The value here is a strategic alliance with a very deep pocketed industry investor. IMC will hold about 15% of KIK common shares and will want her to suceed in delivering long term growth and shareholder value. I would imagine now KIK will also hold its equity in the Sicily Channel plays early next year and deliver new plays alongside IMC. Should KIK end up with 'only' 20% of shefal SC54 and 20% carried in the deep plays , this represents a significant achievement for a junior exploration company. So many other juniors in the ASX oil exploration game would bend over backwards to have such a heavy hitter behind them. It is clear that these kind of strategic deals and/or farmins are very hard to come by in todays enviornment. Have any similar deals been achieved by anyone else lately? Not that I can see. Plenty trying though. Regarding the 18.5c strike price it should be remembered that this deal was likely initiated many weeks ago and that 18.5c reflects the weighted SP average over a month or so. KIK was 15c 2 weeks ago about the time that this deal would have been in the final phase. Look for an interesting ASX release from Laurie Brown to accompany his 'Good Oil' conference presentation today. DYOR
KIK Price at posting:
21.7¢ Sentiment: Buy Disclosure: Held
