JKA 0.00% 0.3¢ jacka resources limited

Ann: Aje Field Development Plan Approved , page-5

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  1. 1,668 Posts.
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    By the way, I think they will need more than $10m of financing by the end of the year.

    Pay of debt facility - $2m
    G&A - $1.5m
    Aje exploration well - $2.5m (expect circa $40m gross cost)
    HW3 appraisal - $5.5m (expect circa $35m gross cost)

    Total cost = $11.5m

    I know they may get something from Sterling by the end of the year (end of 3rd exploration period), but I would favour a partial sale of the Bargou permit of required as I think 5% could generate some good cash. At 27m barrels of contingent resources to JKA, 5% is about 9m barrels, which upfront they may be able to get about $13m for it. I think they should be able to negotiate a further contingent payment upon getting to FID (or something of that ilk, may be production, may be earlier), which may increase total proceeds closer to $20m for the 5%. I don't think thats out of the ballpark (total value would be a touch over $2 / barrel).

    Anyway, thats my preferred strategy, get some equity finance of hopefully arund $10m and then progress the sale of this 5%, which would provide JKA with a good source of cash to progress their projects and potentially look at expanding the portfolio.
 
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