Psi81, I think you're forgetting that TPT also have 8m cash and 10.5m coming in shortly. That values the Moroccan drill at 24m, assuming zero value for the Aussie assets. 423mmbls target at 23% CoS with two other zones being tagged which brings the total to around 750mmbls+. Lets not forget those other zones have a CoS as well ;-)
JKA is in need of cash and sure they have 12m coming in, but it is over time and will probably be not enough/ too slow to fund developments of Aje. This suggests a CR at some point and dilution at depressed prices.
I think the deal is fair and if anything, as a TPT SH, its in JKA's favour. I was looking at least 100m by spud for TPT's Morocco drill, now I can essentually cut that in half. On the flip side, JKA are very attractive as they have some nice assets too.. So with a combined cash bucket of around 30m, that's pretty darned good if you ask me. They'll be able to fund a lot of the commitments JKA have and maybe get a start on Tanzina now!
JKA Price at posting:
7.0¢ Sentiment: None Disclosure: Not Held
