No ! All that QPN is handing over for US$133,000 cash is 7,600 option acres.
The approximately 40,000 acres comes about by the other two US E&P companies having 27,000 acres of their own to pool in with QPN's 7,600 acres which comes to a total of about 34,600 acres by my maths. But I think there may be some reason which is explainable for the difference. Don't ask what the explanation is!
So US$133,000 divided by 7,600 gives us about US$17.50 per acre. But if you added in the value of the free carry into the two wells and the saving in the rental on the relevant acreage then there is value there.
QPN Price at posting:
0.8¢ Sentiment: Hold Disclosure: Held
