The best info I have is that governments (who did the seismic) are not normally in the business of doing sufficient to define a drill target. Rather they do sufficient to show (hopefully) that an area is prospective and then leave it up to oil companies to do more detailed seismic and then hopefully drill and find oil. The payoff to governments is the royalties and taxes which they will collect if all goes well.
If the above is correct and the results of the reprocessing are positive then I would expect the following.
1. Negotiating a lease over or buying the prospective land.
2. More seismic.
3. More processing
4. Drill
5. Find oil or gas
Of course all of the above assumes that all goes well and the results of each step are positive and, based on the Co's record, it will take time.
If not, then they may do seismic on the land which they have purchased and proceed from there.
Whatever they do I expect that they are going to need more funding. How they will get this I have no idea. The market value of the Co is only $6m (Etrade) so if there has to be a capital raising then I would expect massive dilution. Perhaps they could do a farmin if the results really good but this, of course, would also create massive dilution.
QPN Price at posting:
0.2¢ Sentiment: None Disclosure: Held
