question, page-6

Heraclitus,

First, I am a JKA supporter.

I do, however, have some issues w HW3. For starters, Brokers always attribute 17MMBbls to JKA being 15% of 110 MMBbls resource estimate. This ignores it is a PSC and there will be a take by the national oil company. Lets say 50%. That reduces JKA share substantially.

Next, describing it as an Appraisal well is a bit of a stretch as two previous wells produced only small quantities. There is no proven field or discovery to appraise. All that is new is use of horizontal well technology. The rocks haven't changed. I would think a POS of 20% would be fair.