Prospect, Acadia Parish, Louisiana. Caza expects to commence drilling the Marian Baker #1 well on or before December 15, 2010. Caza has acquired additional working interest from two internal partners in the prospect and will now participate with a 25% working interest before casing point and a 35.94% working interest after casing point in the Marian Baker #1 ( amazon )well with an approximate net revenue interest of 26.24%.

sourced from-

http://www.oilvoice.com/m/n/Caza_Oil_Gas_Announces_3Q_Results_and_Provides_Operational_Update/19ebb07fc.aspx