someone's stake buildings, page-5

Hi Onceover,

Personally, I don't think the Ukraine situation can be compared to Kazakhstan.

Kazakhstan already has trade agreements etc in place with Russia in a sort of mini version of Europe as it is, which is what Russia ultimately wanted Ukraine to join and enlarge. Its also not right next to Europe either, so is of no real interest to Europe.

The only point you could argue is that its kind of linked to Russia through the trade group, so will it be hit by the sanction's that are on Russia and may get bigger? From all that I've read or seen so far, its only Russia they want to hurt no-one else. So unless Kazakhstan got involved in Ukraine which I can't see any reason they would, then I can't see them being affected in any way.

As to the takeover, hmm interesting thought, but do you think the other large shareholder would just let them do that and lose out after all this time? Following the loan note placings, others have reasonable sized interests to.

Also not entirely sure on this because your talking of a takeover of Jupiter rather than a sale of its assets, but as far as I'm aware the Kazakhstan government has the right to purchase any significant oil & gas asset (which block 31 with 100M barrels of C1+C2 is) at the agreed sale price.

Which in effect means company's can't go around thinking they can buy something on the cheap, because if they under price it the Kazakstan government will simply come along and say thank you very much I'll have that instead. So after all its efforts the bidder will end up getting nothing. So they have to pitch the price just high enough, so the government will feel there is not that great value left in it for them and not buy it for itself.

I can't see the government agreeing that the purchase of Jupiter direct is different to an asset sale, because they would view it as someone trying to get around the rules!! I'm sure the government has to approve the change in ownership of the assets anyway, so they could block the takeover that way. Never the less an interesting thought.

If you go back over the old documents Onceover, you'll see in them that assets sales are usually priced in the $3 to $5 per barrel of C1+C2 reserves in Kazakstan, I don't think the government will want deals going through below that, otherwise how will it attract others to come and spend money exploring the country when you get so little for your efforts?

I'm still looking for that $300M valuation target, so I'm sure are the big shareholders who accepted the $1.25 conversion price of the loan notes.

We just need some funding to move to another level, which is just so infuriating because its taken so long to achieve.

LOTM
LOTM