Just take my words

The drilling so far on Monster had been paid by Quinto; that was the deal.

It doesnt take a genius to figure the costs had been at least $700,000

so far this year on Monster;  QIT had $400,000 plus the $500,000

So QIT spent certainly most on the money received from issuance of the convertible debt.

Second, to do a deal like this one, it was necessary to talk to the lenders.

I am a securities lawyer, no doubt.

Now lets talk about the debenture. A creditor is a creditor; the asset was an option

now its an undivided ownership in the claims.  Ask any bank where they feel more confortable ?

The 15% ownership in the property  is the answer.