Ann: DJ Carmichael Issues Research Update on Jack, page-3

re: Ann: DJ Carmichael Issues Research Update... Yeah Somaliland is surprising me too, although maybe it shouldn't have - the reason it was unexplored for so long was because of the war in Somalia, not because it was unprospective.

If the bigger boys are moving in to take up early positions it tells you they like what they see, and I also didn't connect initially that these basins are actually the same basins as those in Yemen that were split by the opening of the Gulf of Aden.

In other words, highly prospective.

Also impressed by the valuations of HM, Aje and Somaliland - 96c in aggregate, unrisked. Aje risk is minimal anyway and worth 40c, assuming JKA can fund their share.

Funding is really the only issue for these guys. If they find the money to fund HM (the success of which is a technology issue only, the oil is proven) and Aje (already commercial), they are as close to a no-brainer as you're ever likely to find in the O&G industry.

Meaning, still high risk, but not ridiculously high risk. :)