Ann: Jacka Executes Farmout of Odewayne Block , page-13

Hardly seems like it was a desperation farmout.

Remember Genel farmed in to free carry JKA through the next 2 exploration programmes, with an expected cost of $50m. Therefore the block value a year ago was $50m gross. The Sterling farmout values the block at $100m.

Whilst the upside was huge, so was the risk so to be able to farmout on pretty good terms, which not only reduces their operational risk, but provides valued capital thats requried now (any value from Somaliland won't be realised again until at least 2015), then I think this was a great deal.

It may have been being worked on, or may have been opportunistic of JKA knowing that Sterling just got their first 10% for $10m and thought they should have some of that.

I like it, it decreases JKA's risk on a highly risky block, and provdies them with immediate capital, which will go a long way to funding both HW3-ST2 and also the inital Aje development being as they also have access to the convertible notes.

Bear in mind, most on here have lamented the BOD over the last few months for not ensuring funding etc which has only helped to dent the price, I think they have listened and have closed the funding gap to secure the future development of Aje (initial phase at least) and the continued exposure to Hammermet West.