JKA are essentually getting the TPT Morocco drill for $6m.. TPT will soon have 18m and if you subtract that from JKA's 24m MC at 7.2c, you get 6m valuation for the Morocco drill. That's pretty damn good. Sure the shares get diluted by around half, but if JKA were to raise 24m cash (theoretically) that'd probably be at a discount (6c) and introduce just as much dilution to SH, with only a monetary value. TPT gives them 18m plus a free carry on a well with the target giving them 106mmbls NET to the company. Factor in the fact that Morocco is touted as the most attractive country around for taxation on production, with brokers saying *possible* profits per bbl upward of $20/bbl. Of course there's risk here but the reward is enormous. I think JKA see this as an asset which fits in well with their strategy. They already have safer prospects but want to diversify into some higher risk but much much greater reward prospects.
JKA Price at posting:
8.8¢ Sentiment: LT Buy Disclosure: Not Held
