re: Ann: Heads of Agreement - $50 million far... I think its...

re: Ann: Heads of Agreement - $50 million far... I think its because the deal is conditional, which I'm eyeing on AQO with interest.

So the biggest risk is whether Outback Energy can secure a 2nd stage funding to lock in this farm-in.

The highlight of it is that Outback must subscribe 36.5m shares at 25c per share or $9.1m worth. So if AQO can float around the current share price of 17-18c or even higher, then there is confidence the deal will go through. But if AQO continues falls, then market speculators will be betting the deal is likely to seal. Yes today is bank holiday, so traders are likely on holidays is a reason for the low volumes.

The ability of Outback to secure financing is also questionable, so market speculators will be watching this space.

Basically, wrt to the question when they can get the gas or appraisal wells? The answer is still some time to go as they will have to do exploration wells first to test whether the gas is there or not, if there is gas there to test the gas content and whether its economically recoverable or not.

The first year of the work program will if the JV proceeds, a 500 km sq 3D seismic in year 1. After acquisition and processing of the completed seismic survey, the geologists and geophysicists will have to interpret and identify the hydrocarbon potential where the traps are. Year 2 will be drilling 2 exploration wells, so forth.